Continuing to build position in ECTY (formally ELTE) initially posted 4/30
Ecotality (ECTY as of yday - formally ELTE). They're making electric car charging stations (large scale). Initially i was intrigued by it's tiny float (6M) and picked up a few shares. It moves when the wind blows. Held nicely through all the latest market noise and today White House announced new/more stringent auto fuel standards initiative.
Here's a pretty good summary I found online. Please note I am not familiar w/ or affiliated w/ the site/source...Thanks for your input.
S
www.thegreenbaron.com/Stock%20Pick%20Pro...
"ECOtality, Inc. (OTCBB: ETLE) is a leader in clean electric transportation and storage technologies. Through innovation, acquisitions, and strategic partnerships, ECOtality accelerates the market applicability of advanced electric technologies to replace carbon-based fuels.
As the parent company of Electric Transportation Engineering Corporation (eTec) Innergy Power Corporation, and Fuel Cell Store, ECOtality offers solar, hydrogen, fuel cell, advanced battery, electric vehicle and fast-charging products, services and solutions. ECOtality’s main operating subsidiary, eTec, has more than 50 international patents related to its industry-leading fast charge technology and has provided infrastructure for every major North American electric vehicle initiative since 1989.
The Green Baron Report believes ECOtality (BB: ETLE) is attractive for members for a long list of reasons. Below, we have listed our top ten:
1. The EV Project - $99.8 Million U.S. Grant from the Department of Energy - On August 5, 2009, ECOtality's subsidiary, eTec, was awarded a grant of $99.8 million from the US Department of Energy to undertake the largest deployment of electric vehicles (EVs) and charging infrastructure in history. The Electric Vehicle (EV) Project will include the deployment of 10,950 Level 2 (220V) chargers, 260 Level 3 fast-chargers and 4,700 Nissan LEAF zero-emission electric vehicles in five states: Arizona, California, Oregon, Tennessee, and Washington.
2. eTec’s Minit-Charger – This line of fast battery charging systems enables a more environmentally-friendly, energy- and cost-efficient means to recharge batteries for electric vehicle (EVs and PHEVS), mobile material handling, airport ground support, and marine and transit applications. eTec’s Minit-Charger technology provides the fastest charge possible while improving overall battery life, preventing overcharging, reducing the need for multiple batteries, and eliminating air and noise pollution.
3. Recent Restructuring – Late last year, ECOtality raised $20.5 million in equity financing from various institutional investors. In addition to the capital raise, the debenture holders agreed to convert all $9.1 million of existing debentures and related warrants into equity. ECOtality then completed a 1:60 reverse split of its shares that now trade under its new symbol ETLE.
4. Filing to List on NASDAQ – Back on February 16, it was announced that ETLE filed to gain a listing on the NASDAQ. ECOtality would gain tremendous exposure from additional investors in The United States and worldwide.
5. China Venture’s Access to $300 Million Financial Facility – On March 1, it was announced that ECOtality JV partner in China, Shenzhen Global Investment Limited, obtained a credit agreement with China Construction Bank, and has committed to provide up to U.S.$300 million for product financing of ECOtality’s networked electric vehicle (EV) charging systems in global markets. ECOtality’s CEO stated, ‘”This is a major milestone for creating value for our shareholders as it provides us the capital needed to become the dominant player in the EV marketplace with no current dilution to our shareholders."
6. Innergy Power – This ECOtality subsidiary is the only North American manufacturer of both renewable energy solar modules and rechargeable batteries, and its solar photovoltaic (PV) product line addresses the burgeoning worldwide demand for solar energy products and off-grid power. This division should see huge revenue growth as America goes green.
7. Growth in Electric Vehicles and High Price of Oil – Electric, hydrogen and hybrid powered vehicles are coming. Tesla, Nissan, Mitsubishi, Dodge, Ford and Audi are just a few auto makers that have aggressive plans to roll out electric and green energy run vehicles in the coming years. ECOtality plans to be positioned to fulfill the need to power these cars. Also, the price of oil has just skyrocketed again to nearly $90/barrel. The coming high price of gasoline will likely weigh heavily again on consumers looking for alternatives.
8. FuelCellStore.com - Based in San Diego, California and with active international operations in Japan, Russia, Italy, and Portugal, Fuel Cell Store develops, manufacturers, and sells a diverse and comprehensive range of fuel cell products including fuel cell stacks, systems, component parts and educational materials.
9. Recognition by President Obama and Energy Secretary Chu – In late January, U.S. President Barrack Obama recognized ECOtality in this State of the Union address and Energy Secretary Steven Chu at The Washington Auto Show. The U.S. government has clearly shown its support to ECOtality through its words AND dollars.
10. Low Market Cap Relative to Market Size – The energy market and the products that create and distribute it is simply massive. There will be many winners in the race to deliver quality products in green energy. We believe ECOtality is solidly positioned to be among the biggest winners, and with a current market cap of only about $30 million it is dirt cheap in our opinion.
Electric motors are energy efficient, environmentally friendly, have performance benefits, and reduce energy dependence. However, most EV’s can only go about 100 to 200 miles before recharging, can take hours to recharge, and the battery can be expensive, heavy and large.
The Solution: ECOtality envisions a future in which its proprietary fast charge technology, Minit-Charger, will be available to EV owners at convenient locations such as the shopping mall, the supermarket, or the park. The Minit-Charge technology can provide a safe and meaningful charge for an EV in approximately 15 minutes. Car and battery manufacturers are quickly making advancements by creating smaller and lighter batteries capable of powering vehicles for a longer distance."
