Comverge, Inc. (NASDAQ:COMV)
The Company is a provider of clean energy solutions that improve grid reliability and enable utilities to increase available electric capacity through reduced energy consumption.
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Cramer election pick. COMV will work no matter who wins the election.
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comverge lower energy use
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Energy efficiency play. Growth buy.
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Trading toward a low is always good. Smart technology. Looks like investors got nervous and the bears had their way with them. With an established presence in the field and a proven technology they should continue to post positive numbers. Now if we could only trade in the "M" for an "N". It's hard to say "Comverge". Try it...Comverge...
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Comverge is a leading Clean Energy company that provides innovative solutions to peak challenges through Demand Response. With over 500 U.S. utility clients and 4.5 million devices installed, Comverge “smart megawatts” technology is widespread and in use across the nation. Our "pay-for-performance" programs provide capacity that can reduce emissions, eliminate line losses, increase reliability, and defer generation and transmission acquisition.
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smart electric grid tecnology
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As of close of business on 2/20/08, this was a 5-star Morningstar stock trading at less than half of its Morningstar fair value.
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energy efficency is vital
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New technology to decrease use of power on the grid during peak periods. Company pays businesses to allow their air-conditioning to be automatically turned off for short periods during peaks. The utility company's pay Comverge for their services.
During peak periods, the cost to utilities of providing power can exceed $50 per megawatt hour, or more than 10 times the usual cost, Comverge says. During extreme peaks, the cost can soar to $1,000 per megawatt hour.
Analysts expect Comverge to post a profit in 2008.
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Converge Inc. has shown an outperformance to S&P since middle of May. The sector of clean or green industrial stocks is performing well. I haven't seen any big negative news or rumors. I think it will continue to outperform the S&P into the new year.
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Timing of IPO hurt, but This co. has a head-start in an important niche, and their market is very much more than niche!
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Gosh, a must short - trades at 20-25 times revenues and Q1 2007 revenues declined to $5.1 mil from $5.6mil in Q1 2006.
Who are the idiots who are buying. Will short big time around $40.
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great black out play for the summer
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"fresh off IPO" is new for me, but my utility convinced me to have one of these installed on my AC last year (giving me a credit). So, the consumer, untility and COMV all win!
Plus, emissions regs will only get tighter -- seems to be a hot-button issue for the '08 election that BOTH parties are embracing.
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Conserving power is a much better economic choice for utilities than building new power plants, especially with increasing global warming regs.
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Successful IPO in a hot market
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