NEVs blog

In a previous post on the California R/C solar market I identified 5 factors needed to continue the growth in solar installations.    Topping the list was “continuation of federal and state  incentives which drive down the cost of installs significantly (California incentives will grow to around $600 million per year in California by 2015, this is real money)”  .

Yesterday Energy Conversion’s CEO  [ENER] reported that “a dramatic and abrupt shift in the French and Italian solar incentive structures has impacted our business” and that the changes  “may impact as much as 50% of this quarter’s forecasted revenue”.   On Friday ENER promptly lost 21.5% of its market value.

Policy makers don’t have a lot of choices on how to make a dent in fossil fuel consumption and solar is certainly part of the picture.   But policy makers also face financial pressures that make renewable policies vunerable due to their costs vis-a-vis doing nothing.   In this case investors stand to be the losers in the balancing act.

Disclosure: the author has no position in ENER.

Three more companies dropped out of our database.  Consolidated Biofuel (CSBF.PK), Turbodyne Technologies (TRBD.OB), and US Energy Systems (USEYQ.PK) have all ceased trading.  Consolidated was in the biodiesel business, Turbodyne was trying to leverage an electric turbocharger, and US Energy developed small scale cogen projects.    Apparently none of these strategies were able to gain traction.     They are just a reminder that investing in the OTC markets is fraught with a significant risk of the complete loss of an investment.

Since the last update to our main database on December 12, 2010 we’ve seen two companies, Pure Biofuels [PBOF.PK] and Clean Power Technology [CPWE.PK],  listed in the US move from the OTC BB to the Pink Sheets.  This is rarely a good sign, particularly after a year in which clean energy companies generally lagged the broader markets.

My web host has decided to make its web environment safer by changing a setting in its web hosting language.   Unfortunately, my graphics package makes extensive use of this feature.  This wouldn’t be so bad if the web host used the latest version of the php programming language so I could update to the latest graphics package.   Catch 22.  We’re all safer but I won’t have any graphics until I move to a different web host or find a solution.   Why don’t I feel better about being safer?

Each update seems to highlight more OTC companies that are deliquent or have moved to the Pink Sheets.  This time Americans Wind Energy Corp. (AWNEE.OB) and XSUNX, Inc. (XSNXE.OB) are delinquent and Electro Energy, Inc. (EEEI.PK) has moved to the Pink Sheets.

I’m seeing more activity then usual in delinquent OTC Bulletin Board companies.  In Camino’s last round of updates we found that Pacific Fuel Cell (PFCEE.OB),  Interpid Technology (ITRPE.OB), and Earth Biofuels (EBOFE.OB) have all been deemed delinquent in filings by FINRA.   While these companies can become current, investors in all three companies are in danger of losing all their investment. 

For those following our FCELL and BIOFUEL indices, it’s no surprise that investors in these two sectors face huge risks.  OTC companies face even steeper hurdles in a falling energy market.

Alcar Chemical listed on the Pink Sheets March 15, 2006.  The company was formed to manufacture plastics and polymer raw materiasl from organic waste.   Pink OTC Markets has discontinued the display of quotes on pinksheets.com for this security because it has been labeled Caveat Emptor due to a lack of current information.  The company has also been removed from Camino’s database.

The company (0757.HK) disclosed that its subsidiary, Wealthy Rise is required to pay Hoku Scientific (HOKU) a deposit in the amount of US$68 commencing this year relating to future deliveries of silicon.   The amount triggered a manditory announcement pursuant to the listing rules of the Hong Kong exchange.   Subsequent to the Company’s disclosure trading resumed on Sep 12th.

Since last Thursday 34 of the 36 companies in our Solar index have declined driving the index down 11.5%.   One exception, with no price changes, was Solargiga (0757.HK) which requested trading in its share be suspended starting at 9:30 AM on Friday, September 5th pending  “the release of an announcement relating to a major transaction”.   Solargiga is engaged in the manufacturing of monocrystaline silicon and in reclaiming and upgrading silicon.   The company is acting fast with a “major transaction” coming just 6 months after their IPO debut on March 31, 2008

The only company advancing, albiet a modest 1.6%, since Friday is Solar-Fabrick AG (SFX.F).  Solar-Fabrick manufactures modules and is also in the reclaiming business through its July 2005 acquisition of Global Expertise Wafer Division Ltd., a wafer trader and recycler of semiconductor silicon.

Two new European IPOs launched in June adding to the number of publicly traded solar and wind companies.  The world’s forth largest wind producer, EDP Renovaveis (EDPR.LS) listed on the Lisbon Exchange on June 2, 2008.  Solar inverter producer SMA Solar Technologies AG (S92.F) listed in Franfort on June 26, 2008.  Both firms are now part of Camino’s ongoing coverage.

On the coverage loss side, one company was eliminated due to its acquision and one was discontinued due to bankruptcy.

The ASX formally suspended quotations for Babcock & Brown Environmental Investments (BEI.AX) on 5/16/08.  Babcock & Brown Environmental Investments Holdings Pty Ltd (Babcock & Brown) has acquired 97.88% of the shares in the company through its takeover offer announced in November 2007. Babcock & Brown has now commenced the process for compulsory acquisition of the outstanding shares by lodging notice (Form 6021) with the Australian Securities & Investments Commission.

On June 6, 2008, Distributed Energy Systems Corp. (DESC) received a Staff Determination Letter from The Nasdaq Stock Market (“Nasdaq”) indicating that, as a result of Distributed Energy Systems’ filing for protection under Chapter 11 of the U.S. Bankruptcy Code, Nasdaq has determined that Distributed Energy Systems’ securities will be delisted from Nasdaq in accordance with the discretionary authority granted to Nasdaq under Marketplace Rules 4300 and IM-4300.

Distributed Energy Systems does not intend to appeal this determination, and, as a result, trading of Distributed Energy Systems’ common stock will be suspended at the opening of business on June 17, 2008, and a Form 25-NSE will be filed with the Securities Exchange Commission to remove Distributed Energy Systems’ securities from listing and registration on Nasdaq.