As EnSync's Transformation Unfolds, Stock Still A Great Value
The Small-Cap Authority
The Small-Cap Authority
ZBB Energy: Attractive Relative Valuation, Strong Demand Tailwind And Multiple Near-Term Catalysts
John Leonard, CFA • 13 Comments
John Leonard, CFA • 13 Comments
Sep. 28, 2015, 6:11 PM
- EnSync (NYSEMKT:ESNC) has rebounded after hours, +3.4%, following fiscal Q4 results where earnings met expectations. Shares had fallen 3.3% today on light volume.
- Revenues tumbled 75%, though, and at $0.31M were less than half of an expected $0.7M.
- The company's loss from operations widened to $3.53M, while net loss per share narrowed to -$0.09.
- The company -- which changed its name from ZBB Energy, to reflect a shift from pure play battery company to distributed energy generation systems/services -- pointed to product development as the quarter's key, following a strategic partnership with Solar Power Inc. that has an initial supply agreement of $80M-$120M.
- The partnership brings capital and new revenues and revenue streams, says CEO Brad Hansen. "The new revenues will come from the execution of the 40 MW supply agreement with SPI. The new revenue streams will materialize through the sale of comprehensive energy systems that include the new EnSync products ... in combination with various sources of distributed generation."
May 1, 2015, 4:15 PM
- After opening slightly higher, distributed energy storage system maker ZBB Energy (NYSEMKT:ZBB) sold off today following Tesla's launch of a battery/energy storage line covering homes, businesses, and utilities.
- Tesla's pricing for its residential batteries - a 7kWH version goes for $3,000, and a 10kWH version goes for $3,500 - has drawn attention. Amazon and Target are testing Tesla's business-focused systems.
- ZBB jumped two weeks ago after announcing a partnership with solar project developer Solar Power, Inc., but has since more than given back its gains.
Apr. 17, 2015, 10:32 AM
- Distributed energy storage system provider ZBB Energy (NYSEMKT:ZBB) has struck a deal to supply 40MW of systems to solar project developer Solar Power, Inc. (OTCQB:SOPW) over 4 years. The deal is estimated to be worth $80M-$120M.
- As part of the agreement, SPI is buying 8M ZBB common shares at $0.6678 apiece (40% below current levels, good for proceeds of $5.3M), and $28M worth of convertible preferred shares. The preferred shares are "only convertible upon the completion of specific procurement milestones."
- Following the investment, ZBB, whose systems combine batteries with power management hardware, will have over $45M in cash. The deal also "contemplates" granting SPI a warrant to buy 50M ZBB common shares at $0.7346 apiece (proceeds of $36.7M).
- ZBB chairman Paul Koeppe, whose company sports a $43M market cap: "This agreement gives us immediate access to regions and countries where we lack a presence today ... In addition, we expect this partnership to completely change the paradigm at ZBB from development stage to a high growth manufacturing company."
- SPI chairment Xiaofeng Peng: "This partnership ... is all about accelerating global solar penetration through the marriage of solar plus storage. Energy storage systems are becoming vital to PV system expansion worldwide due to a number of factors..." SolarCity, SunEdison, and others have also shown an interest in pairing solar systems with battery-based storage.
Nov. 12, 2014, 3:59 PM
- Plug Power (PLUG -16.6%) bumps along near its lows of the day following its Q3 earnings miss and downside revenue guidance.
- In its earnings conference call, PLUG lowered its FY 2014 revenue guidance to $70M-$75M vs. prior guidance of $75M, and expects to ship 900-1000 Gendrive units in Q4; reaffirms its 2014 bookings guidance of $150M.
- PLUG sees product gross margins expanding to 25% gross margins by year-end 2015; sees service gross margins ~10% region during the period.
- Says it is attempting to build a new large scale hydrogen plant, and may seek partners or acquisitions.
- Also: FCEL -6.6%, BLDP -8.6%, ZBB -3%.
Oct. 20, 2014, 9:37 AM
Sep. 19, 2014, 12:46 PM
Aug. 22, 2014, 12:45 PM
Aug. 22, 2014, 9:15 AM
Aug. 14, 2014, 12:35 PM
- Plug Power's (PLUG +4.1%) Q2 results, which included revenues that more than doubled and beating analyst consensus, are sparking a rally in alternative energy stocks.
- PLUG reported a 17% gross margin in its product business and says it expects gross margin in the area to reach the mid-20s in Q4.
- CEO Andy Marsh says in this morning's earnings conference call that the company and customers seeing far fewer problems with PLUG's newer units than with older ones.
- Results impress Cowen analysts, noting PLUG's installation of the first GenKey site for Wal-Mart’s Pottstown, Pa., distribution center, and anticipating continued sequential growth through the year.
- FCEL +7.1%, BLDP +2%, ZBB +4.3%, CPST +4%.
Jul. 22, 2014, 2:31 PM
- GE's (GE -0.2%) plan to build a new fuel-cell manufacturing facility in upstate New York to improve the production of fuel cells that run on natural gas isn't lifting its own shares, but it seems to be providing a big boost to fuel-cell stocks and other alternative energy names.
- FuelCell Energy (FCEL +14.5%) is soaring after Germany’s Federal Ministry for Economic Affairs and Energy awarded it and a joint venture partner €5M (~$6.7M) in a project to increase power density and the operating life of fuel cells, which would cut costs.
- Ocean Power Tech (OPTT +35.3%) is exploding higher today with no company specific news to account for the strength, and water management solutions provider GreenHunter Resources (GRH +13.8%) is up sharply on MLP news.
- Also rising: PLUG +6.9%, BLDP +5.8%, ZBB +4.8%, CBAK +2.3%, CPST +5.1%.
Jul. 22, 2014, 8:09 AM
- FuelCell Energy (NASDAQ:FCEL) +5% premarket on news its German affiliate received nearly €5M in awards from the government to support a three-year research and development project targeting enhancements to Direct FuelCell technology by increasing power density and operating life of the fuel cells, leading to lower costs.
- The research is being performed in Germany by FCEL at an existing facility in Ottobrunn and by joint venture partner Fraunhofer IKTS at a facility located in Dresden.
- Also: PLUG +3.8%, KNDI +2.9%, BLDP +2.2%, ZBB +1.8%.
Jul. 18, 2014, 12:25 PM
- Roth Capital says it is more confident that Plug Power (PLUG +3.1%) can meet its 2014 revenue guidance and bookings target after meeting with company management.
- The firm says PLUG appears to be looking to deploy its products at four locations during the current quarter, leaving it well positioned to ship more units than expected; an increase in shipments also will raise its product gross margins.
- Roth believes PLUG is reaching a positive turning point with its large customers, but it remains concerned about its valuation and keeps a Neutral rating on the shares.
- FCEL +1%, BLDP +1.6%, ZBB +1.9%.
Jul. 15, 2014, 11:59 AM
- Plug Power (PLUG +15.7%) moves out to startling gains after FBR last night initiated coverage with an Outperform rating, with analyst Aditya Satghare expecting the shares to nearly double over the next year.
- The firm believes Plug's recent order wins at marquee customers will have "a follow-on effect," and expects them to continue to transition to hydrogen-based solutions; he estimates Plug has a more-than 90% market share in the hydrogen-powered material handling power unit market.
- The firm's $8 price target is 91% above Monday's closing price of $4.18.
- Also higher: FCEL +2.4%, BLDP +6.7%, ZBB +0.6%.
Jun. 18, 2014, 3:28 PM
- Fuel cell companies had been quiet for a while but not today, as Plug Power (PLUG +18.8%) and Ballard Power (BLDP +15.8%) skyrocket amid speculation that declining volume and high short interest could be causing a short squeeze; others say the names have been trading at recent lows and may be catching a bid in response to the recent spike in solar stocks such as SolarCity.
- FuelCell Energy (FCEL +1.2%) continues to gain after obtaining a federal grant, as the U.S. government pushes hydrogen energy to become a reality.
- Also: ZBB +10.1%, HYG +0.4%, CPST -1.4%.
May 16, 2014, 12:46 PM
May 16, 2014, 9:17 AM
EnSync, Inc. designs and manufactures energy storage and power control technologies. It designs, develops, and manufactures advanced energy storage, power electronic systems, and engineered custom and semi-custom products. Whether part of the grid power transmission and distribution network, or... More
Sector: Industrial Goods
Industry: Industrial Electrical Equipment
Country: United States
Other News & PR