Renewable Energy and Solar Stocks Update: ZBB, NGLPF, ETX

ZBB Energy Corporation (AMEX: ZBB), Nevada Geothermal Power (OTC: NGLPF) and Etrion SA (TSE: ETX) are three small cap renewable energy or solar stocks that have made recent announcements or have earned promotional publicity that could cause their stock prices to rise – at least for the short-term. Of course, small cap renewable energy or solar stocks like ZBB, NGLPF and ETX always seem to receive their share of hype given that the industries they are in have the potential, at some point, to revolutionize how we live. However and at this stage, its also important to remember that such stocks often have little to no profit, let alone revenues, and depend upon government subsidies and tax credits. Hence, here is a closer look at ZBB, NGLPF and ETX to help you determine if any of them are worth further due diligence:

• ZBB Energy Corporation (AMEX: ZBB) is a designer, developer, manufacturer and marketer of distributed energy storage solutions (under the ZESS POWR) that are based upon the company’s proprietary zinc-bromide rechargeable electrical energy storage technology. ZBB Energy Corporation has just announced that they have received notice from the Internal Revenue Service (IRS) that the IRS has certified a green energy project of theirs for a $14,685,000 Advanced Energy Manufacturing tax credit but last week, ZBB also announced that they will raise approximately $2.3 million in a registered direct stock offering at $0.82 cents a share. ZBB Energy Corporation recently fell 3.78% to $0.890 and has a 52 week trading range of $0.41 to $1.59 a share.
• Nevada Geothermal Power (OTC: NGLPF) is a renewable clean geothermal energy stock that acquires, explores and develops geothermal resources mainly in the Western USA in the states of Nevada and Oregon. In Earlier in June, Nevada Geothermal Power announced the purchase of Iceland America Energy’s solar assets in California’s Imperial Valley while this week, market maker Canaccord Genuity rated NGLPF a buy in a report (“Opportunities in the ‘Overlooked’ Renewable Power Sector”) that used discounted cash flow analysis (DCF) to analyze the company. For 1Q2011, Nevada Geothermal Power generated $6.3 million in revenue - a 9% increase over 4Q2010 and a 110% increase over 1Q2010. NGLPF also lowered its net loss by 75% from $5.7 million to $1.4 million. Nevada Geothermal Power recently fell 5% to $0.19 and has a 52 week trading range $0.19 to $0.89 a share.
• Etrion SA (TSE: ETX) is a developer, builder and operator of solar power plants and currently owns 47 megawatts (MW) of solar energy capacity in Italy. ETX is listed on the Toronto Stock Exchange as well as the NASDAQ OMX Stockholm exchange. Etrion SA recently announced plans to build a 2.6 MW solar power plant in the Lazio region (near Nettuno) of Italy. In addition and for 1Q2011, Etrion SA generated $7.3 million (EUR 5.2 million) worth of solar electricity revenue but reported a net loss of $1.5 million verse a net loss of $3.5 million for 1Q2010. ETX had no revenue for 1Q2010 as it first began earning revenue form the sale of solar electricity in June 2010. Etrion SA recently closed at $0.70 and has a 52 week trading range of $0.59 to $1.05 a share.

The bottom line: Renewable energy stocks NGLPF and ETX are starting to warrant a closer look as they narrow their losses while ZBB, given the tax credit they may receive in an industry heavily dependent on government support, could also warrant a closer look.