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Great to have your input, Dr Dread. I agree with your take on this company, and you don't sound like a careless investor. When I first started buying shares of Vu1 I think I even bought some for over a buck. But then I sold.
Almost a year ago, just when I was really zeroing in on this company, they came out with, what appeared to me to be, a horrible financial report. I could already hear the shuffling of the bankruptcy forms. I freaked and sold my shares. I hate losing money. A couple of weeks later they announced their financial deal with Full Spectrum. I decided I acted rashly and so I quickly jumped back in (actually got back in at a lower cost average and have been able to lower that average since). So now I take these financial reports with little more than a grain of salt. Believe it or not, their financial situation today is considerably better off than it was a year ago. Such is the nature of a startup penny stock. I'm more anxiously awaiting news regarding their prototype and less concerned with their financials at this point in this venture.
There are primarily 2 issues that sold me on this company: 1) the technology and its market potential, and 2) the way these folks run their company, which gives me confidence that is rare in a penny stock. They run this little affair as if they are a major lighting company, very cautious in what they announce publicly and are very tight and prudent on how they spend what money they have. They have a great sense of their priorities. Though there are no guarantees when it comes to spec plays (or any other plays for that matter), the one thing I don't have to worry about with Vu1 is making bad investment decisions based on some BS that is put out their by their marketing department, or worse, a hired PR company with a vested interested in pumping this stock. So what we see is what we get, and that's a very big plus when it comes to investing in penny stocks.
I'm confident that we will see production of their R30 sometime this year and that will be a big, and lucrative, deal. In my opinion, they are in the make or break phase of this company. Within the next few months we'll know if we're going to lose a lot of money or gain a lot. I'm betting on the latter. Because once they have the product and the lighting industry sees that this product can be manufactured at a reasonable price, either some deep pockets will buy Vu1 out, or there will be investment firms (and possibly the government?) lining up to get a piece of the action. At that point the worrying will be over.
Vu1 finally files their 10-K, AND...
no surprises. It's exactly what I figured. A lot about ongoing concerns and the need for additional financing, but they do have deals in place where they can go for that additional financing, though I think they'd like more options. The target for their first limited production run is 3rd quarter this year. The only question that I had that this filing answered for me was whether or not their prototype is in testing yet. It is not. As I've stated before, what I'm really waiting for is news, particularly regarding the prototype, but right now any positive news would be welcomed.
EIGH doesn't hold much promise. If it hangs in there it may make you pennies on a share, but not much else. Of course, if you own enough shares that could be significant. It seems to be stuck in a channel with no signs of it breaking out any time soon and since the company doesn't offer anything different than what a thousand other such companies do, I fail to see the attraction.
As far as Vu1's management needing to be more aggressive, I'm not sure I understand what you're saying. More aggressive doing what? They're constrained right now due to a lack of cash, but the money they are spending is going toward the development and testing of their prototype. We should get their 10-K today or tomorrow. I don't expect it to tell us much that we don't already know, but one never knows. Vu1 often uses their SEC filings to inform the public on issues that could otherwise come out in PRs. I suppose they do that to save money, since the public listings of SEC files are free.
Here's a link to a very good article comparing the 5 major lighting technologies, including ESL. Conclusion? Right now ESL looks like the best choice. I sent this to the front office and they were thrilled. If they can get permission from the author, they are going to use it for a blog entry:
http://www.gaiadiscovery.com/latest-planet/analysis-energy-efficiency-of-domestic-lighting-halogen-cfl.html
Vu1 has filed for an extension on their 10-K. Seems to be a quarterly habit of theirs: http://sec.gov/cgi-bin/browse-edgar?company=VU1&CIK=&filenum=&State=&SIC=&owner=include&action=getcompany
So now we have up to an additional 15 days to wait for their 10-K. Always a dull moment! I think management needs to be tossing us a bone here pretty soon. We've been gnawing on nothing for a long time now.
Vu1 to give another presentation at another conference. Good to see them getting the word out. I think we have these conferences to thank for recently fortifying our share price:
http://finance.yahoo.com/news/Southwest-Investment-iw-4089980385.html?x=0
Someone on the Vu1 Yahoo message board brought this to my attention. It's just a mention of ESL technology, but it's reassuring to see that the word is getting out:
http://news.cnet.com/8301-11128_3-10469446-54.html?tag=mncol;title
Wow! It's been quite a day. 20 minutes left in today's session and Vu1 is up by $0.10 a share. One of 2 things: either something is in the works which will come to light soon, or there have been several serious investors who liked what they saw at the conventions where Vu1 gave presentations. Perhaps both. Vu1 has also been meeting with investors behind the scenes, so this pop could potentially be a result of that.
It's been several days now that the volume has been up and these last 2 days we've gotten a rather remarkable jump in share price. Now, I remind myself that the share price could drop just as quickly as it has popped, but I'm inclined to believe that something is in the works. Hopefully, we'll be getting news very soon.
I hope to hear something by the end of the month. If we haven't by then, I'll contact the folks at Vu1 and press them for some info. They're not late on anything yet, but antsy-ness will begin to creep in if I haven't heard anything by the end of this month. But I'm lovin' this.
Vu1 has a new blog post. It's more about the inadequacies of CFLs: http://vu1corp.blogspot.com/
Yes, Bull, I agree. Vu1 will probably be bought out eventually and most likely the best thing for its investors. Provided the funding holds out, I think Vu1 will continue forging ahead with their business plan until that day comes, so that one way or another they will be making money from their technology and ESL lightbulbs.
Just a thought. For those who may have missed it, the following is a link to Vu1's last PR, which came out in December: http://74.125.113.132/search?q=cache:2WJ...
The Key Points (besides announcing their last video):
1. "Demonstrating our technology’s ability to function as a stand-alone bulb is an important step as we move into the next key phase - miniaturization of the electronics in preparation for pilot production...We are now focused on transitioning our initial bulb design toward a market-ready product so consumers don’t have to compromise on safety, energy efficiency or light quality when choosing their light bulbs."
2. "Company will target reaching the market in the second half of 2010"
3. "Vu1 has recently applied for a patent utilizing ESL technology in a linear fluorescent tube shape, the most common lighting in commercial buildings. Currently there are more than 1.5 billion fluorescent tube fixtures in the United States alone. The company has recently begun work on an affordable, incandescent light quality, dimmable, mercury free replacement for the common fluorescent tube."
Since we're in the midst of a slow news period, I thought it might be worthwhile to remind interested parties about the company's latest developments using their own words. Hopefully, we'll soon be hearing how they've been building on December's pronouncements. Here's to a good week.
It has been quiet for too long. Happy to report anything positive. Hopefully, we'll getting something of more substance pretty soon.
Finally, a little news to report. Vu1 has begun giving presentations at some investment conferences. They will be presenting this Saturday (March 13) in Frisco, Texas:
http://finance.yahoo.com/news/Southwest-Investment-iw-4089980385.html?x=0&.v=1
Here's a video from the Spring Break for Wall Street 2010. There's a little snippet in this video of Vu1's CEO Gale Sellers presenting their light bulb:
http://www.mefeedia.com/watch/29190284
Also, Vu1 gets a nice mention in the following article:
http://www.stockhouse.com/Community-News...
Hi Walker, and welcome to the board. Just keep an eye on this company. If it succeeds, the move up will be long, so you'll have plenty of time to get in. If interested, make sure you're signed up for Vu1's PR emails. They don't come very frequently, but when you do get one you know there's something up that's important. They don't send out fluff.
Nice pop on strong volume. Though I don't put much more weight into days like today than I do the down days--since there's nothing to precipitate either--I certainly prefer the former. However, moving up on heavy volume is a positive sign, and 11% is not a bad jump at all. Let's see more days like today.
This waiting is starting to drive me a little crazy. I was at work the other day and started scooting across the rug like a dog with an itchy butt. It probably wouldn't have been a very big deal had I only left my pants on. Had I only left my pants on...oh,well. Unpaid leave has some advantages. (That's my opinion, not my wife's.)
Hopefully, Vu1 will give us a word on progress next week. Even a blog entry helps. This is where we really learn the value of patience. I don't want to email Ron Davis because I don't really have anything to ask him. He doesn't mind if I have a legitimate question, but its got to be more than, "Hey, I'm impatient. What's going on in there?" That's when he shows his impatience with me. (Not that that's ever happened, of course :O)
Not much going on with the Vu1 stock right now. I was able to pick up a couple thousand shares Friday at $0.43, so I'm happy about that. Bringing down that cost average. I suspect we'll hear something within the next couple of weeks. I know at some point here soon we will begin to get specific word on steps being taken toward their official product launch. That's when things will start to get interesting. Hopefully, the next news we're made privy to will be the completion of the R30 prototype, which will mean the size of the bulb was successfully reduced and they're ready to go.
You're welcome. :O)
You're welcome.
Vu1 has posted a new blog entry on their website:
http://vu1corp.blogspot.com/
This new post is regarding the misleading information being put out about CFL efficiency and power factor. Most CFLs are only about half as efficient as they claim to be. Apparently, Vu1 has gotten the efficiency of their power factor up impressively high allowing them to, in effect, do a bit of gloating. That will help immensely once they jump into competitive battle.
There's also a link to a pretty cool video of a guy running an incandescent stage light with a small generator then switching to a tree of CFLs that are advertised to require, collectively, less electricity than the stage light. The CFLs are too much for the generator.
Agreed. I've been in for about 1 1/2 years and they've made a lot of progress during that time. You'd have to be crazy to get out now. I don't think it will be too much longer before we find ourselves very pleasantly surprised with some exciting Vu1 news.
Very cool, Sir Bull. Thanks for sharing. I put in a buy order at $0.45 on Monday like I said I was going to and it went through! Did that in my ROTH. I figure if this baby takes off like I expect, a ROTH IRA will be a good place to have my shares for tax purposes. I have shares both there and in my individual account--for my more active trading. Hope we get some news soon. I'm getting impatient.
I'm going to test my $0.45 support point by submitting a buy order at that price next week. It's possible that the share price will drop below that, but I don't think it will, unless from a momentary trade. If the selling pressure extends beyond what we saw last week it will soon run into the longs who are holding for events later this year (discussed earlier), longs who will be unwilling to sell at these prices, thus, the support point (what I'm calling at $0.45). This is just a theory, but I think well grounded. I post this for those waiting for the best entry point for buying shares of Vu1, and for those of us looking to add more to our position at the best price. As we've all experienced before, if you wait too long for the perfect entry point you'll end up paying more because the share price will hit support and start to move up at some point.
I'm not expecting anything from Vu1 during the coming week, though one never knows. Good luck to all and I hope we all have a good week.
Volume was up considerably this week. I wouldn't read too much into that except that there are either a lot more investors becoming aware of Vu1 or just a few investors that have gained a lot of confidence in this company. Higher volume is good, though I'd like it better if the share price went up with the volume. But I've said it before and I'm sure I'll repeat it again, and that is that we can't expect too much from the share price until we get news that can be defined as proof that more progress is being made toward Vu1's initial product launch. Don't be surprised if we see more selling pressure causing the share price to drop further. I think we're nearing a support point, which I put at $0.45. These low prices are only temporary and make for a good buying opportunity. Obviously it's clear that there are investors out there that have recognized this.
Eloi,
I firmly believe that an investment in this company will be a winner for you and your son. It's one of those "right technology at the right time" scenarios. According to Vu1, their primary focus right now is reducing the size of the power module for the R30. I was told it's a very tough, complicated challenge, but they've been working on this long before the larger bulb was developed (for the 2nd of their 3 videos) and expect to have the job done soon. I was also told that, in the meantime, they're continuing to improve their technology: "Progress on the electronics is being made virtually every day."
Right now it's just a waiting game for investors, but they do have updates planned like the recent video displaying the different bulb types. They are 100% confident that this company will succeed and still hope to hit the market this summer.
I agree with you and Bull about the acquisition prospects for this company, maybe as soon as the end of this year. Either way, this stock is a money maker. Oh, and welcome to the board!
Just to catch folks up, I was recently told by Vu1 that the R30 bulb Vu1 will be coming out with later this year has a planned retail price of under $20.00. Fully dimmable, temperature resistant, instant on, can come on at dimmed settings, superior light quality, and NO MERCURY. They are targeting the same price for the 4' ESL tube once it becomes available. They also state that, like LEDs, these prices will come down as materials will be discounted when bought in bulk and the manufacturing capabilities refined and multiplied.
They've been talking up these ballasts for almost 2 years now. It's always just around the corner. But the problem I see for PureSpectrum is their business model. I don't see how they can make a sizable profit. So far the company has contributed nothing but their name (which can't be worth much since they are unknown). Everything else comes out of their pockets--manufacturing, publicity, marketing, packaging, shipping, salary and overhead, etc. Even if they are to get their ballasts to market, after they pay all of their expenses what's going to be left to show shareholders? Anything's possible in the business world, but I think they've got a real tough row to hoe. I think after a few quarter earnings cycles investors will become disillusioned with PSRU as an investment.
Cool. So what do I do if there are posts off topic or SPAM? Do I have to concern myself with cussing?
Sure, I think I could manage that.
Hi, Bull. Sorry for the delayed response. So what I'd be doing is putting up the latest news concerning Vu1?
What would it entail?
That's my opinion as well.
The Bull, are you familiar with William B. Smith and SAM Advisors and their investment in Vu1? You might already know all of this, but William Smith is one of those Wall Street investment big shots. He's the founder and CEO of SAM Advisors and Smith Asset Management. At the beginning of last year Smith bought a 5.07% stake in Vu1. They increased that stake to 9.82% in September and just upped the ante a few days ago by increasing their stake further to 11.32%.
William Smith is no fool with his money and it's clear that as time progresses his confidence in Vu1 has only increased. It's always nice when someone smarter than me invests in a company I hold shares in. Point being, Mr. Smith believes that he will be paid handsomely for his patience and we'll will be as well.
Vu1 just posted a new video on their website. It demonstrates ESL technology in 2 more bulb types, an A-style bulb (typical household light bulb) and an R80,a European reflector bulb. They also state that they're working on the 4' florescent tube style bulb. Well...see for yourself: http://www.vu1.com/ESLupdate/
The Bull, I agree with you that a buyout is a distinct possibility. Vu1. Cheers! I think we're in for a prosperous 2010.
I don't understand how this company can make money. So far none of their products are proprietary. So what does that leave them contributing to their business model besides their name, which is unknown? After paying manufacturing costs, packaging, shipping, travel expenses, promotional expenses, salaries, etc., what will they be left with? Any money that is to be made will go to Litetronics, the company manufacturing PureSpectrum's non-proprietary bulbs. This looks to me like a typical much to do about nothing penny stock. You will see that when they finally file their quarterly report, they will have nothing in the way of revenue. They will offer the excuse that it's the cost of starting a business but things are really picking up, but then the next quarterly report will also be dismal. They will offer more excuses and promises and it could go on for a couple more years. Buyer beware!
This is the stock to own in 2010. I've been following this company for a year and a half now and I'm convinced that this company represents one of those rare once-in-a-lifetime investment opportunities. I've been told by their CMO that they have a series of announcements planned, including additional videos, on the company's progress regarding the development of their bulb leading up to the launching of their first ESL bulb. ESLs will soon replace CFLs and will become the bulb to go toe to toe with LEDs. Also, their next bulb will be a tube style bulb and their only competition will be mercury filled florescent tubes. I was also told that there are some US legislators very interested in this product and could be receiving a serious grant from Uncle Sam. This company has a tremendous future. We should be receiving some updated news any day now.
The Bull, I share your enthusiasm.
Thanks for the response. That would be my assumption, $0.24, though I suppose MMs could decide to offer it at a couple of pennies higher or lower, however they determine this process will effect the demand for the stock. But, yes, I expect to see it resume trading at $0.24. It's been an interesting process. I hope investors are rewarded for their patience and commitment.
Will the MMs be determining the share price?
Just wanted to say "thanks" roadk for keeping us up on this company. It's one of my biggest positions and I'm always looking for info pertaining to Vale. I appreciate your efforts.