Beacon Power Corp. (BCON)

Value story:

Current valuation: about $141mil. = about $1.6 per share

Next milestone: to bring the first two 20MW Frequency Regulation Plants

online by Q408/Q109

Basic Business Model:

- Cost to build 20MW plant: $30mil.

- Annual Earnings per 20 MW plant: $8mil.

- Expected 10-year value (PE=10) per plant: $50mil

- Expected number of plants to be built thru 2010: 8-12

- Expected company value in 2 years PE=10: between $400mil. and $600mil. ($5.6 per share - $8.40 per share)

Additional upsides:

- Market might be growing faster than expected, opening of Canadian- and

South American Markets

- Increased production capacity may increase the number of plants that can

be built per year

- Possible licensing or technology sales to Europe and Asia

- Rising energy prices will drive up the cost of conventional frequency

regulation services increasing operational margins

- Depending on growth rate and size of opportunity valuation multiple could

be larger

- Additional efficiencies of scale will lead to lower costs per plant,

possibly increasing 10-year plant value to $60mil.

Downside risks:

- Possibly ongoing patent issues, maybe settlement needed

- Possible performance, operational problems at the first plant

- Entry of new competitors, or different technology

- Possible overall reduction of market potential because the faster response

provided by the new tech. may reduce the amount of frequency regulation

services actually needed

- Question how additional capital will be raised = possible dilution

Excellent product, with no competition. BUY BUY BUY

Speculative play on a power service company. If their bid to join the NYC grid proves successful, the sky is the limit for this company and its brethren. We don't necessarily need MORE energy, but we do need BETTER energy, and this company's products promise to better regulate the electric grid to prevent surges and drops with an efficiency and speed that present regulators lack. Big things are in store for this company.

looks good

Watch this stock light up New York City!

I mean....c'mon!

C'MON!

COME ON!!!!!

This company has deals with Ohio and is in the process of getting a huge deal with New York City. With the overusage of power grids, especially in the NE where this company is headquartered, the constant threat of hurricanes, and the "Green Revolution", this company and its RELIABLE flywheel technology is poised for success.

Get in now, $3 seems cheap.

Read my blog !

Member of the "Mini-Cap Monsters."

Jump into this and EEE. Let them duke it out. And us, well we ride the profit train.

Companies with products like this are going to be needed to provide a more even flow on the grid from electricity providers like solar and wind that are variable. The bigger Solar and Wind get the more need there is for companies like Beacon

This stock is in the utilities sector of the market and in the electric utilities industry. This is another stock that should do well with the high price of gas and people again have to have power to run things around the homes.

Designs, develops, and commercializes advanced products and services to support stable and reliable electricity grid operation in the United States.

An infrastructure/renewables play. Beacon makes flywheel-based load-leveling equipment.

Their product is soemthing that will be needed soner than thought. Helps to save energy produced and massive solarpanels and windmills coming as oil increases.

Their technology works. The key is that the massive flywheel spins in a vacuum chamber and rest on a meg-lev bearing. Very low to no friction means efficient operation and low maintenance. And to my knowledge, no competition in this niche.

power play

Beacon has found a way to store electrical energy in form of mechanical energy between times of low and high demand, which means that the expansion of utilities for the power generation can be delayed, and the problems of blackouts may be lessened.
Also the rotating storage units can be used instead of batteries, saving the environment from potential chemical refuse.
It's a startup, but the potential is there...

Better than expected 3rd Qtr results crossed with sooner than expected plant announcements will get the stock moving - regardless of overall value.

finally