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$10.17 0.15 (1.50%)
5/16/2008 4:00 PM

Raser Technologies, Inc. (RZ)

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The Company operates as a technology licensing and development company. Its segment focuses on improving efficiency and power density of electric motors, generators and their associated power electronic drives and controls.

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Avatar IBDFool4U (93.53) Submitted: 1/28/08 2:49 PM : Underperform Start Price: $10.99 RZ Score: 13.50

Ok, let's do some quick math:


Raser is set to run out of cash in 1 yr. Assuming NO cost of sales (which is unrealistic), they would have to sell $15 million of licenses this year to simply break even. To justify current market cap at a reasonable P/E of 20, they would have to make $35 million this year (Again, assuming no cost of sales). That's a lot to expect from selling licensing fees in a competitive market.





Also, company has 29 employees. After subtracting out top management, sales, HR, IT, hourly employees, that leaves maybe 5-10 people actually developing products.





So you have a company that should run out of cash in less than a year, needing to sell $35 million IN LICENSING FEES, after sales of $250,000 last year, based off of 5-10 guys research (at best), heading into a recession.





Stock may be pumped up in the short term, but as a former mechanical engineer (with extensive knowledge of motors and drives), EASY UNDERPERFORM.

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Avatar fouFool (< 20) Submitted: 2/20/08 5:30 PM

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I'd just like to know why you think raser is running out of cash and how the backing of Merril Lynch fits into this?

I also think a ressession will help green energies such as raser and maybe even help America become more dependant on the cheaper, green energy vs foreign energy.

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