American Power Group, Corp. (APGI)

[Onlibo]

I would expect them to be in line or beat Q1 forecast. I do not believe today's earnings release or call will be the big news. The big news for APGI will be in the second half of the year, when the big orders start being completed and new ones are expected to be received. Also, APGI is expected to be cash flow positive by the end of the fiscal year!

Cash flow positive, expanding customer base with single orders that more than triple prior year's earnings, low to no remaining R&D costs and upward trending top and bottom lines, increased analyst coverage (more exposure = more interest = more demand = higher stock price) and a leader who always does what he says makes me a believer in APGI.

IMHO, if APGI does not break $1 this year, I will be very surprised. They should already be over $1 per share and I believe $2 in the next 12 month could happen. Once they are cash flow positive and the vehicular franchisees begin making the forecasted revenues, the sky is the limit. Right now, the big revenue is coming from generator conversions; this is not the real money. The real money will be from the higher volume vehicular conversions. With the franchise strategy and strategic partnership APGI has entered, it is only a matter of time before they are a high growth, high revenue company with very good margins.