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Varchild2008 (85.44)

Southwall Technologies Gains Access to Chinese Market in Energy Saving Windows

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May 29, 2008 – Comments (3)

Southwall Technologies (SWTX.OB) just this morning that effective immediately they will be partnered with KBM to distribute XIR, energy saving Glass Windows, throughout the Commercial Window Business of the Chinese Market.

To keep it short....    This news has me stoked!   Going to raise my stake in SWTX dramatically from 320 shares to 400 today.

3 Comments – Post Your Own

#1) On May 29, 2008 at 8:23 AM, Varchild2008 (85.44) wrote:

Clarification/correction:  XIR is a FILM that manufacturers can apply to glass windows for commercial buildings which helps cool the building thus limiting Air Conditioning Costs.

Suffice it to say, this is the 2nd major Partnership in a short time showing that SWTX's transformation approach is working.

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#2) On May 29, 2008 at 10:27 AM, Nainara (< 20) wrote:

What an interesting company recommendation. CAPS really needs more posts like this rather than beating up on the same tired few lizzards. Most of these interesting otc microcaps fly way under my radar.

Judging from the stagnant historical revenue and income, some radical change needs to happen within this company to make it an attractive prospect. Perhaps a chinese distributor is just what the doctor ordered. Generating revenue in the strengthening RMB would definitely be a bonus. 

Regardless, until the company proves that a move into the chinese market will drive its earnings forward, I would consider it to be a highly speculative stock. I'll keep an eye on this one and wait for a positive quarterly earnings report to demonstrate that there's real money here before seriously considering it as a buy. Might be a bit late to the party, but I much prefer to play when I know that the decks are loaded in my favor.

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#3) On May 29, 2008 at 6:56 PM, Varchild2008 (85.44) wrote:

Nainara,  
I appreciate your interest in my blog and interest in microcaps.

Waiting on this company is fine but it's last earnings report WAS a positive earnings report.  The story was written starting from when SWTX gave up its LCD Display product lineup, closed down 2 manufacturing plants, and yet still managed to increase revenue by 1% in its other product lineups.

I suggest looking at Southwall's website and going through their press releases.

But, you are SMART to wait on this stock.  At some point the speculation will ease and the price should get cheaper just prior to the next earnings report release.

I don't think I'll be buying any more shares of SWTX until after their next Earnings Report.  I bought on this news because I knew a good jump would happen.  I got in at $1.31 and it rose to $1.40 (a new 52 week high was reached at $1.44).

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