Acorn Energy (Nasdaq: ACFN) likes to take a stake, if not outright purchase, struggling companies that have invested millions of dollars and spent many years perfecting their innovations. These companies are just beginning to reach the "Tipping Point"; in other words their technology is now ready to be profitable in the market but they may not have the cash or resources to scale up. This method has worked extremely well for Acorn in the past, having successfully brought several companies public and turned private companies profitable.
What does Acorn's current portfolio of companies have in common? For starters, they're green. From catalyst regeneration technologies and services to reduce noxious emissions by fossil-fuel power plants, to improving efficiencies of the electric grid, to delivering mail in Germany. There's even sonar technology that allows owners of fossil fuel infrastructure assets such as oil rigs, pipelines and oil terminals to protect their investments.
Acorn's portfolio is one that is focused on profitable clean tech and making the world a better place to live. ACFN is truly an undiscovered stock; where else can you find a green profitable company with a P/E of 1.71 and EPS of 2.45?
For those investors that acquire ACFN in its current range, we believe their world will soon be a greener place too.
Acorn Energy is a "green" holding company focused on improving the efficiency of the energy grid and reducing the environmental impact of the energy sector. ACFN has virtually no debt and as of August 13, 2008, has a cash balance in excess of $19.0 million.
Acorn Energy's operating companies leverage advanced technologies to transform the existing energy infrastructure. ACFN's strategy is to take primarily controlling positions in companies led by great entrepreneurs and add value by supporting those companies with marketing, strategy and business development.
Acorn Energy is a global company with interests in seven companies. ACFN has equity interests in three listed companies: 552,500 shares of Comverge, (listed on the Nasdaq Global Market), 407,000 shares (31.4%) of Paketeria AG (listed on the Frankfurt Stock Exchange), and 15,714,285 shares (23.8%) of GridSense (listed on the TSX Venture Exchange). Acorn has controlling or significant interests in four private companies: CoaLogix, (85%); Coreworx (100%); DSIT (72%); and Local Power (10%).
ACFN Investor Highlights
- ACFN has virtually no debt and as of August 13, 2008, has a cash balance in excess of $19.0 million, including $2.5 million of restricted cash.
- Sales in the first six months of 2008 increased by $6.2 million or 359% to $7.9 million from $1.7 million in the first six months of 2007.
- Recently announced its CoaLogix subsidiary secured two new contracts for catalyst regeneration totaling over five million dollars. CoaLogix's current backlog in regeneration contracts represents about three times its entire 2007 revenue.
- These awards bring the total SCRs under management to over 10,000 MW. The total "fleet" of SCR catalyst in use in the United States is about 145 GW for coal plants and about 50 GW for gas fired plants, representing a major growth opportunity for CoaLogix.
- Recently completed its acquisition of Coreworx of Kitchener, Ontario, provider of the Coreworx[TM] suite, the world's leading software tool for capital project information management and collaboration. Coreworx is currently utilized to help manage the construction of hundreds of major capital projects, including offshore oil production, refineries, mining operations and power plants around the world.
- Announced that its Paketeria affiliate in Germany has deepened its partnership with the Volksbank network with the execution by Volksbank Meissen of an agreement to open 12 "shop-in-bank" locations in Meissen -- two in August and the remaining ten in the fall.
- In May 2008, CoaLogix signed an agreement to pay an upfront $2 million license fee and subsequent royalties on net sales to obtain the exclusive worldwide commercialization and marketing rights to Solucorp Industries' technology for the fixation of heavy metals, such as mercury, for the electric power generation industry. The agreement grants CoaLogix exclusive worldwide marketing rights for the technology for a period of ten years with an option to extend for an additional five years.
- Acorn Energy completed its acquisition of a significant minority interest in GridSense in January 2008, providing the Company a strong foothold in Asia and the emerging field of remote monitoring and control systems for electrical utilities.
- In February 2008, ACFN's DSIT subsidiary, a leader in the field of threat detection for underwater energy infrastructure, announced $1.4 million in new contracts involving the integration of subsystems developed by DSIT into systems built by customers and opportunities to expand the projects in the future.
- Recently announced that its DSIT subsidiary has been awarded new development and production projects at a total value of approximately US $900,000.
- Acorn Energy now owns significant interests in three listed companies: 552,500 shares of Comverge (listed on the Nasdaq Global Market), 407,000 shares (31.4%) of Paketeria AG (listed on the Frankfurt Stock Exchange); and 15,714,285 shares (23.8%) of Gridsense (listed on the TSX Venture Exchange). Acorn also has controlling or significant interests in four private companies: CoaLogix, (85%); Coreworx (100%); DSIT (72%); and Local Power (10%).
Disclosure: Author holds a long position in ACFN