Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

FLUX Begins Trading This Week. Strong Growth Projections And Intellectual Property.

Initiating Coverage on FLUX Power Holdings (OTCQB:FLUX) With Strong Buy-$8 Short Term Target

By Tobin Smith | June 19, 2012, 12:29pm GMT 10 hours ago

NBT Equities Research LLC continues our focus on ECONOMIC clean technology companies-and our stock picking hot streak we hope-with Strong Buy on advanced energy storage systems company FLUX Power Holdings, Inc..

To NBT, "economic clean tech" means clean technology that provides or creates substantial economic value WITHOUT government subsidies OR Department of Energy loans/loan guarantees.

We have followed the energy storage space for years-and when we found FLUX we found a company that has put ALL the technology under ONE roof to meet the needs of

    • Electric vehicles/transport
    • Military
    • Power Grid Management
    • Municipal/Government

For high performance LOW cost power storage. Just these markets alone represent over $40 billion in annual demand by 2015 (source: industry research).

What does FLUX Do?

Their system store excess or back up power AFFORDABLY and with 10 year plus reliability. Flux's patent pending technology extends battery system life of lithium batteries up to 5X from 200-300 charging cycles to 1000-1500 charging cycles, lowering the overall cost of ownership to a level which makes high performance lithium batteries LOWER cost than low performance lead batteries.

The killer value propositions?

#1 Back-up power/Power grid storage users get 21st century Lithium battery storage for LESS than the cost of 19th century lead acid battery storage…they get ALL the power of lithium batteries and NONE of the problems/short comings of 19th century lead acid batteries.

#2 In the lithium battery world, electric vehicle manufacturers are able to get 100% of the power storage they need for their cars, carts, fork lifts, delivery trucks for HALF the cost. Since battery systems are 20-30% of the entire COST of an electric vehicle, EVs that would cost $20,000 can now be profitably sold at $12-$13,000 with Flux systems replacing high cost systems from companies like A123.

Best of all-NO government loans or subsidies. Flux delivers high value economic returns to its customers the old fashioned way-with patent pending innovation.

How big is the market?

$Billions and $billions. The addressable market in lead acid battery replacement ALONE for such things as electric vehicles, military and municipal applications, and power grid management is estimated at over $44 billion by 2015 from $21 billion in 2010 (source Lux Research). Flux has a commanding lead in this space-they have already shipped over 14MWh of their energy storage solutions.

Power grid storage-where homeowner or commercial users store excess power from off-grid solar/wind power systems or utilities store excess power from peak-use power generators-up to $20 billion a year in 2015.

How Big Is The Sale Pipeline?

Flux is positioned to achieve in excess of $50 million in sales in FY2013 (June 30, 2012 to June 30, 2103) and close to $150 million in sales in FY 2014 (source-company estimates).

How deep is the Intellectual Portfolio?

DEEP.

Patent Pending
JANUARY 22, 2010

Battery Design

Patent Pending
April 1, 2010

Power Control Module for Battery Pack

Patent Pending
April 1, 2010

Power Control Module for Battery Pack Utilizing Thermal Sensors

Patent Pending
June 30, 2010

System/Method for Current Management Within a Battery Mgmt. System

Patent Pending
June 30, 2010

System/Method for Controlled Charging/Discharging of a Battery Pack

Patents in process

System and Method for Determining and Recording Battery Life Cycles

Patents in process

System and Method for Determining Battery Life

Patents in process

Specialized Battery Management System Communication Methods

Patents in process

Battery Design Containing a Visual Display Mechanism

How experienced and accomplished is the management team?

Flux's management team has over 80 years of high tech and transportation industry experience and has pioneered many of the breakthroughs in advanced energy management.

Summary

Flux Power® Holdings, Inc. (OTCQB: FLUX) and its operating subsidiary Flux Power, Inc. ("Flux Power") just completed the reverse acquisition of Flux Power Holdings, Inc. (formerly known as Lone Pine Holdings, Inc.), a Nevada corporation, and initiation of trading on the OTCQB exchange under the new symbol "FLUX". Trading started yesterday.

NBT will deliver our complete equities research report shortly, but we wanted all our NBT members to get an early start of accumulating shares in FLUX.

Discounting 6x$150 million 2014 sales at 25% margins gets us to a minimum $8 target for FLUX shares or 4X upside from current valuation.

The company has a VERY deep pipeline of sales and client deals that will serve as multiple catalysts for the visibility of the company as a leader in the advanced power supply space.

Time to buy these shares? NOW…before the news and coverage start to hit the tape.

About Flux Power

Description: home

Flux Power designs, develops, manufactures and sells cost efficient advanced energy storage systems. Incorporated in October 2009, Flux Power began shipping prototype products in the second quarter of 2010 while continuing to develop its intellectual property portfolio. Currently, Flux Power's product offerings include batteries in various sizes and forms, packaged modules, fully tested and validated advanced energy storage systems and various system accessories. These accessories include: stand-alone battery management, stackable chargers, programming software and display systems. Flux Power sells modular advanced energy storage products through distributors such as Dukes Garage, Electric Motor Sports, MCelectric, Jungle Motors and EV America. These customers benefit from Flux Power's proprietary system and cell technologies, which greatly extend cycle life and improve system performance. Flux Power's systems are also highly cost efficient proving less expensive than lead-acid technology over time in most applications.

Click here to view Flux Power's Investor Presentation.