Active Power, Inc. (NASDAQ:ACPW)

CAPS Rating: 4 out of 5

The Company designs, manufactures and markets power products that provide consistent, reliable and cost-effective ride through, or temporary, power for the majority of power disturbances, such as voltage sags and surges.

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Player Avatar ggoekler (31.49) Submitted: 2/7/2012 3:46:41 PM : Outperform Start Price: $1.00 ACPW Score: -24.08

Give that Income statement and balance sheet a looklowering their debt to equity ratio, exponentially increasing profits, plant assets growing while liability shrinks, etc...wish i bout this stock earlier. I still think theres a killing to be made here

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Member Avatar ta2122 (91.61) Submitted: 2/7/2012 3:59:16 PM
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"lowerlooking" and to "bout" a stock cannot be overlooked. One of the key principles of evaluating a stock.

FORGET THE FACT THAT THEY HAVEN'T MADE MONEY SINCE 2006....

They are lowering their debt to equity ratio because they don't qualify for receiving more debt.

Would you issue debt to someone who can't afford to pay you back??

Member Avatar ggoekler (31.49) Submitted: 2/7/2012 7:42:30 PM
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calm down. no need to have a freak out.

No they haven't made money since then, but the company has expanded a lot. take a look at the income statement. the past few years the amount lost has decreased exponentially.

Member Avatar piggy60 (< 20) Submitted: 2/15/2012 10:02:12 AM
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ggoekler ... I agree with you that I think there is a light at the end of the tunnel. This company doesn't look like it will go out of business. The issue is raw material costs have increased. Also, you mention growth, but remember they have closed most of their overseas operations ... not exactly expansion. Today, the stock tanked to $.77/share. I think the slide will continue, but at about .65, this looks good. By year end, I can see ACPW moving back up to near $1, and that would be a nice 25-35% return. That said, I'd pay a lot of attention to earnings next quarter. I'd also like a further explanation as to the abrupt departure of their CEO. Why is a company that lost so much money under his leadership needing to pay him $0.02/share? It makes me question the competence of the board a little.

All this said, I have to go back to the product ... and what a great product it is. I can see it having an application for automobiles (electrics and hybrids). The only issue is weight and size. If they figure that out and get linked up with an auto application, this company will really soar. It is definitely 1) highly speculative, 2) an industry leader, 3) potentially profitable.

If I were to play ACPW, I'd do it in the 60's or I'll wait and see where the chart is trending ahead of their next earnings report. If they are trending flat or a little up, I'm in, if not, I'm not. If you look at the chart from 10 days ago, it was flat and trending down. I had a short buy in for $.88. It never got there that day, and I'm happy. I won't get "excited" about this company until one of two things happens, either they prove they can turn a profit, or management guides higher. 2012 will be a bumpy year, and by May, I'm looking to be in a 100% cash/gold position. I don't trust what the market is set up to do this summer.

Member Avatar Teacherman1 (46.89) Submitted: 2/15/2012 10:43:17 AM
Recs: 0

This has been a day trader game for awhile, but if you are a longer term investor, then you can take advantage of this to buy in at a low price to hold.

Their primary problem in the past was to get acceptance for their product. They took care of that.

Their problem now is volume. They are taking care of that.

The CEO was making too much, and his departure was not his idea, so they had to pay off his contract. That is almost done.

Their market is primarily back up power for data centers, with some small utility peak power back up.

One thing they are doing is using their engineering expertise to custom design their product to meet the requirements of the customer.

The only thing needed is time.

As far as closing most of their Eurpoean operations, I think that was primarily Germany, because that was the most competitive market, and they would have to sell for less than they wanted to get sales.

Their year end report did not contain any new negative information that was not expected, but it happened to come out on a day when the market was in a negative mood, so a lot of the day traders dumped.

The Q1 report will also likely show a loss, but after that, it should start to pick up

If you want to stick a toe in, now is the time. If you are looking for a short term trade, then you may get it a little cheaper, but probably not much.

I am long on this stock, and am in at $0.76 myself, and will buy more if it dips lower.

JMO and worth exactly what I am charging for it.

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