With its flywheel energy storage system aimed at the efficiency of the electric grid, Beacon Power Corporation (NASDAQ: BCON) is one of the players in electric utilities that’s really getting a bounce back today. That demonstrates strength of support by both “Faithful” shareholders and new buyers…
The Energy Sector appears to be one of the most resilient groups in the recent sell off turmoil and when the dust settles; could prove to be a leading group for the bulls going forward. With truck manufacturers receiving new energy efficiency regulations from the White House this week, energy independence and efficiency could become the ‘new rage’ and that’s where Beacon Power Corporation (NASDAQ: BCON) would fit well into an energy allocation in a portfolio.
The Company’s Smart Energy Matrix provides stored energy which can be used to balance and level out any drops or disruptions in a given sector of an electrical grid. Yesterday, the Company was awarded a $5 grant to open up a flywheel operation in Pennsylvania. Last month Beacon Power Corporation (NASDAQ: BCON) opened a 20 Megawatt facility in Stephentown, New York. The plant is the largest energy storage facility currently operating in North America.
Looking at the stock, I think it’s undervalued at its current price. This was a $3 stock at the beginning of March. The Company has virtually no short sellers to hold it down and as you can see is selling flywheel systems; with positive double digit sales projections quarter over quarter.
This week Beacon Power Corporation (NASDAQ: BCON) posted its Q2 numbers and revenues increased 216%, from $166,000 in Q2 ’10 to $525,000 in the current Q2. Even the EPS this time round, a loss of 18 cents, was significantly better than the 28 cent loss in Q2 ’10.
If the Company can keep up its sales campaign, both in the U.S. and globally, I think there’s a potential for big growth ahead. A ‘value hunters’ dream at a buck.
I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.