Friday, November 21, 2014

Lithium Economy

A factory so large, out of its doors will pour enough lithium ion batteries to double battery production within the next five years.  That is the goal of Tesla Motor’s (TSLA:  Nasdaq) at its planned lithium ion battery plant in Nevada.  It seems quite ambitious to anticipate growth of that magnitude for battery powered cars, but let’s give Tesla sales and marketing geniuses the benefit of the doubt.  After all increasing consumer demand is underwritten by government policies offering incentives for electric vehicle ownership as well as regulations requiring fuel economy and emission reduction. 

End-user demand might not be Tesla’s most pressing issue.   Lithium batteries require lithium and the volume of batteries that Tesla is planning to make begs for ‘alot’ of lithium.  Global lithium production is near 170,000 tons per year mostly from Chile, Argentina and Australia.  So far lithium production has been met demand, but that could quickly change with such grandiose new production capacity coming on line.

Tuesday, November 18, 2014

'Industrial Plasma' of MagneGas

Alternative chemicals developer MagneGas Corporation (MNGA:  Nasdaq) is posting another guard at the gate.  The company recently filed a patent application to protect new enhancements of its plasma arc technology and gasification system.  Plasma is any gas taken to a whole new phase through extremely high temperatures.  For perspective the sun is actually a very large ball of plasma.  Here on Earth MagneGas is using its proprietary system to gasify carbon-rich liquids such as municipal wastewater to produce hydrogen gas for industrial applications and vehicle fuel. 

Friday, November 14, 2014

Bargain Green Stocks: AEIS

Everybody likes a bargain.  Investors really like a good cheap buy.  A review of our four alternative energy industries revealed several stocks trading below industry average multiples of forecasted earnings.

 
The first week in November 2014, could have been a turning point for trading in shares of Advanced Energy Industries, Inc. (AEIS:  Nasdaq).  The company reported flat sales in the quarter ending September 2014, compared to the same quarter last year, but delivered higher earnings by 15%.  Investors were thrilled with the results, bidding the stock higher in the first week of trading following the announcement.

Tuesday, November 11, 2014

Bargain Green Stocks: KAI

Everybody likes a bargain.  Investors really like a good cheap buy.  A review of our four alternative energy industries revealed several stocks trading below industry average multiples of forecasted earnings.

 
A couple of weeks ago shares of Kadant, Inc. (KAI:  NYSE) registered an particularly bullish formation  -  at least from a technical standpoint.  A ‘triple top breakout’ was formed in a point and figure chart, suggesting demand for the stock outpaces supply.  Given the new momentum that has developed, the stock could reach as high as $52.00, representing 25% upside potential.

Kadant is trying to clean up the paper production industry with more efficient virgin pulp processing equipment and recycling solutions.  The company also makes biodegradable absorbent granules from papermaking by-products for agriculture, lawn, ornamental and industrial uses.  The company earned a 10.8% operating profit margin on $391.7 million in revenue in the most recently reported twelve months.