Seeking Alpha

David Collins'  Instablog

David Collins
Send Message
I am an investor relations consultant with 25+ years experience steering IR strategy and outreach for over 100 companies across a range of industries. We launched Catalyst Global in early 2012 to serve as a platform for innovating the IR role to better address the radically different dynamics... More
My company:
Catalyst Global LLC
  • $FLUX - Flux Power Holdings - Tiny Player In Lithium Battery Replacement Market 1 comment
    Sep 26, 2013 6:18 PM | about stocks: FLUX

    Recently heard the story of Flux Power Holdings $FLUX a tiny ($2-3M market cap) "restart" in the lithium storage market. They are bringing to market lithium batteries as a replacement for lead acid batteries in the fork lift market - those you walk alongside and those you can drive. The cost of ownership of lithium is far lower than lead acid because of its life (5+ years) it's ability to hold a charge (longer operating duration), its absence of maintenance (watering and more regular charging) and safety (no acid).

    The market they are targeting ships at least 60,000 new lifts per year, and they last five years on average, making for a total battery population of around 300,000, each of which last about 2 years at best. At over $2k per FLUX battery, the revenue potential approaches $600M - but the market has been doing fine thus far without them - so taking share is not a trivial exercise even with a better product.

    Even at the higher cost, it is sort of no brainer when you crunch the numbers and consider the cost of staff time and efficiency. BUT - driving new thinking & technology into an established (industrial) market is not easy, and requires effective sales & marketing, plus partners & distribution channels.

    But the attractive part is that the technology and the market opportunity exist - they have begun to show their batteries with initial interest - so it's not hard to believe they can sell some customers. But the scale they can sell is up to FLUX to demonstrate with numbers and clearly the balance sheet will need some reinforcement to get them where they want to go.

    But at least it's got my attention.

    And in full disclosure - my father is in the process of merging his company KleenSpeed into Flux and involved in the management of the company from the outside, so I clearly cannot be unbiased in my views - but I also have no reason to write anything here that might harm my reputation or credibility - particularly when it concerns a $0.05 stock!

    Actually the whole reason I started to write something was to see if I could post on an OTCQB stock here - as the $FLUX symbol was not being found in any searches on SA.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Additional disclosure: I am an investor relations consultant; FLUX is not a client.

Back To David Collins' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • sustainer
    , contributor
    Comment (1) | Send Message
     
    If Flux Power is still selling Voltroniks cells they are pushing Chinese Military rejected material. These cells are far from matched in impedance and even vary in weight by up to 3%. Flux Power is very good at covering up the multitude of failures in the development lab and in the field, i.e., Boeing 787 type failures.
    26 Mar 2014, 06:28 AM Reply Like
Full index of posts »
Latest Followers

StockTalks

  • The underlying ISE index for the Cyber Security ETF $HACK limits investments to market caps over $100M, leaving $WAVX & $BKYI on sidelines
    May 9, 2015
  • Street Sweeper Caught with its Hand in its Pants - Attn: Reap what you sow department. Nice work $EBIX on your Q1 results & share purchases
    May 8, 2015
  • Melissa Davis Takes Premature Bow on Demise of $EBIX. Q1 EPS rise 28% as EBIX prunes Q2 share count to 35.2M from 36M in Q1
    May 8, 2015
More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.