D. McHattie

How PHEVs and EVs Will Sabotage America's Drive for Energy Independence

"The hypocrisy is appalling."

Welcome to the human race.

Alternative Energy Storage: Cheap Continues to Outperform Cool

I'm very torn right now.

I have some money in this sector, consistent with the theme of this article and I also have some cash on the sidelines.

I like the energy storage sector but feel that the broader market is overbought.

I feel that a correction in the broader market will pull energy storage companies down with it. But, on the other hand, the share price of these energy storage companies should get a significant boost form the ARRA grants and the A123 ipo.

I just feel that a good trader could really cash in here over the next couple months. I wish I was one.

Energy Storage on the Smart Grid: 99.45% Cheap and 0.55% Cool

Another great article, John.

But I noticed that, though you mention ENS in the article, you did not disclose your position in the company as you usually do. Was that an oversight?

Auto Batteries: Short Term Revenue Growth Favors Lead-Acid by 6 to 1

Another great article, John. Please know there are many of us who appreciate your pragmatic cost-benefit approach.

With that in mind, I have a question for you about Exide. I have seen that you prefer to talk technology and market economics and typically stay away from discussing a particular company's balance sheet, income statement, or other company-specific financial elements.

As I'm sure you're aware, the XIDE has been on a real skid lately and I'm wondering if you'd care to comment. I know they had a really bad quarter and the release of those results would explain a significant, immediate decline. However, XIDE has been falling consistently for several weeks now and it makes me wonder if there is something going on behind the scenes that I have missed.

It occurs to me that with the advantages to this market that you describe and the way the stock has been beaten up, if Exide was able to get their house in order this could be one of the best opportunities available today. Or, if they suffer critical mismanagement, it could be time to walk away.

Thanks again for all your great work.

The Obama Fast Track for Hybrid Electric Vehicles (HEVs)

You open up a real kettle of worms when you introduce the moral implications of sub-optimal resource allocation.

As you state, it is not as simple as just determining which technology saves the most fuel and then supporting that technology to the exclusion of all others. I fear that our electorate and its government may follow this oversimplified decision-making process.

Only free markets are capable of making the subtle distinctions between alternative uses of scarce resources.

In an era where free markets have been much maligned and much blamed for our economic decline, it is more important than ever that free markets be restored and preserved.

Not to get to Randian, but you have made an excellent case for the moral superiority of free markets.

Anyway, thanks for taking the time to share your thinking with us, John.

Smart DOE Battery Manufacturing Grants and Dilution for Dummies

"[I]t will be a target rich environment for investors that are willing to make a long-term commitment to the energy storage sector."

To really oversimplify your message, are you proposing that investors 'buy the dips'?

While the awarding of grants are likely to be cheered with increased stock prices, the additional stock offerings these grants will necessitate are likely to drive prices down due to fears of dilution. So the price action on these companies could be a little bit wild.

However, you argue, fears of dilution are just fears and the net combined effect of the grants and stock offerings is likely to be positive.

Therefore, 'buy the dips' and hang onto your hat?

As a summary of your message, John, is this close?

Why Pure Play Energy Storage Companies Could Double for Investors

John, I wish I could just invest in this sector and not have to pick and choose companies.

There is no ETF comparable to a GDX or a PBW for the advanced battery sector, right?

You have suggested taking a small position in each of the 12 companies in your storage device maker table - can you think of any other way for the amateur to get involved without him having to try to become an electrical engineer/CFA?

Huge Incentives for Energy Storage in Today's House Bill

Paultaut, while First Solar (FSLR) has production facilities in Germany and Malaysia, it also has production facilities in Ohio. Also, its headquarters are in Tempe Arizona. That probably makes it American 'enough'.

You don't have to exclude foreign companies, you just have to subsidize American firms. You can subsidize your own industry as much as you want as long as the subsidized product is only sold domestically.

Huge Incentives for Energy Storage in Today's House Bill

Thanks for the update, John. I was aware that the bill would contain significant benefits for 'alternative energy' companies but hadn't read anything that drilled down into the details as you have done.

I actually dipped my toe into axpw this morning, a company I would never have heard of if not for your writings. Don't worry, my position is small and I won't come looking for you if things turn sour!

D

Lead-Carbon: A Game Changer for Alternative Energy Storage

Thanks John - that's a good explanation. I've got you on my watchlist so I look forward to your updates as progress is made or bumps in the road are discovered.

Lead-Carbon: A Game Changer for Alternative Energy Storage

John, not sure if you're still responding to comments on this article. But there is 1 issue that continues to trouble me about this company - why has it taken so long for this technology to reach market?

I'm not an electrical engineer so my understanding of the product development lifecycle is limited but it still seems like an awfully long period of time that they've been 'testing'. I mean, the company went public almost 5 years ago now and it seems they have little more than a 'memorandum of understanding' and the odd strategic alliance.

I would have thought that one of the major makers of lead acid batteries would be using their technology for existing applications by now, never mind prospective use in alternative energy.

What gives?

Lead-Carbon: A Game Changer for Alternative Energy Storage

The best articles always seem to have the best discussions. Interesting that John Lounsbury is here commenting on your article because his articles similarly produce very intelligent discussions.

Thanks for sharing your very good work with us.