The Electric Car Penny Stock That You Need to Know About
Battery power — as you know it — is officially dead. But one electric car penny stock stands to change all that, alongside the fortunes of select few investors in 2010.
The nickel-metal hydride battery, which has long been the standard in hybrid electric vehicles, is fast becoming more obsolete than the record player collecting dust in your attic.
In fact, the entire battery industry was jolted into a veritable age of discovery and advancement only a few short years ago as higher gas prices vaulted once-maligned hybrid vehicles to the forefront of Big Auto’s to-do list. The Toyota Prius soon became the flagship hybrid model, prompting government tax breaks — and waiting lists at dealerships across the U.S. But there has been one big problem…
The nickel-metal hydride batteries in many first-generation hybrid vehicles are adding extra weight and space to the design. According to a 2010 Global Business Intelligence report, nickel-metal hydride batteries are used in 97% of hybrids sold today. Of course, the extra bulk — and the heat generated by these traditional batteries — adversely affects the mileage of hybrid electric vehicles.
The solution to the inefficient nickel-metal hydride batteries is the lithium-ion battery technology. Lithium-ion’s offerings are clearly superior: They’re lighter and smaller and pack more charging power. Lithium-ion battery technology isn’t just superior — the entire industry is readying for exponential growth. The hybrid category is growing, with lithium ion batteries set to make up 60% of all hybrids sold by 2020, according to the very same GBI report.
It is becoming increasingly clear that the battery industry is ripe for booming advancement. If you want to take advantage of a powerful trend such as this by investing in small-cap players, it’s important to make the correct investments — and to ask the right questions…
Two Questions Add up to Electric Profits
Now that we know the trend toward lithium-ion batteries is the real deal, we have two important questions every investor should ask. First, what companies are successfully marketing and manufacturing these new higher-tech batteries? And just as importantly, where will these batteries be made?
Keeping these two important questions in mind, we’ve found a small, growing company that offers a wide variety of advanced lithium-ion batteries. More importantly, this company has built its growing franchise in the manufacturing juggernaut of the world: China.
Our small-cap star in this niche is a part of a two-pronged play, poised to profit from the electric vehicle craze, as well as China’s enormous growth and cheap labor force. China is quickly chipping away at Japan’s dominance in the advanced battery production industry, offering our small-cap pick a distinct growth advantage. Get in on this play now and you could very well ride the technological boom into a new era of hybrid vehicles and plug-in electrics.
The company makes and sells its rechargeable polymer lithium-ion (PLI) batteries for use in a variety of products, including electric cars, motorcycles and even laptop computers and other electronics.
Yet despite the company’s impressive growth, its price-to-earnings ratio remains below 12. This is surprising, considering that competitors such as A123 Systems Inc. (NASDAQ: AONE) and Ener1 Inc. (NASDAQ: HEV) have yet to maintain profitability. The bottom line is this stock is grossly undervalued — especially when compared with its peers.
For obvious reasons I can’t send the name of this electric car penny stock to all 400,000 Sleuth readers – it just wouldn’t be fair to the folks who subscribe to our premium Penny Stock Fortunes service. But I can offer you your own subscription to PSF for less than the cost of a monthly cup of coffee at Starbucks. If you’re interested in taking advantage – and getting all of my small-cap stock picks – just visit the Penny Stock Fortunes website…
April 7, 2010
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