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Odaat seeks unique, high-return investments. I am a research, buy, and hold investor. I do not short stocks or play options.
  • 3/4 Of A Million Dollar Order Emphasizes APGI's Real-World Superiority 2 comments
    Jan 24, 2014 12:58 PM | about stocks: APGI

    Note: This instablog entry is not the main, detailed analysis to which I refer in the Seeking Alpha article. To view that entry (well worth the read), scroll down to the one below titled "Dual Duels in Dual Fuels: Why APGI Emerges The Natural (gas) Champion"

    Today, as American Power Group CEO Lyle Jensen speaks at the World LNG Fuels Conference (yet another example of APG being invited to the table, where the likes of Eco-Dual, Landi USA, Hythane, GTI, and others are not), we also see a highly positive follow-on order from Collicutt Energy. While I am now confident that APG is and will remain the undisputed leader in the vehicular realm, my most recent due diligence on CAT's Dynamic Gas Blend product, and into both the product and the company from Australia's Hythane, convinces me that APG is going to have the lion's share of the stationary market as well. I believe the next two quarters will see the beginning of a cascade of sales orders, and initiation of coverage by at least one investment house. Bear in mind, when you see follow-on orders, these are orders that are coming in after field testing head to head with competitors and after the given customer has already installed and been using APG's system. Translation: It works, it's reliable, and when they do the math of how much money it is saving them, putting the system on more trucks / more generators / more mining rig engines is a complete no-brainer.

    A release excerpt is here, with anything underlined or bolded being my emphasis:

    LYNNFIELD, MA - January 23, 2014 - American Power Group Corporation (OTCQB: APGI) announced today that its subsidiary, American Power Group, Inc. ("APG") has received $750,000 in follow-on purchase orders since October 1st from Collicutt Energy Services, its stationary authorized dealer and certified installer in Alberta and Western Canada.The orders are for the upgrade and conversion of additional diesel generators on drilling rigs using APG's Turbocharged Natural GasT Dual Fuel System. While the end customers were not disclosed for proprietary reasons, these customers are ranked among the top oil and gas exploration and drilling companies in Canada and North America.

    Steven Collicutt, CEO of Collicutt Energy Services stated, "Many of our customers drill under some of the harshest operating conditions in North America. The proven reliability, performance and economic returns of the APG dual fuel solution under these circumstances has led to increasing demand from new and existing customers. Mr. Collicutt added, "APG provides our customers with a significant competitive advantage in a very bottom-line driven industry. Several of our oil and gas drilling and service company clients estimate a potential annual net fuel savings of over $1.0 million dollars per drilling rig using APG's dual fuel solution."

    Lyle Jensen, CEO of American Power Group stated, "We are pleased to see continued strong interest in the Canadian market from some of the leaders in the oil and gas drilling services market. We are already over 250% of last year's Canadian revenue and anticipate our penetration into the Canadian market to accelerate through our relationship with Collicutt Energy Services." Mr. Jensen added, "In addition to the fact our Canadian customers continue to see over 50% diesel displacement ratios, APG's dual fuel system was the first and remains the only solution to obtain CSA Inspection and Acceptance. Similar to Underwriters Lab ("UL") approval in the United States, the CSA Inspection and Acceptance mark shows that a product has met CSA's recognized standards for safety and performance."

    Disclosure: I am long APGI, .

    Stocks: APGI
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  • worthy
    , contributor
    Comments (49) | Send Message
     
    As usual, a well written study on a company hardly anybody is "onto", yet, but time to buy is running out.
    24 Jan, 01:35 PM Reply Like
  • Odaat
    , contributor
    Comments (87) | Send Message
     
    Author’s reply » Thank you for the kind comment.

     

    I could not agree more that the window for the typical individual private retail investor to establish a long position for the purpose of exceptional returns is closing fast. This Collicutt order is in the stationary sector, which isn't even a tributary to the main waters (the vehicular sector) about to bust through the floodgates with all the vehicular bids that went out in 2,3, and 4 Q13 turning into orders in 1,2,and 3Q14.

     

    I was at the bid yesterday for most of the afternoon, nibbling away to add a bit more to my long position. I wanted to get in before all of the folks who were impressed at CEO Jensen's presentation yesterday got their calls into to their brokers. :-) (Not that I swing or day trade APGI. Full disclosure, I have never sold a share of APGI - have done nothing but establish a core long position several months before I published my article, and regular, substantial accumulation since...each time being after I looked into some concern or area of dd or did full dd on competing companies or products, all of which convinced me to go further long in APGI. Heck, about 2 months ago, figuring I was perhaps just being a blind long surrounded by other believing longs, I fervently tried to find arguments against APGI...from other investors, from executives at competing companies, from natural gas gurus, from investment advisors, from experts in the sector, from truck owner/operators, experts in the mechanical installation and maintenance fields, etc. and I simply didn't get any, try as I might. The only concern seems to be the overhang of shares from the raising, and most see that as a non-issue if sales materialize as projected. I have to share with you all, I had two executives from two different competitors (Eco-DUal and Hythane) BOTH spoke positively of APGI and both said they saw APGI as going to have a definite share of the market. One even hinted he admitted that APGI would likely be the market leader. None had any concerns with APG's technology or approach. One pointed out that they saw themselves being successful "because we're focusing on a different market than them, so we think we'll have a presence there." So I asked him if he meant that APG would be the leader in that larger sector (class 8 trucks), and he said yes. When you've got competitors saying thing like this, I can't help but take that as a positive sign. Oh, I could only get get one middle-level management member from the high and mighty Caterpillar to talk to me, and while it was clear he was towing the company line, it was also clear (and straight out said) that they are well aware of APG and he too reiterated CAT's public stance that they see APG as the only viable competitor in the stationary realm. I now understand that in saying so, they were discounting Hythane, and now, due to some further dd, I know why...but I'm not in a position to share that in this forum. Suffice it to say, CAT and APG are the only real going concerns in the stationary application - there is one other small entry (not Hythane) that might have a small market share, but CAT's DBG system and APG's system are the biggies...and guess which one takes 1/10th the time to install, has had NO breakdown issues, costs way less, requires less maintenance, and is proving to be the most reliable, with reputable displacement levels, in all kinds of horrible weather conditions on the engines? You guessed it, American Power Group's. I think the main reason is that the APG system simply "listens" to the engine and adjusts itself to deliver the perfect amount and pressure of natural gas. The engine simply draws less demand for diesel because it's meeting the performance needs of the demand/load. Any of the other, injector-invasive systems, simply don't have this prowess, elegance, or mechanical simplicity, and they are prone to breakdown, complex installations, and expensive changes for each engine class...none of which APG's approach has to deal with.

     

    All should do their own DD, of course, and never use anything online like this to make an investment decision. At best, things like this can serve as a basis for formulating some of the questions of your own dd. (Nice cya statement, huh? The reality is, I'd put my dd on this matter up against anyone's...even professional analysts. It's been closer to years of dd now, more thorough than a 3rd grade school nurse trying to get rid of lice nits. lol)

     

    I'm ODAAT, and I'm long APGI. Best to all.
    25 Jan, 09:31 AM Reply Like
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