Alternative Energy Trade Option: Energy Conversion Devices Inc. (ENER) Review
  • Stock Alert for Energy Conversion Devices Inc. (ENER)
  • Renewable Energy Trade Option: Energy Conversion Devices Review
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    Stock Alert for Energy Conversion Devices Inc. (ENER)

    Energy Conversion Devices Inc. (ENER) manufactures and sells thin-film solar laminates that convert sunlight to energy using proprietary technology. It also pioneers other alternative technologies – including being the inventor and developer of NiMH to licensees worldwide and a new type of nonvolatile digital memory technology that is significantly faster and less expensive, ideal for use in a variety of applications, including cell phones, digital cameras and personal computers.  Distributed globally under the UNI-SOLAR brand, the Company’s solar products are ideally suited for cost-effective solutions for roofing applications because they are lightweight, durable, flexible, can be integrated directly with building materials, and generate more energy in real-world conditions.

    Share Statistics (12-Jan-12)   FY












    Symbol ENER Revenue, $Mn 254.42 232.55 -8.6% 65.34 21.96 -66.4%
    Current price $0.57 Gross marg. 3.3% 9.2% 178.8% 15.0% -19.9% -232.7%
    52wk Range: $0.20-$4.80 Oper. margin -122.4% -232.5%
    Avg Vol (3m): 906,610 Net margin -179.6% -131.6% -26.7% -20.6% -255.1% 1138.3%
    Market Cap. 30.37M              
    Shares Outstanding 53.28M EPS, $ -5.23 -3.24 -38.0% -0.34 -0.70 105.9%

    Source:, SEC Filings.

    Investment Highlights

    ENER shares traded as much as 40% higher Thursday, extending gains to a second consecutive day.  ENER stock, along with the rest of the solar sector, was boosted on Wednesday as investors welcomed an upbeat report on Germany’s solar market. ENER shares also traded higher as the Company’s United Solar subsidiary announced the commercial launch of the world’s first solar-powered cover for the Amazon Kindle e-reader made by SolarFocus Technology Co.

    ENER shares have gained 67.1% in the last five days and 63.2% in the last month.  Year-to-date, the stock is down 87.9%.

    SolarFocus’ SolarKindle Lighted Cover uses UNI-SOLAR’s proprietary technology to charge the Kindle’s internal battery as well as the cover’s integrated reserve battery, which is used to power the LED reading light featured on the inside of the cover. The solar cells, located on the front of the leather cover, are charged from direct exposure to the sun, providing unlimited extended power to the device.

    The SolarKindle Lighted Cover will be revealed at the International Consumer Electronics Show (CES) this week (January 10-13, 2012) in Las Vegas, Nevada. The lightweight solar cover will be recognized as a 2012 Innovations Honoree in the Eco-Design and Sustainability Technologies category. The CES is hosted by the Consumer Electronics Association (CEA) and showcases the ground-breaking products and technologies influencing consumer technology.

    Chris Bala, vice president of sales for Open Solar, commented that the SolarKindle Lighted Cover is a great example of the success of United Solar’s Open Solar initiative, which allows SolarFocus, a strategic partner, to leverage the differentiation of the company’s unique high-performance, lightweight and flexible solar cells,”

    “This innovative product represents just how easily UNI-SOLAR technology can be integrated seamlessly and cost effectively into everyday applications.”

    ENER shares gained 33.2% to close at $0.57, with over 9.19 million shares exchanged. Thursday’s trading volume was nearly five times the 10-day average. The stock is currently above its 50-day moving average of $0.30 and below its 200-day moving average of $0.62.


    Financial Summary

    ENER reported total consolidated revenue from continuing operations of $22.0 million in first quarter of fiscal year 2012, ended September 30, 2011.  That compares to $65.3 million in the first quarter of fiscal year 2011, and $70.5 million in the fourth quarter of fiscal year 2011.

    For the quarter, the Company generated a net loss from continuing operations of $57.5 million, which includes a non-cash impairment charge of $34.3 million. This result compares to a net loss of $15.4 million in the year ago period and $42.8 million in the prior quarter.

    As of September 30, 2011, ENER held $130.2 million in cash, cash equivalents, restricted cash and short-term investments. This represents a decrease of $10.5 million from June 30, 2011.


    Financial Strength (12-Jan-2012)




    S&P 500

    Quick Ratio (MRQ) 2.82 1.19 0.85 0.75
    Current Ratio (MRQ) 4.03 1.70 1.13 1.11
    LT Debt to Equity (MRQ) 165.13 16.02 109.30
    Total Debt to Equity (MRQ) 174.35 20.79 148.50
    Interest Coverage (TTM) -15.91 1.93 4.49 26.12

    Source:, SEC Filings.

    Technical Analysis


    ENER is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

    The MACD for ENER currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Jan12-2012 symbol Share, $ $ Mn 2011 2012 2011 2012
    Atmel Corp. ATML 8.90 4.15B 12.36 13.69 2.27 2.28
    Ascent Solar Technologies Inc. ASTI 0.56 23.37M n/a n/a 5.31 1.87
    Broadcom Corp. BRCM 31.06 17.61B 10.98 11.29 2.39 2.28
    China Sunergy Co. Ltd. CSUND 1.57 23.46M n/a n/a 0.04 0.05
    Applied Materials Inc. AMAT 11.71 15.41B 15.61 10.27 1.75 1.60
    Semiconductor – Specialized Median       12.63 n/a 1.47 n/a
    Energy Conversion Devices Inc. ENER 0.43 29.20M n/a n/a 0.15 0.11

    Source: Thomson Financial

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