Whichever side of the political fence you sit on, the grass is green. All candidates are endorsing green energies to help fight global warming and the outrageous price of gasoline. No matter which alternative energy source you prefer, they will all benefit from the endorsement of the candidates and the ultimate new president. The subsidies are going to all the major green technologies: natural gas, bio-diesel, wind, solar, tidal and geothermal.

One concern is fiscal policies of the new president. If taxes are increased on the oil companies, that will force the gas prices even higher and might force the economy further down. Higher taxes for higher tax brackets might also affect the economy negatively since those with the expendable cash won’t have as much to feed into the market place.

The bottom line is to start investing in your favorite alternative energy field. Don’t just stick to one company, spread your investment across the field, this is more likely to yield you a net gain in the long run.

http://seekingalpha.com/article/82751-buying-green-energy-stocks-into-the-elections?source=d_email

Quest Minerals and Mining Corp. (OTCBB: QMNM) has gained 4431.25% since the market closed last Wednesday on roughly 643,000,000 shares traded.

Quest Minerals has simply been one of the best micro-cap profit gainers this year and has made some very happy subscribers over the past few days. On Thursday, QMNM announced that it is diligently working to conclude their final stages of rehabilitation so that they can move into full production at their Pond Creek location.

Initial coal production would be a major development for Quest Minerals & Mining especially as coal prices increase and the world suffers from sky high oil prices. After the stock's performance over the past few days, the world certainly has its eyes on Quest Minerals. The question, is, how high can the stock go?

QMNM gained nearly $.06 today or about 425% on close to 277,000,000 shares traded. With investors willing to pay more than $.07 per share for a stock that traded at a fraction of a penny just last week, who's to say that Quest can't advance yet again tomorrow.

I'll be curious to see what the "smart money" knows about Quest. Is their a major QMNM announcement up around the next corner, or was Quest Minerals and Mining just another flash in the pan?

If QMNM can bring its coal facility online and begin producing in the very near term, we could see this stock mature further. Either way, Quest Minerals and Mining has provided some much needed profits for investors willing to gain an ownership position at a fraction of a penny in tough economic times.

Labels: OTC: QMNM, QMNM, QMNM and stock, QMNM.ob, Quest and Coal, Quest Minerals and Mining Corp, QuestMinerals

On Thursday, Quest Minerals and Mining Corp. (OTCBB: QMNM) gained more than 200% on nearly 206,000,000 shares traded. That's not a typo, folks.

The stock surged out of the gates from an opening price of $.002 and ran all the way to its intra-day high of a penny before settling down at $.0053 by the closing bell.

Thursday's Gains Attract Friday's Investors

Despite the stock lingering in sub-penny land for some time now, the sheer volume in today's trading generated a significant amount of capital for investors and likely sounded an wake-up call to the market.

There will likely be more eyeballs watching the stock by Friday, as Internet message boards light up and investors quickly realize that Quest was the most heavily traded stock on the OTCBB Thursday and was also one of the exchange's biggest percentage price gainers.

Calm Before The Storm?

The company has been silent over the past day after making a number of positive announcements back in May. Quest announced a letter of intent to purchase the assets of Mountain Ridge Mining which include: a high wall miner and the rights to mine coal with estimated reserves of 6 million tons of Met coal.

On 4/14 Quest announced the successful completion of one of the last stages of rehab on its Pond Mine Creek property. Federal agents witnessed and approved the company's rescue plan for the mine, a key area of industry concern in the light of recent mining disasters in the U.S. Back on the 30th of April, QMNM moved one step closer to mining coal with the announcement that it has obtained the approval of their ventilation plans from the Mine Safety and Health Administration (MSHA).

On May 7, QMNM announced that it had sent notification to the Mine Safety and Health Administration (MSHA) that it intended to soon start mining coal under their recently approved ventilation plan while the rehabilitation is being completed. By the company's account. coal should already be flying out of its mine in Eastern Kentucky. While we've seen no update in this regard, maybe the smart money knows something that we don't here. With today's run up coming on zero news, just think what a coal-producing announcement could do for the stock, short-term.

Coal Reserves May Be More Valuable Than Once Thought

If Quest does in fact own proven coal reserves that they are indeed about to prospect, said reserves may actually prove to be even more valuable than today's high prices would indicate. According to energyandcapital.com:

• The peak of world production is only ten to fifteen years away;
• The peak of U.S. production is in the past;
• Reserves have been overstated by as much as 90%;
• The media are still reporting that there will be abundant supplies for another 150 years, 200 years, or more;
• The reserve numbers from Asia are particularly suspect, some dating back to the 1960s. China hasn't reduced its reported reserve numbers in 15 years, even though we know they've produced some 20% of their reserves since then;
• For the last 20 years, all major coal-producing nations that have updated their reserve numbers have adjusted them downward. And in the last 25 years, the global total reserve estimate has been cut by 60%;
• In terms of coal production, China is the largest producer, and will hit its peak "within the next 5 to 15 years, followed by a steep decline." The U.S. is the second-largest producer at 30%, and will likely peak between 2020 and 2030;
• Total global reserves: about 909 billion tons. A little more than half of that is the good, high-energy stuff, and the rest is low grade;
• About 90% of all coal in the world is in just six countries: the U.S., which has the most, plus Russia, India, China, Australia and South Africa; and
• The absolute peak of global coal production will likely be around 2020 . . . approximately ten years, maybe less, after the global peaks of oil and gas.

After a record day in the market on the 19th, the world is certainly watching this morning as Quest Minerals and Mining gears up for another session of trading.

As the buzz around coal continues to build and weekly volume picks up in Quest as a result, any news related to initial coal production could make the stock's 'thousandth of a penny' days a thing of the past. QMNM traded nearly 84 million shares and has already surpassed 274 million before Friday. Tomorrow could get quite interesting, folks.

Labels: OTC: QMNM, OTCBB: QMNM, QMNM, Quest Minerals and Mining Corp

Signalife, Inc. (Amex: SGN) appears to be primed for another run.

The stock gained more than 86% just two weeks ago, moving from a recent low of $.35 on 6/2 to a high print of $.65 on 6/6 and appears to be set to move higher yet again.

Shares continue to bounce off their low print of $.37 on 6/10 and now hover in the $.50 range on increasingly higher volume.

In a testament the stock's ability to generate some big time gains, SGN advanced more than 100% from a low of $.58 on 3/12 to a daily high of $1.24 on 3/25.
About two weeks later, shares surged to $1.50 on all-time record high volume of 3,752,062. So, clearly SGN is one to watch as volume increases for the third consecutive day and share price continues to inch higher.

Gone are the days of the "guess-a-thon" treadmill ECG system that leverages sometimes distorted raw data to return vital diagnosis. SGN has developed a revolutionary FDA recommended ECG (electrocardiography) monitoring system that is proven to produce a more accurate recording than other systems on the market today.

Many experts predict that the system will soon become the standard process for noninvasive detection of the presence of heart disease, the classification and characterization of disease, and the monitoring of cardiac function to assess change in cardiac state or effect of therapy. Despite extremely limited sales to date, many highly-regarded medical authorities are firmly behind the product and expect it to thrive in years to come.

From what I understand, over time, the ECG market experienced an unfortunate shift in focus from data integrity towards the fast processing and display of data. If the baseline data is flawed, the most complex processing in the world is useless. The worst part is, useless data in this situation could potentially cause a man with massive heart problems to mistakenly partake in a deadly game of pick up basketball after receiving a clean bill of health from his doctor.

By developing a system that captures data as efficiently as possible through new and unique methods, SGN appears to have a significant competitive advantage in the ECG marketplace. Whether or not this will translate into future sales and market share for SGN remains to be seen. However, for the time being, there certainly appears to be some potential money to be made in trading its stock.

According to a recent article in Executive Healthcare Magazine, "The disastrous result is that currently more emphasis is being put on less accurate data in the world of ECGs. The vast majority of healthcare intuitions have inaccurate data being fed into inpatient telemetry systems. Systems used for Heart trend reporting e,g. ST segments and other waveform data that are connected to ST and other alarms parameters, and often integrated with hemodynamic and other monitoring equipment."

By avoiding filters, computer averaging, or any other data masking processes, SGN's systems capture the most accurate data possible and in turn drastically reduce patient risk. This is what makes the system so attractive to medical professionals worldwide.

I'll be watching closely here over the next few trading sessions as daily volume continues to trend upwards. If the stock's past performance is any indicator of its future movement, which we think it is, we could beginning to see some strong upwards momentum in the stock over the near-term.

Labels: ECG, Inc. AMEX: SGN, SGN, Signalife

Thursday, the Centers for Disease Control and Prevention (CDC) announced the number of salmonella cases have jumped to 228 spreading to a total of 23 states.

The FDA still has no clue regarding the origin of the tainted tomatoes. Although 228 seems minute in comparison to the population of the United States, Americans should not have to worry about what they eat, at least when the meal of choice is veggies. That is why we pay taxes. So agencies like the FDA can ensure our safety against deadly diseases including salmonella.

Labels: PLBI, Salmonella Outbreak

Proton Laboratories Inc., (Other OTC: PLBI.PK), announced the formation of a partnership today with BW2 Asia, that according to the release will allow
BW2 to market Proton's functional water systems throughout Asia starting with the Philippines.

Despite a slow day in the market today on fairly significant news, PLBI shares have held most of the gains made last Friday on rather low volume.

PLBI currently dedicates its available resources towards the penetration of the following three areas:

The food processing industry;
Medical facilities; and
Agriculture industry, specifically organic agriculture

As the occurrences of bacterial outbreaks including Salmonella and Staph dominate the daily news in increasing fashion and the Green movement continues to build steam, the company's green solutions offer a timely value-proposition in its key markets and likely a great deal more.

A great deal of research of research has already been conducted both proving PLBI's specific functional water formulations and the overall efficacy of electrolyzed water in general to eliminate even the nastiest bacteria, at times quicker than dangerous chemicals such as chlorine and always less harmful to the environment.

Labels: PLBI, Proton Laboratories

Electrolyzed water is rapidly emerging as a viable green alternative to current chemical-based cleaning solutions in a plethora of industries including food processing.

In 2006, Minnesota University food scientist by the name of Joellen Feirtag confirmed what many around the world had claimed for years. Electrolyzed water formulated to become much higher in PH than in its original state, is an ideal chemical free sanitation medium for both food growers and processors that can eliminate even the toughest contaminants including Ecoli..

With waste removal and remediation fees weighing on the minds of many food related companies as energy and raw material prices surge while environmental and food safety concerns grow, a green solution such as electrolyzed water holds the potential of both profits and piece of mind for them.

Labels: Electrolyzed Water

Another major salmonella outbreak was recently announced just a little over two months after the outbreak in Southern Colorado.

Still our powerful government doesn’t have a solution that can prevent another one.

I am just appalled at our government’s inability to implement, enforce and most importantly ensure that Americans are protected from deadly bacteria. This past outbreak has affected 167 Americans in 17 states, hospitalized 23 people and taken the life of a 67 year-old cancer patient.

To me this is unacceptable. A cancer patient that was already battling for his life is now dead because his weak and battered immune system couldn’t fight against the intestinal bacteria that he contracted from eating pico de galo from a Mexican restaurant in Texas.

Companies like Sanyo, Proton Laboratories (PLBI.PK) and EAU Technologies (EAUI.OB) have viable green solutions to defend against deadly bacteria. Their technologies take water and re engineer it through a process called electrolysis. In turn their solutions, have efficacy rates as high as 99% in regards to killing bacteria that includes Salmonella, E. coli, Streptococcus, Staphylococcus, Campylobacter, MRSA and other threats to our air, water and food supplies.

So, if the aforementioned companies have developed a means to eliminate deadly bacteria with minimal or zero use of toxic chemicals, then what is taking our government so long to implement them into our agriculture system? Not only would it keep Americans out of hospitals, it would save farmers and distribution companies millions of dollars. And isn’t that one of the FDA’s main goals to help minimize the health risk to Americans?

This technology has the means to tackle a growing problem in the United States and it can be done with out chemicals and no residual effects to the taste or overall presentation of the produce. However, until our government can remove its head from its sphincter we will continue to see salmonella outbreaks continue for years to come.

Labels: EAU Technologies, EAUI, Electrolyzed Water, FDA, Green Chemistry, PLBI, Proton Laboratories, Proton Labs, Salmonella Outbreak, Sanyo

Friday's gains of 130.77% ($0.03) demonstrate that Proton Laboratories, although well below its all-time high share price of $2.49, is building some momentum in the market. The company is currently seeking financing of $1 Million with an aggregate line of equity of $6 Million in order to facilitate bringing their mister product to market.

In recent weeks, PLBI has announced results from Hill Top Research backing the efficacy of its electrolyzed water and its effects on MRSA (Staph) along with its licensed and proprietary cooling tower process that utilizes the company’s advanced electrolysis technology. As we hope for more news in coming weeks lets take a look at why now may be a most beneficial time to consider taking an ownership position in PLBI.

The company began trading back on January 14, 2004 at a price of $0.85. Within just a little over nine weeks, PLBI saw gains of 188%, hitting $2.45, just four cents below its all- time high. Since then, stock price has fallen dramatically, hitting as low as $0.013 on June 6, 2008 on volume of a measly 6,000. This decrease is attributable to the company’s first line of equity of $10 Million from EFUND SMALL CAP FUND II, LP that gave the equity line investor the ability to convert stock at a discounted rate, which ultimately diluted the value of the stock.

Friday’s gains are promising however, because although PLBI is trading at just $0.03, the market has taken notice of their technology and its benefits to our environment, a topic that is all over the news and on the top of presidential candidate’s agendas.

PLBI’s efforts now appear to be focused on securing financing for its mister product, which in return will give them the ability to expand operations and enter into additional markets of interest as their technology becomes recognized as a leading, affordable solution to a growing global problem.

If PLBI can't secure critical funding for its mister product, share price will likely continue to hover in the low penny range and potentially force the company to take on unfavorable equity financing to fund operations.

With this in mind, Proton Laboratories has several key hurdles to overcome before achieving potential greatness, but management is determined to fix them and doing so will be a huge help to their overall success. This being said, my recommendation is to keep a close eye on PLBI over the next few weeks because history tends to repeat itself and any positive news should boost the stock after Friday's surge.

Labels: 130%, PLBI, Presidential Candidate, Proton Laboratories

At the current price of $.01, we feel that Marmion Industries Corp. (OTCBB: MMIO) is exhibiting tremendous upside potential. Trading in the stock has cooled off a bit in recent weeks with no news flowing out of the company.

However, after a recent conversation with MMIO's CEO and a peek at the company's recent quarterly filing, we are optimistic regarding what the future holds for Marmion Industries (trailing 5-month revenue comparison chart to right)

In addition to Marmion's consistently improving financials and recent expansion into Louisiana , the company's premier customer continues to experience record growth. MMIO has also recently initiated its first ever concerted sales/marketing program by taking out an ad in Offshore Magazine, which was in turn distributed for free at the "Worlds Largest Offshore Oil Technology Conference" last month where executives were in attendance.

The company's biggest customer, Powell Industries (NASDAQ:
POWL), saw second quarter profits double and in turn raised its full year 2008 profit and sales outlook. POWL accounted for 30% of Marmion's 2007 revenue and will likely send even more business the company's way once its new manufacturing facility goes online in August.

Powell is currently segmented into two groups: Electrical Power Products and Process Control Systems. The former, which according to the company's annual report logged $546.1M in 2007, the lion's share of corporate revenues, serves a deep base of customers in Marmion's core target market making the two entities a perfect match.

Target Market: "operators of oil and gas pipelines, refineries, petrochemical plants, and electrical power generators; public and private utilities; operators of co-generation facilities; mining/metals companies, pulp and paper plants operators, transportation systems operators, and governmental agencies and other industrial customers" Yahoo Finance, Business Summary

Although expanding and diversifying the customer base is a key strategic goal of the company, since Powell does bring in more than $500M a year in sales, MMIO can clearly benefit from a deeper relationship with its top customer going forward.

According to Offshore Magazine: "The 2008 Offshore Technology Conference attendance was 75,092, report organizers. This tally is up 11% from last year".

For a company that has relied on word of mouth thus far to drive growth, the conference is a major step in the right direction. The implications for Marmion (3yr. rev chart to left) are huge here if just one long-standing relationship is forged. Particularly since MMIO did rely on only 3 customers to generate 64% of revenues in fiscal '07.

According to the company's recent annual filing: "Our long-term plans for growth include continued expansion of our industrial base into Louisiana. We have obtained the necessary licenses in Louisiana and during the first quarter of 2008 we received our first orders from customers in Louisiana."

Louisiana is the leading crude oil producer and the second largest producer of natural gas in the U.S. The state's oil & gas industry generated a reported $70.2 billion in 2006 sales and lays claim to nearly 90% of the nation's offshore rigs. In regards to petrochemical activity, the state has nearly 90 chemical plants and is home to roughly 70 petrochemical manufacturers.

So clearly, the region represents a prime opportunity for Marmion in addition to its home region of Houston, the "energy capital of the world". Already holding both Mechanical and Sheet Metal Contractor Licenses in the state of Louisiana (Lic. No. 44001), the company appears ready to prospect growth in a new and potentially extremely lucrative market

Despite a lack of communication from the company in recent weeks, Marmion's first quarter financial report provides us with reason to believe things are plugging along nicely at MMIO:

Here are some of the highlights from MMIO's recent Q as we see it:

• Q1 Revenue increased by more than 80% from Q4 '07;
• Income from operations was $140,514 compared to a loss of (45,144) during Q1 '07;
• Net loss of (75,895) compared to a net losses of ($517,861) and ($427,000) for the first and fourth quarters of 2007 respectively;
• Revenues increased approximately 15.6% for the three months ended March 31, 2008March 31, 2007; from the three months ended
• Approximately 33% of revenues were attributable to equipment for the petrochemical industry and approximately 67% were attributable to the commercial division;
• Gross profit margin improvement of 8.7% to 24.5%;
• Total Cost and Expenses increased approximately 6%;
• G&A expenses decreased approximately 3.5% in the three months ended March 31, 2008March 31, 2007; from the three months ended
• D&A expenses increased approximately 37%; and
• Net cash used in operating expenses for the three months ended March 31, 2008 was $443,174 as compared to $147,286 for the three months ended March 31, 2007.

Here's a quick look at MMIO's Financial Highlights from 2004 - 2007:

• Produced revenues with a CAGR of 53.27%
• Boosted EPS by $0.45 to -$0.03
• Improved Profit Margin by 231% from -284% to -53%
• Maintained an average Gross Margin of 19.25%
• Successfully sustained an average GMROI of 331%
• Here are a few of Our 2008 - 2012 Projections:
• Revenue Streams With a CAGR of 29.6%;
• Positive Net Income of Nearly $90,000 in 2010;
• Profit Margin of 8% by 2012; and
• EPS of $0.0241 by 2012.

As business trends improve for Marmion and the company nears completion of a much larger manufacturing facility, 2008 is shaping up to be another record year.

Momentum in the stock appears to have been halted by a lack of corporate announcements. . . But, on the flip side, selling pressure has subsided lately, so any positive news over the next few weeks could get shares back on the right track. We suggest watching this one closely. We've all seen MMIO share price double, triple and more than quadruple in the past.

Labels: Marmion and HVAC, Marmion Industries, Marmion Industries Corp., MMIO, MMIO and HVAC, OTCBB:MMIO, Powell Industries

Proton Laboratories Inc. (OTCPK: PLBI) shares gained more than 130% Friday on volume of 70,000.

PLBI engages in the design, manufacture, marketing and sale of functional water systems in the United States.
The company has taken a simple but well-established process of electrolytic ion separation that results in the byproduct of functional water.

The term “functional” has been applied to many mediums thus far and refers to the added benefit aside from the products original intended purpose. The company has taken this concept and introduced it to water. Based upon this new classification, water processed through an electrolytic ion separation process gains properties that bring functionality to itself. Delivering a new medium that can eliminate various strains of bacteria, virus, fungi, spores or communicable diseases and drinking water with incomparable hydrating properties than any sport drink available today.

PLBI has been able to take this technology and apply it to a wide range of industries from agriculture to the medical field that has unprecedented beneficial impacts on humanity and the environment .

PLBI also formulates intellectual properties under licensing agreements, supplies consumer and commercial grade products, consults on various projects utilizing functional water, and educates researchers at prestigious universities on the benefits of functional electrolyzed water. The company was founded by the CEO and CFO Mr. Edward Alexander in 2000 and is based out of Alameda, California.

Labels: PLBI, Proton Laboratories

Despite a lack of communication in recent weeks, Marmion's first quarter financial report provides us with a glimpse into the company's recent performance.

Here are some of the highlights from MMIO's recent Quarterly filing:

• Q1 Revenue increased by more than 80% and 15.6% over Q4 and Q1 '07 respectively
• Income from operations was $140,514 compared to a loss of (45,144) during Q1 '07;
• Net loss of (75,895) compared to net losses of ($517,861) and ($427,000) for the first and fourth quarters of 2007 respectively;
• Approximately 33% of Q1 '08 revenues were attributable to equipment for the petrochemical industry and approximately 67% were attributable to the commercial division;
• Gross profit margin improvement of 8.7% to 24.5% over Q1 '07;
• Total Cost and Expenses increased approximately 6% over Q1 '07;
• G&A expenses decreased approximately 3.5% in the three months ended March 31, 2008 from the same year period in '07
• D&A expenses increased approximately 37% over Q1 '07; and
• Net cash used in operating expenses for the three months ended March 31, 2008 was $443,174 as compared to $147,286 for the three months ended March 31, 2007.

Labels: Marmion Industries, Marmion Industries Corp., MMIO

Despite facing potential de-listing, Zila Inc. (NasdaqGM: ZILA) shares gained $.12 or nearly 43% during regular trading before jumping another $.07 after hours for a final print of $.47.

Volume of 1.7 million shares traded was the most since late April and news that the company has favorably re-structured its most crucial loan agreement was warmly embraced by investors.

Zila Inc. is best known for its flagship ViziLite^® Plus product which is the first and only adjunctive medical device cleared by the FDA for use in a population at increased risk for oral cancer. ViziLite ^® Plus net revenues increased to $3.2 million and $6.2 million for the three and six months ended January 31, 2008, respectively, an increase of 136.3% and 275.7% from the same periods in the previous year.

With approximately $5.9 million of cash and cash equivalents and $8.3 million of working capital on hand to fund operations, the company may still need to seek additional financing over the near-term to ensure the future success of its core product line. The favorable modification to the EBITDA and minimum cash balance covenants of the company's loan agreement with holders of its senior secured convertible notes should help immensely. ZILA won't have to raise capital to pay back loans and can focus solely on marketing ViziLite^® Plus worldwide.

Today's gains could exhibit the market's confidence in Zila's ability to grow revenues over the next 3 to 6 months through sales of ViziLite without the burden of said restrictive minimum cash balance requirements or the risk of further share dilution.

With an earnings call scheduled for 6/9, we will soon see how rapidly core product sales are growing. The next four quarters should be crucial to the future success of the company as its landmark product is now fully launched in both the U.S. and regions of the European Union including the UK. Zila's marketing and selling expenses increased more than 100% during the six months ended January 31, 2008 compared to the first half of '07 for an increase of $5.5 million. So, timely is clearly of the essence with big money being spent on creating awareness for ViziLite^®

On a very positive note for Zila Inc., in December 2007, the U.S. Department of Veterans Affairs awarded Zila a five-year contract to market ViziLite^® Plus to 58 Veterans Administration dental clinics and 154 Department of Defense dental clinics. This should certainly help to build brand recognition for ViziLite going forward.

Labels: NasdaqGM: ZILA, ViziLite®, Zila Inc, Zila Inc. (NasdaqGM: ZILA)

Quantum Technologies (NASDAQ: QTWW) shares are up nearly $2.30 since late January thanks in large part to record oil prices and the world's increasing focus on sustainable energy. Despite the recent run-up and massive increase in investor interest as of late, I'm still not a buyer at current levels.

Given the company's current fundamentals and the fact that the hydrogen movement - a key focus of QTWW - has yet to really gain momentum, I'm still viewing this as more of a story stock. A compelling story, sure. But still a story nonetheless and perhaps not quite a $3 story.

Simply put, this is the best, small cap growth story that I have come across in 2008. From the development of hydrogen combustion engines used in the next generation of alternatively fueled vehicles to 25% ownership of a major global solar module manufacturer, QTWW is a fully integrated alternative energy company.

As oil prices surge, the market has left no stone uncovered in its search for alternative energy plays and QTWW appears to be a favorite.

Quantum boasts a list of clients and partners that now includes: NASA, Shell, GM, DailmerChrysler, Toyota, BOSCH, and Lockheed Martin. With a strong focus on hydrogen power, QTWW is quickly gaining worldwide recognition for its ability to develop technologies that make hydrogen a more efficient alternative to current energy sources including oil.

Historically, storage problems have been the main roadblock preventing hydrogen power from being mass commercialized in transportation-related applications. From both an economical and safety perspective, the element brings with it a unique set of challenges in comparison to other fuel sources. Now partnered with Boeing and the U.S. Department of Energy to advance hydrogen storage capabilities, QTWW appears to be tackling the problem head on and helping make H a viable power source.

According to the Earth Policy Institute in Washington, DC "Photovoltaic production has been doubling every two years, increasing by an average of 48 percent each year since 2002, making it the world's fastest-growing energy technology".

In a move expected to yield $600 million in sales for both company's Quantum's 25%-owned German partner - Asola Advanced and Automotive Solar Systems GmbH - announced plans earlier this month to soon triple annual solar module manufacturing capacity to 45 MW (megawatts peak power). The agreement is already bearing fruit.

Last Tuesday, Asola announced a $17M contract from Sunworx GmbH. The $4.5M in revenues (25% of the deal) for QTWW could prove to be just the tip of the iceberg in regards to what the aforementioned relationship yields. Already benefiting greatly from an entrenched position in Germany - the world's fastest growing major PV market during 2006 and 2007, Asola is an ideal partner for QTWW as the company looks to diversify its alternative energy portfolio.

Financials are looking better as well. Here a few highlights for the company's third quarter filing:

* Total revenue in the third quarter of fiscal 2008 was $7.1 million compared to $2.3 million in the third quarter of fiscal 2007, a net increase of 209%.
* For the nine month period ended January 31, 2008, Company's consolidated revenues ($16.8M) were up 15% on from the corresponding period of 2007.
* Consolidated operating loss decreased from $5.8 million in the third quarter of fiscal 2007 to $3.8 million in the third quarter of fiscal 2008.
* Product sales for the Quantum Fuel Systems segment increased $1.7 million, or 213%, from $0.8 million in the third quarter of fiscal 2007 to $2.5 million in the third quarter of fiscal 2008.
* Product sales for the Quantum Fuel Systems segment increased $1.7 million, or 213%, from $0.8 million in the third quarter of fiscal 2007 to $2.5 million in the third quarter of fiscal 2008.
* Net loss decreased from $21.6 million, or $0.33 a share, in the third quarter of fiscal 2007 to $1.4 million, or $0.02 a share, in the third quarter of fiscal 2008.
* Net loss decreased from $124.3 million, or $2.05 a share, in the first nine months of fiscal 2007 to $80.3 million, or $1.06 a share, in the first nine months of fiscal 2008.

However, there are still a number of unfavorable factors associated with the company:

* The discontinued operations of the Tecstar Automotive Group business segment generated losses, net of tax effects, of $66.1 million in the first nine months of fiscal 2008.
* QTWW has stated that Future sales of substantial amounts of their common stock could affect its market price.
* The success of the business depends on the growth of hybrid and hydrogen based vehicles and the solar industry.
* Revenue is highly concentrated among a small number of customers.
* Negative EPS and P/E ratios, High P/B ratio vs. competition.
* QTWW may never be able to introduce commercially viable hydrogen products and hybrid propulsion systems.
* Long term solar cell purchasing agreement could result in higher than expected inventories and losses if market rates and demand drop.
* Documented history of operating losses and negative cash flow that may continue into the foreseeable future.
* Heavy reliance on GM partnership.

The company announced recently that it is conducting initial tests and trials on many aspects of its Fisker Karma (photo to left). The Karma is a plug-in hybrid that can travel 50 miles a day when charged every night and can reach top speeds of 125, continuously, in Sport Mode. The vehicle is being developed through a joint venture between Quantum and Fisker Automotive Inc.

With more than 80% of daily commuters traveling less than 50 miles a day, the Karma represents an ongoing fundamental shift in the auto industry towards Green vehicles and a major potential change for a U.S. economy currently plagued by exorbitant fuel prices, sky high inflation, and a volatile credit market.

While the $80K price tag may be a bit hard to swallow for many consumers, the concept behind the vehicle is not. With a life expectancy of 10 years and the ability to conceivably be refueled just once annually, the Karma is already gaining traction in the auto market, even prior to models becoming available.

From The Release: "Fisker Automotive is preparing to deliver its first Premium Edition vehicles by fourth quarter 2009. Currently, Fisker Automotive has received more than 500 orders for the Fisker Karma since its 2008 debut at the North American International Auto Show (NAIAS) in January. Fisker Automotive will reach a full production of 1,250 vehicles per month by the end of 2010. The starting estimated MSRP for the Fisker Karma will be approximately $80,000 or EURO 80,000"

I was reluctant to hit the buy button in both the $.70 and $1.30 ranges and given the company's laundry list of risk factors and potential need for financing going forward, I'm still staying away for now, but watching the story closely nonetheless.

Do I thihk QTWW has the makings of a great company? Yes. Do I think that is a great company today? No. QTWW just goes to show you that even in today's rough and tumble economy, there's still potential for a proverbial "5 bagger" in the sub-dollar range, even on less-than-stellar fundamentals. The market appears to be more than willing to pay for the potential here and some analysts have even set their 12-month price targets as high as $4.00. I however, am not.

Labels: QTWW, Quantum Technologies