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Strongly believe in Nassim Taleb's theories. Have a strong focus on the market psychology and behavioral finance aspect of equity trading. Prefer longer term trades for best risk/reward profiles. Still believe Buy & Hold strategies can be relevant in the current market.
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  • ZBB Energy: A Green Technology Buy 0 comments
    Jan 9, 2010 5:33 PM | about stocks: ESNC, ABAT, HEV, AONEQ, VLNCQ, ULBI
    Today Obama had a press conference announcing the allocation of 2.3 billion dollars to help stimulate job creation in the new 'green technology' sector of America. According to Obama, the awarding of the project money was oversubscribed threefold, and they had to select only the most efficient companies that had projects that were "shovel ready", as well those deemed to create a significant amount of jobs. One of the winners of this government stimulus was seen in this press release that first hit the wires at 1:28 EST:

    ZBB Energy to receive $14.87 mln in clean energy tax credits - The Business Journal (Milwaukee) (1.54 +0.21) -Update

    The Milwaukee Business Journal noted that The Obama administration announced Friday the awarding of $2.3 bln in stimulus tax credits for clean energy manufacturing projects across the country, including $33.5 mln for projects in Wisconsin. Another significant tax credit award, $14.87 million, will go to ZBB Energy, a Menomonee Falls-based manufacturer of large-scale zinc bromide batteries for alternative energy applications.

    This is a significant long-term plus for ZBB, and shows that the government is supporting their efforts toward energy storage and efficient power management strategies. The nearly $15 million dollar tax support is just about the size of ZBB's current market capitalization of $19 million dollars, making this a very fortunate turn of events for a company in such an early stage of growth. The government's ties to this company do not end there however; on November 9, 2009, ZBB announced it had received an order for its systems on a government facility as a demonstration site.

    "ZBB’s Vice President Sales and Marketing, Mr. Kevin Dennis said, “This project is the initial 24hr photovoltaic powered system for a US government facility, that firmly places energy storage as the cornerstone for an integrated, renewable energy system that not only can shift energy outputs across the daily use and generation cycle associated with PV, but has the capabilities to send surplus power to either storage or to the grid, based on time of day or other priorities. Though this is only the initial demonstration system, the architecture used by SEI for this project is readily scaled up to much larger systems capable of producing, storing and managing renewable energy for entire sites.”

    Mr. Mark Kelly, Vice President / Program Manager for the Energy Technologies group at SEI said, “ZBB’s system approach for integrating next-generation zinc-bromide energy storage units and renewable energy made this a straight-forward design and implementation for our engineering team that wasn’t available previously. The ZESS POWR system will make renewable energy more stable and valuable as a generation source.”

    About ZBB: 

    ZBB Energy Corporation (ZBB) develops and manufactures distributed energy storage solutions based upon the Company’s zinc-bromine rechargeable electrical energy storage and power management technologies. The wholly owned subsidiaries of the Company include ZBB Technologies, Inc. and ZBB Technologies, Ltd. The Company designs, develops, manufactures and distributes energy storage systems and solutions under the trade names ZESS 50, ZESS 500 and ZESS POWR. The ZESS 50 and ZESS 500 energy storage systems are built using a process based upon the zinc-bromide rechargeable electrical energy storage technology while ZESS POWR hybrid power conversion system is manufactured by the power electronics partners utilizing their components.

    In summation, with this new contract there is much to be excited about for the future of ZBB Energy Corporation. Not only do they seem to have an inside track with government officials' seemingly strong approval of their technology; but they are now positioned to take a much smoother path to profitability if they continue winning projects in the future. I took the opportunity to buy some shares in the $1.50 range today, and I believe this is a strong buy at current levels since the company's shares will now reach the $3.00 level within one years time. 


    Disclosure: Long ZBB
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