UQM Technologies: Rumors Behind Sharp Increase, and Possible Plummet

As part of a general portfolio cleanup, I recently considered selling my stake in UQM Technologies, Inc. (UQM), a  manufacturer of electric motors for hybrid and electric vehicles.  I chose to keep the stock because the company seems to have sufficient cash on hand to fund several years' operations.  I'm glad I did, because the stock is up 76% since Monday, with no recent news.

But there's a rumor that Chrysler will be using a UQM product in one of its planned electric cars.  If that rumor is true, the stock's rise is probably justified.  I like the company either way, but don't expect all the gains to hold if the rumor turns out to be false.

DISCLOSURE: Tom Konrad owns UQM.

Comments

[whinthorn:]

Just look at the Autobloggen green photographs of the equipment
www.autobloggreen.com/.../

2008 Sep 26 06:13 PM

[lostalot:]

That photo shows a prototype which is not powerful enough for what Chrysler hopes to produce. What Chrysler wants does not exist.


On Sep 26 06:13 PM whinthorn wrote:

> Just look at the Autobloggen green photographs of the equipment<br/>www.autobloggreen.com/.../

2008 Sep 29 06:18 PM

[lostalot:]

That photo shows a prototype which is not powerful enough for what Chrysler wants. What Chrysler wants does not exist.

2008 Sep 29 06:18 PM

[JD Sullivan:]

Tom, I have been following UQM since 1998 and have bought and sold it a few times. I have been to their Plant and know several former as well as present top people......in the case of Chrysler, this is true.....that picture reveals a UQM Contoller which means the it is a UQM power supply or the whole UQM package. They have been dealing with one of the big three but could not disclose anything and that picture perhaps was innocently taken under the hood and let the cat out of the bag. Yes they do have great cash reserves and superior technology with follow on patents in the works.....I used to live in Detroit and have several friends connected with Chrysler and sent out some emails when I heard the rumor.....I basically now have confirmation that UQM will be a supplier on these new models.....I think UQM has a great future now and am increasing my position.

2008 Oct 07 03:00 PM

[lostalot:]

Regarding the photo referred to by Whinthorn, above. Yes, that is UQM, but just an undersized model for show. The specs that Chrysler needs is for a much more powerful unit. UQM must first develop it. Time has passed since this article was posted. Perhaps in Jan '09, UQM may have something. However, whether Chrysler can still afford to develop this prototype plug-in hybrid, and whether UQM remains the source, remains to be seen.

2008 Dec 31 05:27 PM