UQM Technologies, Inc. (AMEX:UQM)
The Company and its wholly-owned subsidiary UQM Power Products, Inc. are engaged in the research, development and manufacture of permanent magnet electric motors and the electronic controls for such motors.
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I work with the company on sizing products for next-gen OEM and aftermarket solutions. Good products which seem to align with market needs.
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low price growth
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with the auto market shifting to electric/hybrid vehicles uqm's strong, reliable products are well positioned.
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We are really breaking out the speculative plays over the last few months and UQM Technologies is no exception to that list. UQM has not been a profitable company since its inception, something usually required to get onto my buy list. Despite this UQM has a few contracts in place and appear to be solidly growing both revenues and margins.
UQM has both goods and bads, so we'll take a quick look at each. Revenues are slated to double for the next 2-3 years which by itself is staggering. Margins should effectively move over 43% within the next two years and profitability should occur in 2011. My 2012 estimate is for 13c-14c. UQM is also swimming with 74c a share in cash but I'd be putting an asterisk next to that figure.
On the downside UQM has been diluting the hell out of shareholders in order to raise cash. UQM brought over 9M shares to market in the last 18 months which is staggeringly bad. They have a propensity to also burn through cash quickly, thus 74c in cash will only last them 1-2 years.
Still, their revenues growth and contract growth compounded with higher margins looks like a recipe for success or if anything, a recipe for a buyout. I'm placing a limit buy at $1.56 with the intention of setting this into the UltraLong portfolio and forgetting about it for a while. I really feel UQM has the potential to reach $6.50 a share within three, maybe four years as the electric vehicle phenomenon really catches on. In the meantime just deal with the hiccups and enjoy the ride.
UltraLong
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They are developing much needed technology for the transportation needs of tomorrow.
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The Coda automotive contract for 20,000 systems ($50 million) and may expand over two years to 40,000 systems (~$100 million) to just one company (Coda) should lead to UQM being the low cost supplier of automotive type electric motors. This opportunity alone should be enough to drive the stock higher. If UQM is able to come up with a break through motor that makes electric motors the low cost method for transportation the Company will become a buyout target for one of the global manufactors.
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Necessity is they mother of invention. Energy prices are going higher, we had a brief scare last summer but high fuel and energy prices will be back. UQM has the needed technology to help us get to the future with minimum disruption.
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Timing is everything here. UQM's stock price just a couple days before the filing for 15 million shares was in the low $3 range. $2.44 seems much more reasonable in that light. Also, the filing preceded the announcement of the 45 million stimulus Grant, Would they still have filed if they had known about the stimulus money? I assume the purpose of the filing was to obtain capital to grow manufacturing for the Coda contract. Depending on how they raise the matching stimulus money, the stock may not get diluted at all.
The Coda automotive contract for 20,000 systems ($50 million) is a volume that they've never had before. If they can execute on that order, it opens up the door for many other high volume contracts. I've seen lots of unprofitable companies go under, but the outlook for UQM is good. They are well positioned, well funded and have the engineering talent to take advantage of the wave of "green" opportunities.
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Good electric motor company getting more involved in electric drive systems for electric vehicles; stands to grow from this boom in technology.
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sleeper along with hmit.pk
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innovative propulsion design. existing trials are positive so far and promise success.
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UQM manufactures Electric Motors and related controller equipment used in Hybrid Vehicles and Electric Cars (the future of the automotive industry).
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Working with companies like Eaton and Deere. UQM provides electric motors, generators and electronic controllers for HEVs. Small company. Good growth prospects.
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If you own this stock, you are probably looking long term waiting for the electric vehicle industry to take off. With the politicians always talking about reducing our dependency on foreign oil, the EV market is just waiting to burst onto the scene.
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it is developing state of the art products that we will need in the near future.The company is focusing on tomorrws needs in the auto
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