Echelon Corp. (ELON)

[DickMN]

Re: Heads up on ELON

(From the Free Zone Board)
http://www.investorshub.com/boards/board.asp?board_id=339

<< Personally I just have a good feeling about elon in the short race so I'm going to get off a few shares of intc and put it into elon.>> - Indy708

That would be a tough call for me. I have a little INTC also, but can't imagine swapping out any of it for ELON. For me it's my strategy of holding a core of blue chips that I know will be there no matter what. Intel may go sideways for a month of Sundays, but sooner or later you know that it'll make money for you.

Looking at nothing but P/E's for the two, it's clear that almost the entire price of ELON is in it's potential. The big question is, how much of it's potential is already priced into the stock with a P/E of 1400? I think a lot of it hangs on whether the product is picked up by other large utilities in Europe and around the world. That will be determined by how well the experiment works for Italy's Enel. I'm betting that the Enel project does work and the ELON technology takes off. There has got to be at least a few other large utilities keeping a close eye on the experiment at Enel.

Also, let's not forget that the utility angle is just one of the new babies at ELON. They have hundreds of other applications based on the Lonworks protocol.

DickMN