Mass Megawatts: On a Solar Track

Mass Megawatts Wind (MMMW:  OTC/PK) has wind in its name, but solar on its mind, at least the minds of its development engineers.  In early May 2021, the company announced durability tests to prove its new solar tracker can hold up to erratic or high wind conditions.  The company expects to offer the tracker in markets that sometimes experience tropical storm conditions.  Testing the solar tracker in wind tunnels will help verify the design effectiveness.

The solar tracker is intended to help manage solar panels for maximum exposure to sunlight.   The design is based on a proprietary mechanical innovation to limit loading on the tracker that can occur in extreme weather.  A patent application is pending.

Mass Megawatts is counting on the solar tracker to open new addressable markets.  The company’s engineers tout their low-cost, efficient design to make it appealing to solar power producers who are always profit conscious.  If the wind tunnel tests are favorable, the company will have additional points for its sales pitch to solar power producers in hurricane prone regions.  Indeed, the company has plans to open a sales office in Florida.

As fascinating as the new product might be to solar industry investors, this company and its stock represent quite a bit of risk.  The company is no longer disclosing its financial position through reports filed with the Securities and Exchange Commission.  Consequently, investors have no way to verify whether Mass Megawatts has the financial resources to get its new product into the market.

The company has claimed two planned installations for its solar tracker both in Pennsylvania, but does not name the customer or any details of the system value.  Mass Megawatts claims the solar tracker market could reach $3 billion by 2025, suggesting there is a large addressable market ahead.

Management appears to be putting the company’s future on the line with its solar tracker system.  The company has announced it plans to change its corporate name to Mass Megawatts, Inc., dropping the reference to wind power.  To be certain, the company will still pursue some wind power products and services, but it is the solar energy sector that has management’s attention.  This company’s technology might capture investor’s attention, but the stock should still be called a stinker.         

 

 

Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.