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BlueDog
56 Comments
Sarah Palin: Wall Street's Candidate
Beacon Power: My Top Stock Pick for 2008
"Beacon Power (BCON): Beacon Power makes energy storage devices that use the flywheel-based technology. The financials at this company are deteriorating at an alarming rate. Recently, Beacon reported a first-quarter net loss of $5.29 million, vs. a net loss of $3.09 million a year ago. Revenues for the first quarter plunged sharply to $20,000, vs. $393,000 last year. That’s a drop investors shouldn’t ignore.
The company continues to dilute shareholders by issuing new stock to raise capital. If the company was accelerating revenues at the same time, then the new stock issues wouldn’t be such a problem. However, that just isn’t the case with Beacon. The company’s burn rate of $5 million per quarter and only $25 million in cash on hand is another serious red flag. That only gives them enough cash to operate for a year and forces them to raise more money to survive. The short sellers are leaning on more than 17% of the float in this stock, and I think they will be right.
The financials on Becaon speak volumes: market cap $117 million, revenues of $1.02 million, EBITDA of -$16.24 million and quarterly revenue growth of -94%. There’s no “beacon of light” at Beacon Power. I am giving this stock a one-way ticket to zeroville."
Source: www.stockpickr.com/pro.../
Thanks,
BD
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Investing in Tankers: Ship, Ship, Hooray?
Investing in Tankers: Ship, Ship, Hooray?
Technicals look like a possible head and shoulders pattern (bearish) is forming on FRO, neckline at $60. I don't own the name, but would be wary of starting a position here until the pattern is broken. If it is a true H&S, we can expect a breakdown past $60, a retrace to the neckline, followed by a larger dip. Higher volume on the dips, lower on the retrace. What do you think?
BD
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