Agreed. There's a lot of focus on electric vehicles of late, and Sevcon seems poised to capitalize on the sector.
I like that their net sales have grown consistently since Q1 2013:
Q1 2013: $6,640
Q2 2013: $8,017
Q3 2013: $8,675
Q4 2013: $8,871
Q1 2014: $9,170
None of this really factors in the potential of their control technology for hybrid electric vehicles and other on-road initiatives in China (and elsewhere) going forward. Seeing the Phoenix Motorcars article just reinforces that Sevcon's control technology is being used actively in the EV market even in the US.
Perhaps the mention of financing has folks spooked? (even though it would be to fund growth in the EV sector)
"Our key strategic challenge is scaling the business to capture this opportunity on a timely basis, which we may accomplish organically or through acquisitions of other businesses, or both. Meeting this challenge means that we will need a stronger balance sheet to fuel accelerated growth. We are considering raising equity capital by means of a rights offering or other approach, and we are developing a capital allocation and investment strategy that will help us to achieve our goals," concluded Boyle.
I guess it's not a low P/E stock either, but it seems like the opportunity for growth in a hot sector (not to mention low float) make it attractive. Hopefully the share price turns around soon from here.
