Four Flywheel Stocks That Are in Perpetual Motion

There are many types of alternative energy stocks such as solar energy stocks, wind energy stocks, fuel cell stocks and ethanol stocks. However, there is a fairly obscure type of alternative energy called flywheel storage energy. Flywheels are rotating disks that are used to store kinetic energy.

Flywheels have recently become popular in the Uninterruptible Power Supply [UPS] business for short term power outages and research has been done into its use for automobiles. There are several advantages to the flywheel technology over the lead-acid batteries in UPS’s, including higher efficiency, a longer lifespan, and a smaller size, not to mention the reduction in safety and disposal issues that exist with the lead-acid battery UPS's.

Here is the list:

Active Power Inc. (ACPW) which trades on NASDAQ, was founded in 1992, and is based in Austin, Texas. It manufactures and sells power products that are battery free such as its CleanSource UPS, a battery-free un-interruptible power supply utilizing flywheel technology. The company has generated negative earnings, but it had a 7.3% increase in quarterly revenues year over year, with a price sales ratio of 3.82. The company is debt free.

Beacon Power Corp. (BCON), which trades on NASDAQ, was founded in 1997, and is based in Wilmington, Massachusetts. Its primary product is Smart Energy matrix, a flywheel-based energy storage system used by electrical utilities for electric grid regulation. The company has had negative earnings, but reported a 36.1% increase in quarterly revenues year over year. This company is debt-free, and has a P/S ratio of 125.

RailPower Tech Corp. [RLPPF.PK], is a Canadian-based company involved in the development, construction, marketing and sales of specialized energy technology systems for transportation, and power generation. Although its earnings have been negative, its revenues have gone from C$ 2.259 million in 2006, to C$ 25.120 million in 2007, an increase of over 1000%, for the quarter ending March 31.

SatCon Technology Corporation (SATC), trades on the NASDAQ. It manufactures, and markets technologies, and products for electrical power control and conversion, including Rotary Un-interruptible Power Supplies. The company has had negative earnings, but has a P/S ratio of 1.96. Its quarterly revenues were up 9.3%.

Boeing Co. (BA), has also been involved in the flywheel business. Although it has been a small portion of the company's business, it has been working on superconducting flywheel energy storage systems. It has a P/E of 33, a PEG of 1.16, and a yield of 1.4%.

Disclosure: The author does not own any of the above.

Comments

[rhodope:]

Would CPST merit a mention on this article?

2007 Jul 17 01:56 PM

[longtermstocks:]

4 or 5?

2008 Oct 22 10:40 AM