Once high flying BluePoint Energy (CPEU.OB) has run into funding problems. In the month prior to their CEO’s departure on August 26th the company lost 2/3 of its value. Since then the company has lost an addition 2/3 of its value and had difficulty completing a stock sale on Sept 24. Undoubtly the purchasers were unhappy having to purchase shares at USD 0.36 per share when the closing price on the 22nd was USD 0.09 per share.
BluePoint’s original stategy was to install ultra clean internal combustion engines as BluePoint owned CHP units in customer premises. This isn’t a new strategy and many others have had difficulty economically operating this technology on a small scale in continuous operation. Apparently BluePoint recognized this and switched strategy about a year ago to become a “demand response” aggregator.
While we do have some examples of companies expanding in this area, success for investors is still elusive. Comverge (COMV) recently announced a significant increase in its MW under contract. Unforturnately for investors the company is expect to continue losing money and its stock has lost 85% of its value this year. EnerNoc (ENOC) is a similar story. The company’s solution worked in a recent call in Ontario but its investors have lost 78% of their value this year and are looking forward to continued losses. Even managing 2,200 MW in the Comverge’s case doesn’t seem sufficient to drive profitablity.
Given these more established competitors are still losing money, BluePoint’s strategy switch, and limited capital, may be insufficient for its investors.