Small Cap Strategist is published by Crystal Equity Research an independent research resource on small capitalization stocks. Follow along as we discuss the most recent trends in the small-cap sector, investigate interesting companies and pan a few not-so-promising stocks.
Computing (private) is
the most recent addition to the Efficiency Group of our Mothers of Invention
Index of energy technology innovators.The
company provides computing capacity to financial institutions, entertainment
developers, pharmaceutical researchers and others with intense analytical requirements.The second product in the Qarnot portfolio is
called the Q-Rad and it has nothing
to do with computing-well at least not directly.
is made of the need to store data in our increasingly digital world, but computing processes are also
intensifying.DreamWorks Animation has
reported that every Shrek 'digital cartoon' movie took roughly twice the number of
hours to design than the previous film.In 2001,
the first Shrek movie required about five million computing hours, but
Shrek 2 required over 10 million hours.The third and fourth films in the series required 20 million and 50
million hours, respectively.The phenomenon of doubling computing requirements
has been labeled ‘Shrek’s Law.’
proliferation in computers to comply with Shrek's Law is creating an energy problem.Many organizations maintain ‘server farms’ or
they contract with companies like Qarnot to provide computing capacity.Thousands of computers rowed up together
generate quite a bit of heat and demand excellent air conditioning to keep things
running smoothly.For every 100 watts
required to run a computer, about 50 watts is needed to cool them.
smart people at Qarnot have found a solution for their computing customers-harness
the heat from the computers and repurpose it.Qarnot distributes its computers throughout buildings to be used as
radiators or heat sources.The company
has designed a ‘digital heater’ that on the outside looks like a radiator, but
inside is a multi-processor HPC server.An
illustration of the Q-Rad can be seen on
Qarnot’s corporate website.Cost savings
from reduced cooling costs are passed along to Qarnot’s computing customers and
lucking apartment dwellers get free heat.
Founder and CEO, Paul Benoit, participated earlier this week in the Europlace
International Forum.Not surprisingly,
his presentation was followed by numerous questions about data security,
temperature controls and seasonal flexibility.The company has found viable solutions for all these concerns.The company has landed some interesting
customers, including PNB Paribas.
is still a relatively small company with just over $1.0 million in sales per
year.In my view, this is a company well
worth watching.If the Shrek Law holds,
we can expect ever increasing pressure to solve the twin problems of energy
consumption and heat generation that accompany computers. Qarnot has a good head start with one novel