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BCON and ACPW - Old technology, new promise

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December 10, 2010 – Comments (5) | RELATED TICKERS: BCON , ACPW

I am thinking about buying both of these stocks.  While BCON has more risk (it just got an extension to March before being delisted), it also has tremendous promise..This is a very cool green alternative to battery power storage.  BCON is due to establish a plant early next year.  If they can pull it off, I believe the stock will soar.  Given its current valuation of .235/share, the downside risk is relatively low.  To save thier listing, they must get the share price up to $1 by March.  That would be a 300% gain.  The generator can be built in 6 months time or less and is already in process.

ACPW is a direct competitor of BCON.  Better positioned with a good upward trend in '09 and '10, but still 1/2 of its historical 5 year level.  There is a significant need for backup power supplies that are clean, efficient and small.  The flywheel technology accomplishes all of this.  ACPW also has a product for use with solar power generation and residential use.  It is well positioned for the healthcare industry and today inked a contract with a law enforcement agency.  Given what Toshiba just went through, and projected oil prices again well over $100/barrell by 1Q 2011, there is a need for the products.

Could this technology take pressure off a deteriorating power grid and make it more difficult for terrorists to target/disrupt communications by sabotaging power plants?  Might also this technology be used in automobiles...significantly reducing weight  and the amount of space needed to store batteries?

5 Comments – Post Your Own

#1) On December 10, 2010 at 3:45 PM, LookMomBoogers (95.96) wrote:

I actually own shares of ACPW and have been pleased with the recent rise, the rise happened so quick though that I'm pretty tempted to take the gains and watch to see if it goes down. I know they had their first profitable quarter ever but, I'm looking at 150% gains and thinking I should sell at least 2/3rds of my shares... Just my thoughts, excellent post.

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#2) On December 10, 2010 at 4:38 PM, Mascalzzone (< 20) wrote:

BCON is suported by government, so maybe they can pull it off

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#3) On December 21, 2010 at 4:54 PM, LookMomBoogers (95.96) wrote:

BCON is on the verge of being delisted.

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#4) On December 22, 2010 at 2:25 PM, creek138 (99.15) wrote:

I'm a BCON follower and have a pretty sizable stake in my trading portfolio. Further, I'll be looking to buy more soon.

BCON is unprecedentedly low, especially with having a product almost ready for market. I envision this as a mini ISRG, we are getting in right at the entry point for a market killer -- although I'm mixed on whether their market is smaller or larger than ISRG's.

Regardless, this one is so cheap that I have to agree with you on risk/reward.

The downside: volatility can swing hard and swing fast at this price. It is painful when it goes down quickly and so sudden that you won't have time to get out without suffering a detrminental loss. This may change if they move to OTC, but there of course are more concerns when they move to OTC.Additionally, we will likely see a reverse split sometime in the near future. This company will shed more money before it makes money. You are more likely to lose money on this one before you make money.

The upside: product is coming to market. We will finally see what the financials will do with a viable product. We likely won't see full benefits on the statement until late next year.Also, the government is backing this one and the debt BCON has outstanding is favorable to them. Additionally, the stock price is so cheap now that if you get a small stake, losing it all will not hurt you significantly, but there is good possility that you may see a 3 to 4 bagger in the mid term. What proof do I have to support this claim? First, the stock popped to 2.00 a few years back on breaking ground of the plant. Second, financials havent changed much since then - # of shares has tripled, but stock price has declined to a sixth of what it was. Third, there is great possibility that they will receive more favorable loans if the first plant performs as expected. Cheap financing can mean cheap expansion, which is really what BCON needs early on to get and stay profitable. Additionally, due to "Smart Grid" proposals, regs are changing towards BCON's favor. Further, BCON is working on a latest and greatest flywheel model, so we should see gains in efficiency and cost/pricing in addition to their already competitive product. And lastly, what I've seen from this latestshare pricing seems more favorable to us common stock holders than previous offerings - I am, however, concerned on how this will effect their ability to become profitable in the future.

My opinon: buy a small stake and then buy small stakes on the dips to keep your averaging near the bottom of the stock price. Then decide whether you are a short term investor looking for quick gains or a long term investor looking to multibag in this stock - and stick to whichever path you decide to take.

 

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#5) On February 09, 2011 at 3:36 PM, piggy60 (< 20) wrote:

I bought into BCON...4000 shares @$0.26.  I've seen the price go from $0.235 to $0.31.  The NY plant is up, running at 40% capacity, and performing as expected.  Chicago is next.  I also bought 1200 shares of ACPW as a hedge.  ACPW seems to have more of the international market.  It has made some big signings of late (the latest with a German chip maker), and the share price has fallen...what's up with that?  I'm not sure that I will wait for BCON to get delisted before selling, but I'm not overly concerned about it going to OTC either.  The company is here to stay.  I'm also thinking that with the emergence (albeit forced) of the electric car, could this technology be adapted to ultimately expand the range and reduce the size and weight of the current battery system?  If that happened, this thing might explode.  Further, the flywheel technology can deliver faster delivery of power, so perhaps a useful concept for automotive recharging?  I think the delisting date is 3/15 ... I will be keeping a close eye on the companys progress.  It's earnings report is due ahead of this date.  If they could manage a near break even or profit ... NASDAQ may give them another extension.

Sometimes I buy things because I believe in the product or principal.  This is one of those times, but admittedly, it is at a high risk, and I will have to wait a long time.  As for BCON, if it could get legs and just go back up to $2 (not that unreasonable expectation) it would be a 100% return...keeping my fingers and toes crossed.

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