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Scorching
Short Term Ideas |
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I tried to spice up the Dog Days
of August with a couple of exciting short term ideas. Track Record: 1 for
2. Perfisans Holdings (OTC BB: PFNH) was a scorching win. The company
was featured in the August
6th edition. The stock closed at $.99 that day. On Friday, PFNH
closed at $1.64, and traded as high as $2.04 on August 31st.
Net return: 65% over three weeks.
My other August idea, Torrent
Energy (OTC BB: TREN) on August
3rd, was featured at $.96. Friday the stock closed at $.71, for a net
loss of 26%. Had you put $5,000 in each stock, based on Friday's closing
bids, your $10,000 investment would have been worth $11,980 for
a 20% return. On an annualized basis, this equates to a 240% annual return
on invested capital.
Exciting ideas come across my desk
nearly every day. I reject most of them. However, a few pass muster and
are worthy of presentation, especially during a slow time when we are waiting
for some of the longer term ideas to mature.
Today's idea has revolutionary technology
in the Solar Power arena. With energy costs skyrocketing, alternative energy
companies are back in investors' cross hairs. Today's company is way ahead
of the competition. Invest a few minutes of your time to review their technology
and learn about their recent dramatic surge in revenues.
 |
World Water
(OTC BB: WWAT) Revolutionizing Solar Power Delivery |
|
World Water is committed to
using Solar Power to solve water related problems. The engineering feat
they have achieved was born in the barn on the New Jersey farm of CEO Quentin
Kelly in 1984.
Fast forward twenty years. The company
has developed and is now marketing the only solar system that can deliver
the power required for true industrial applications.
To date, solar power has been used
primarily in small applications. Solar Panels can be used to drive 5
horsepower motors. They have been relegated to tasks like powering
remote highway signs, auxiliary pool heaters, and supplementing power to
individual homes.
World Water has patented technology
which allows Solar Panels to generate 600 horsepower, more than
100 times the standard of 5 horsepower. This additional power generation
opens up the possibilities far beyond the scope of current solar technology.
WWAT's unique patented technology
blends AC with DC power. Traditional solar systems generate DC power. The
utility company provides us with AC power. Through the two patented components
you see highlighted in red in the schematic, WWAT has the only technology
in world today that can seamlessly blend AC and DC power, which can be
used to turn a standard industry drive for any kind of high powered pump.
Their patented variable frequency circuit board automatically adjusts to
demands.
This unique blending technology allows
solar panels to drive 600 horsepower motors. This is an accomplishment
previously unheard of in solar, and WWAT is the only company in
the world that can achieve these kinds of results.
WWAT's business is expanding
rapidly in California where the sun shines. Alternative energy tax incentives
were adopted after the energy crunch several years ago, and companies are
taking advantage.
Here are some key accomplishments:
-
The company is working in conjunction
with BP (British Petroleum), Shell Oil, and Kyocera.
-
There have been three major installations
in California to date; 2 agricultural and the largest community college
campus in the US.
-
International projects in development
include Iraq, Libya, the Phillipines, and Sri Lanka
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The installation at Cerro Coso Community
College in California is the largest solar installation in the United States.
The system delivers 60% of the college's energy needs.
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WWAT achieved $3.3 million
in revenues in the June quarter vs $50,000 in the same quarter in the previous
year (650% increase). Through the first six months of 2004, WWAT delivered
$4.1 million in revs, up from $1.1 million the previous year (262% increase).
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WWAT has numerous projects currently
in development. The California Wine industry has a great deal of interest
in future use.
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WWAT has delivered the world's
largest solar powered commercial refrigeration system for a 350 horsepower
hydracooler at a food processing facility in Edison, CA.
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For more complete information, visit
their web site at www.worldwater.com.
Friday, just after the market closed,
WWAT
announced a new $2 million contract for an installation at
a large California based citrus farm. The patented AquaMax(TM) system will
drive a high powered 200 horsepower pumping system at the facility, establishing
the most powerful solar powered irrigation system in the world.
This contract is just the tip of
the iceberg for the company. Through it's major installations this year,
WWAT
has proven the technology can provide a return on investment on the largest
scale ever delivered by solar power. The combination of a strong ROI and
tax incentives is proving irresistible to new customers in Sun belt businesses
where water and power are required.
As of the end of June there were
65 million shares issued and outstanding. Based on Friday's closing price
of $.34, the entire value of the company is $22 million. Since they
have proven and patented technology which revolutionizes the entire solar
industry, it is reasonable to assume the company could garner a market
value considerably higher than $22 million in the future.
If they can simply maintain the June
sales levels, they will be on track to generate about $13.5 million in
annual revenues. I believe the company will eclipse those numbers by a
great margin as the demand for their technology picks up.
On the negative side, their gross
margins for the projects they delivered this year were minimal. The company
viewed these projects as an opportunity to prove they could deliver for
large scale power requirements, and they priced aggressively.
WWAT's long term goal is to
deliver 40% gross margins to shareholders. They don't manufacture the components.
They only provide patented technology and expertise. Therefore, I believe
a 40% gross margin is achievable. However, they need to prove they have
pricing power now that the technology has proved out.
The chart presented shows a formation
known as an "Ascending Triangle". As the triangle closes in on the apex,
the stock becomes more likely to break hard one way or the other. There
is good support at $.26. The overhead resistance stands at about $.38.
Therefore, if the stock breaks solidly above $.38, will have broken the
downtrend line, suggesting higher levels in the future.
A break above $.38 could bring $.50
into sight, especially if the company delivers more news of contract signings.
If Friday's $2 million contract proves a harbinger of things to come, higher
levels are likely in the near future.
Here is the complete text of Friday's
news release for your review:
| Press Release Source:
WorldWater Corporation
WorldWater Corp. Executes
$2 Million Contract for World's Largest Solar-Powered Irrigation System
Friday September 3, 4:11
pm ET
Contract Further Validates Company's
Proprietary Solar Technology and Strategic Vision with Its Cutting-Edge
AquaMax(TM) System
PENNINGTON, N.J.--(BUSINESS
WIRE)--Sept. 3, 2004-- WorldWater Corporation (OTCBB: WWAT - News), the
world's sole provider of cutting edge patented high-volume solar powered
technology with diverse commercial applications in a broad range of industries,
announced today that it has executed a $2 million contract for its proprietary
AquaMax(TM) pumping system at a California citrus ranch. The announcement
was made by Quentin T. Kelly, WorldWater chairman and CEO.
WorldWater's proprietary
and patented AquaMax(TM) system will drive a high powered 200 horsepower
pumping system at the facility, establishing the most powerful solar powered
irrigation system in the world. The project represents a quantum leap forward
in the deployment of large-scale solar power pumping technology and demonstrates
the viability of solar power for broad applications in virtually all industries
anywhere in the world.
"While many of the world's
finite energy sources are being depleted at a disquieting rate, as evidenced
by the current global oil crisis. WorldWater's ability to harness the unlimited
power of the sun with our proprietary AquaMax systems represents breakthrough
technology," said Mr. Kelly. "Our patented technology can deliver up to
600 horsepower - more than 100 times as powerful as the nearest competitors
- making ours the only products available anywhere in the world that can
deliver the water-pumping horsepower required for large scale commercial
applications. Installations such as the one at this California agricultural
facility clearly demonstrate how WorldWater has enabled solar power to
achieve an unparalleled level of practicality and cost-effectiveness for
a broad spectrum of commercial mainstream uses."
"California is one of
the leading states in the development of solar and renewable energy, and
is the proving ground of many of the world's most advanced solar power
systems," continued Mr. Kelly. "This new ranch irrigation system is just
the latest in a series of major projects in development for WorldWater
in California."
Among WorldWater's recent
milestones powered by its AquaMax(TM) solar power technology in California
are:
Supply of a powerful
one megawatt solar system for Cerro Coso Community College in Ridgecrest,
projected to furnish an unprecedented 60% of the institution's electricity
requirements;
Design and installation
of the world's largest solar-powered commercial refrigeration system, for
a 350 horsepower hydracooler for a food processing facility in Edison;
Development of a 50
horsepower solar pumping system for an agricultural facility in Firebaugh.
About WorldWater
WorldWater Corp., a full-service,
international solar engineering and water management company with unique,
high-powered and patented solar technology, provides solutions to a broad
spectrum of the world's water supply and energy problems. The Company's
recently patented AquaMax(TM) solar pumping systems, capable of driving
motors up to an unprecedented 600 horsepower, make WorldWater the first
solar company in the world with the power to deliver mainstream motor-drive
and pumping capability. The Company is also a pioneering provider of solar
powered water systems in the Philippines and developing nations in Africa
and Asia.
WorldWater seeks to achieve
significant revenue growth and earnings leverage by marketing its proprietary
solar technology through multiple channels to a broad spectrum of institutional
and private parties anywhere in the world. Prior to the development of
the AquaMax technology, solar powered motors were limited in output to
only 5 horsepower, and thus incapable of pumping the volume of water required
for large scale systems. WorldWater's proprietary AquaMax systems can drive
motors up to a revolutionary 600 horsepower, generating significant commercial
opportunities for exploitation by WorldWater and vastly expanding the range
of applications for clean, renewable solar power in commercial, municipal
and institutional mainstream applications. Each day, more solar energy
bathes Earth than its 5.9 billion inhabitants consume in equivalent electric
power in 27 years, according to the U.S. Department of Energy's National
Renewable Energy Laboratory in Golden, Colorado. With many international
and domestic governmental agencies increasingly concerned about clean air
and water conservation, WorldWater is well positioned to implement its
patented AquaMax(TM) systems for the supply of all power needed for the
largest irrigation and cooling systems in the world - with no pollution
and no excess pumping to foul the air or excessively drain the natural
water resource.
It is the opinion of
WorldWater's management and board of directors that no other company is
better positioned to capitalize on the worldwide demand for next-generation
solar technology, as represented by the Company's patented technology.
The energy generated by WorldWater is pollution-free, fully renewable,
reliable, highly scalable and requires lower operating costs. WorldWater's
early-mover advantage, and its next generation solar technology, will enable
the Company to exploit a broad range of high revenue and high profit opportunities
in both the public and private sectors in multiple worldwide markets, facilitating
additional contracts to increase revenues while concurrently lowering costs
and increasing margins. For more information about WorldWater and its next-generation
proprietary technology, visit the website at www.worldwater.com, or for
investor-specific information at www.trilogy-capital.com
--------------------------------------------------------------------------------
Contact:
For the Company:
WorldWater Corp.
Debra J. Grady, 609-818-0700, ext. 14
[email protected]
OR
Investor Relations:
Paul Karon, 800-342-1467
[email protected]
--------------------------------------------------------------------------------
Source: WorldWater Corporation |
Charts Provided Courtesy
Of TradePortal.com |
