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Using
Their 'Brain', SMGY Enters RV Market |
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 You
can make a living providing people what they need, but you can make a
fortune providing them things they want. Let's face it - modern
consumers love bells and whistles, whether they're needed or not. The
more the better. That's why I think (and have thought for a while now)
Smart Energy Solutions Inc. (OTCBB:
SMGY) is also a smart trading idea. They've come up with the
coolest little gadget, which I believe is going to make a lot of money
for the company and its investors.
That's
probably not news to anybody who's been following the emergence of their
'Battery Brain' product into the automotive world. However, today's news
is a perfect reason to remind everyone how the marketing effort has recently
gone full throttle.
The
latest word is that MITO Corporation has been signed as an exclusive dealer/distributor
for Battery Brains within the recreational vehicle (RV) world. MITO
is a well-known supplier of aftermarket auto technology, but they've got
a lot if 'ins' with the manufacturing side of the RV industry too.
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Good
Business To Be In, 'Cause Business Is Good |
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 I
don't know how many of you know someone who's really into their RV, but
there's one common trait among the few RV owners I know - they're all
infatuated with the gizmos and technology available to them. Whether
it's for fun, convenience, or safety (like the Battery Brain), the 'newest
and best' is what these folks seem to clamor for. That's why I think Smart
Energy's battery-saving device is going to be a big hit with this crowd.
That
just makes the next numbers even more staggering.
Remember
how many cars we said there were currently in use on a global basis? More
than 60 million. Naturally, most of those are sedans, small trucks, and
general passenger vehicles. A fair amount of them are also shipping/delivery
trucks. Though not 'uncommon', I don't think anybody would disagree that
RV's make up only a fraction of all the vehicles on the road right now.
As it turns out though, there were a heck of a lot more than I would
have guessed.
The
global grand total is....9 million RVs currently in use. The total number
of new ones manufactured in 2005 was 384,000, which produced industry-record
revenues of $14 billion. The numbers are also getting bigger every
year. By how much? In just the first half of 2006, 225,000 RVs were
shipped - a 14.3% improvement over the first six months of the previous
year. I couldn't find more current numbers, but I suspect the trend
is still intact.
 Better
still, industry experts also expect this kind of growth to continue in
the future. And to tell the truth I believe they're right - not just because
of the current trend, but because of the unprecedented demographic dynamic
we're seeing across the globe. Though it's already started to a large
degree, the baby-boomer generation is cranking out new retirees left and
right. More are on the way.....a lot more. These people have the
means and the time to travel to their heart's content, which is great news
for RV manufacturers, and in turn, great news for Smart Energy.
And
that 'new' market is a particularly big deal in relation to today's announcement.
MITO
actually has relationships at the factory level. That means
the Battery Brain has a shot at becoming 'original equipment', or OEM.
Needless to say, it's much easier and much faster to sell mass quantities
to the factories than to the individual retailers and dealers.....and it's
ridiculously more efficient than selling straight to the consumer.
So
let's just do a little math here - conservative, as usual. Assuming there
are roughly 400,000 new RVs manufactured every year, and assuming that
MITO can achieve a 'new' market penetration of 10% (modest, in my opinion),
that translates into about 40,000 Battery Brains annually being used as
OEM for RVs. That's not colossal relative to the millions and millions
of cars on the road, but it's huge considering Smart Energy sold fewer
than 70,000 Battery Brains last year, when they were just getting things
going.
I estimate
those recreational vehicle OEM sales could tally up to more than $1 million
per year for Smart Energy - which is a very big deal for this young company.
And
that doesn't even count the other 9 million RVs already in use; they're
eligible for Battery Brains too.
 My
story remains the same when it comes to Smart Energy's chart. Based on
the continued growth of their distributor and dealer relationships,
I think this young company is on the verge of unprecedented sales growth.
And, I think the stock is more than ripe to reflect such a top line
increase.
Moreover,
I'm seeing subtle clues a move in the stock's trading level may be soon.
The last time we talked about it, I pointed out how SMGY has been making
higher lows ever since the washout day on June 25th (when the stock sagged
all the way down to 46 cents before closing at 58 cents for the day). That
higher low argument still stands.
What
I could NOT say the last time we talked about it but I can say
now is this - SMGY is starting to work on higher highs. For most of
July, the 57 cent mark was a ceiling. We got to 58 cents on August 1st,
and again today. Both of those highs were also above the 100 day moving
average line. All the while, we've seen shares continue to make higher
lows. Throw in how we're starting to see bullish divergences and crosses
of the short-term and long-term moving average lines, and I'd say we're
incredibly close to seeing this thing launch like a rocket. I for one would
rather be early to the party, rather than chase it down later.
Here's
the press release.
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Smart
Energy Solutions' Distributor Agreement with MITO Corporation Expected
to Significantly Increase Penetration of OEM RV Market
POMPTON PLAINS,
NJ, August 8, 2007 - Smart Energy Solutions, Inc. (OTC
BB: SMGY), developer and manufacturer of the innovative Battery Brain(tm)
product line of vehicle and marine devices, has signed an exclusive Distributor
Agreement with MITO Corp., based in Elkhart, Indiana. MITO will be representing
SMGY primarily in the Recreational Vehicles (OEM and Parts & Service)
and audio markets. With nine million RV motorhomes worldwide, the industry
projects in excess of $12 billion in annual sales activity.
"MITO Corporation
was the obvious choice to exclusively represent Smart Energy Solutions,
Inc. and Battery Brain in the recreation vehicle OEM market segment. Their
experience and high quality standards coupled with their deep rooted and
broad based relationships within the RV industry greatly increase Battery
Brain's potential for OEM integration," said Jason Blalock, SMGY's Director
of Sales and Marketing, North American Auto Dealers. "MITO is unique in
that they offer factory, OEM and dealer installation capability, along
with parts and service sales and retro-fit/upgrades."
"MITO Corporation
is proud to be partnered with Smart Energy Solutions, Inc. and Battery
Brain. This intelligent device offers MITO Corporation yet another product
to add to its ever expanding line of high quality electronics offerings
to the RV OEM marketplace," said Rod Hire, Product Manager, MITO Corporation.
MITO Corporation
is a distributor of aftermarket products which include: Gentex Auto-Dimming
Rearview Mirrors with Compass and Outside Temperature, HomeLink Garage
Door Openers, BlueTooth Hands Free Kits by BlueConnect and Tellphone, AutoGuard
Hood Latch Protector, Aerielle AudioBUG Wireless FM Transmitter, Navigation,
Muth Turn Signal(r) Mirrors, Back Up Cameras and Monitors, Suspension Theater
and Suspension Theater Express, Call Capture Cell Phone Booster, basically
all types of cool accessories to add to your Vehicle in the 12 volt or
mobile electronics field.
About Smart Energy
Solutions
Smart Energy Solutions,
Inc. (OTC BB:SMGY) is
the sole owner of the Battery Brain line of vehicle accessory products.
The company is headquartered in Pompton Plains, NJ, with operations in
Zhuhai, China, Petach Tikva, Israel and Pompton Plains, NJ. Visit http://www.smgy.net.
Forward-Looking
Statements:
Actual results
could differ materially from any forward-looking statements contained in
any Smart Energy Solutions press release. All statements made in this press
release are made as of the date of the release and could change due to
unknown risks and uncertainties.
Contacts:
Press Contact
Bruce G. MacDonald,
Liebler!MacDonald, 248-233-8062, bmacd@liemac.com
Investor Contact
Ed Braniff, Smart
Energy Solutions, 973-248-8008, edbraniff@smgy.net
Paul Holm, H.L.
Lanzet, Inc - 212-888-5470, lanzet@aol.com |
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Got comments, questions or suggestions?
Send 'em on over: Email
the Editor
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or inquiry, please send it to our physical address:
TGR Group, LLC
4653 Carmel Mtn Rd Suite 308 #402
San Diego, CA 92130 |
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| Titan
Global - Oh So Close |
| Even
semi-regular readers will recall how Titan Global's (OTCBB:
TTGL) recent strength has merited more and more attention, but rightfully
so - it looks to me like the chart is right on the verge of an even bigger
breakout (as if the recent move from July's low of 95 cents to the current
price of $1.36 wasn't impressive enough).
I drew
two lines in the sand - the minor one was March's peak of $1.49, but the
big one I wanted to see crossed was $1.40, where TTGL bumped into a headwind
a few times in recent months.
Between
then and now, $1.40 was temporarily breached; Tuesday's high was $1.43,
though the close came in at $1.37.
I would
have preferred it if TTGL got and stayed above $1.40, but I still think
this is a good sign. Rather than harsh pullbacks like the ones we saw the
last few times the $1.40 area was reached, we're seeing the stock hang
in there - within striking distance.
If
you don't have a TTGL position yet, or if it's at least not on your radar,
I'd seriously consider it. I do think it's set to take a break for a couple
of days, perhaps resting somewhere near its 10 day moving average line
(at $1.31). Past that though, I can see that short breather serving as
a wind-up for the next bullish leg.
To
see the chart, click
here. |
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| Clearly
Canadian's 'Alternative'? Yeah, Right. |
| I've
mentioned this a few times already, but the company has come through in
the meantime and validated my opinion. When Clearly Canadian (OTCBB:
CCBEF) first hit the scene more than a decade ago, you could safely
call it an alternative beverage. Water - even sparkling flavored water
- was relegated to the corners of the few stores that would carry the line
at all, though the small niche of consumers that wanted it seemed to be
able to find it just fine.
But,
over the last 15 years or so, the old 'alternatives' seem to have become
the new 'mainstream'. Clearly Canadian is a prime example. How so? I've
previously mentioned the grocers and convenience stores that added at least
some of Clearly's product line, but two more big ones have come on board
within the last few days.
Whole
Foods Markets' Canadian outlets will soon be exclusively
marketing a new Clearly Canadian line of dried fruits and nuts, under
the brand name of 'Country Mile'. Just a few days ago we learned Wal-Mart
of Canada was going to start offering
Glengrove Organic's products - one of the new lines added thanks to
the acquisition of DMR Food Corporation back in February. It's hard to
label Wal-Mart an 'alternative', while Whole Foods Markets aren't exactly
obscure anymore either.
And
the number of these new product placements is getting very lengthy.
I have
to believe Clearly's revenue figures are going to show some massive improvements
over the next couple of quarters - much more so than many people may realize.
If they do as well as I think they will based on all these new relationships,
I've still got a hunch the stock could be a fast-and-furious mover.
Check
out all the recent news, and our coverage of it, by clicking
here. |
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