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siliconhillbilly
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Retired electrical engineer with 30+ years experience in designing instrumentation and switching power supplies. I understand ICEs, electric motors and electrical grid transmission. General Physics background. I worked for many years in the semiconductor equipment business in Austin, Texas.... More
  • Axion Power International, AXPW.OB, for trade and investment 2 comments
    Jun 3, 2011 4:14 PM | about stocks: NSC, AXPW

    If an expected DOE research grant gets final approval in the next month or two, I expect a significant jump in the price of AXPW.OB (Axion technologies).  I have been slowly building a position in this battery development "tech" stock for over 6 months.  All the elements for ultimate success seem in place and Norfolk Southern (NYSE:NS) has publicly acknowledged a purchase order for about $500k worth of batteries and battery management system.  This equipment will be used in a prototype railroad hybrid
    diesel-battery switcher locomotive.  The hybrid RR engine concept was proven out several years ago, with 50% fuel savings, but the Lead Acid batteries of the time couldn't take the high cycling activity and died after some months of use.
       Axion's PbC battery is really a hybrid of an AGM lead acid battery and carbon electrode supercapacitor.  It thrives on frequent, rapid cycling.  It has run, without meaningful degradation, for 70,000 shallow discharge cycles with rapid (100A) recharging. Whether this will translate into a deeper discharge, 10k+ cycle reliability in the RR switcher hybrid will be the subject of testing starting later this year.

      Having looked at the technology, I am confident it will be a cost effective solution for the locomotive diesel-battery hybrid.  It might also work for a pure battery yard switcher engine, producing zero point-of-use air pollution.

    Disclosure: I am long  AXPW.OB


    Stocks: NSC, AXPW
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  • bearness
    , contributor
    Comments (58) | Send Message
     
    I am a CPA/MBA who has been studying all aspects of finance, economics and fundamental and technical stock analysis for over 40 years. I screen money managers for certain clients and consider myself adept at sector selection, market timing, and hedging. I am very interested in alternative energy and a conservationist. I ride a bike frequently.

     

    What is the cash/current assets position of this company? Does it have sufficient working capital and borrowing capacity to continue as a going concern until they reach production stage?
    31 Jul 2011, 04:11 PM Reply Like
  • siliconhillbilly
    , contributor
    Comments (2728) | Send Message
     
    Author’s reply » bear, you don't ask easy questions. At current burn rate they have enough cash to carry them thru 1Q 2012. This if from memory.

     

    I don't expect enough income from product sales by them to make them cash neutral, so some type of fund raising will almost certainly be necessary next year, probably 1-2Q.
    If news and market forces between now and then raise their stock price above $1.00, I would expect an equity offering to raise 15- 20 million. But I don't read markets or minds at 2-3 quarters distance :-)

     

    If good news is reported within the next 2 weeks, as expected, there could be a big jump in interest in the stock which might translate to a stock price bump. Not meaningful economically but a nice psychological boost to the haggard investors :-)
    1 Aug 2011, 12:52 PM Reply Like
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