Two diametrically-opposed stories for this post: Beacon Power [NASDAQ: BCON] and RailPower Tech [TSE:P]. The latter is up 134% on its week-ago closing price, while the former is down nearly 22% over the same period.

Beacon Power Corp

I wrote about Beacon Power a little while ago. The recent drop in share price is due in large part to the fact that Beacon announced, last Friday (Dec. 29), a glitch at one of its testing facilities in Massachusetts. This was followed by an analyst at Merriman Curhan Ford downgrading the company from Buy to Hold. Almost immediately, the stock began experiencing strong downward momentum on high volumes. 2.44 million shares changed hands today – compare that to a 3-month average of around 426,000.

I poked around but was unable to find much substantive info that would allow me to properly appraise the problem. Maybe some of you have info that you could share with the rest of us?

So far, Beacon’s tests in California and NY have gone well. As I told a reader who asked about this earlier, I think it is a tad early to panic and I haven’t dumped any of my stocks yet. Nonetheless, I wouldn’t buy any until I know more about the exact impact this problem will have on the company’s plans to begin generating revenue from its flywheel-based grid regulation system. Beacon hopes to begin offering its grid regulation services on a commercial basis in the 2nd half of ’07.

The company’s technology appears to have been well received by California's regulators, and, as I mentioned in my last post about them, this could be a 5-year affair saddled with volatility. Overall, however, I still buy their story, and I think the increasingly rapid deployment of renewable energy in California and other US states will create strong demand for Beacon’s applications. Anyone who's experienced rolling blackouts or brownouts in the past few years knows that grid regulation will be a big deal going forward.

RailPower Tech

The RailPower story is, as indicated initially, completely different. RailPower makes diesel-powered hybrid locomotives that are overall markedly more efficient and less polluting than conventional locomotives.

This is a stock that had been trading consistently above $4 on the TSE since the 2nd half of 2004. 2006 was nothing short of a misery year for RailPower; it went from a 52-week high of $6.67 to a low of $0.45 a few weeks ago. The stock began slowly rebounding in mid-December after the company announced it had managed to get out of a money-loosing contract that would have cost it around $17 million (C$20 million).

The real action began, however, on Dec. 27, when the stock closed 17% higher than its day-before closing price, and volumes reached 1.4 million shares. Volumes have averaged 4 million shares since Dec. 27, compared with a 3-month average of around 1 million. As mentioned in the intro, the stock gained 134% between Dec. 27 and today. I should mention that RailPower was actually down 5.75% today, probably on profit taking.

Other than the contract cancellation, I couldn’t find anything else that would account for this very sudden return to favor of RailPower. This is a company which I have been watching from afar for about a year, without ever really looking into it seriously. There was nothing about RailPower that made it stand out from the cleantech crowd, as far as I could tell; it has a really cool technology but is having a hard time turning it into strong sales and operating cash flows. I suspect, however, that it may only be a matter of time. If any of our readers have good insight about this company, it would be interesting to hear it.

(DISCLOSURE: I am long Beacon Power)

Posted by Charles Morand at 07:41 PM | Permalink | Comments (6)

Beacon Power Corp (BCON) announced that it recently delivered, installed and connected a scale-power Smart Energy Matrix demonstration system to the electricity grid in Amsterdam, New York. After arriving at the site, the system was connected and turned up to full power, and is now following and responding to live ISO-specified requirements to demonstrate frequency regulation. The project, jointly funded by the New York State Energy Research and Development Authority (NYSERDA) and the U.S. Department of Energy (DOE) Energy Storage Program, is the second such scale-power system Beacon has delivered, in addition to a similar system in California. [ more ]

Posted by Mark Anderson at 07:28 AM | Permalink | Comments (0)

SatCon Technology Corporation (SATC) announced that it has received a follow-on purchase order for a second 2200 kVA Rotary Uninterruptible Power Supply (RUPS) on a government contract valued in excess of $1.1 million.

SatCon's StarSine(TM) Rotary UPS is designed to provide both high quality electrical power during normal operation, as well as prevent any interruption of electricity to critical manufacturing processes, telecommunication centers, data centers, and healthcare facilities in the event of power grid failures such as black-outs and brown-outs. The RUPS is connected directly to SatCon's patented flywheel for short duration power disturbances and is integrated with a diesel engine to provide a seamless transfer to provide long-term power in the case of an extended outage. [ more ]

Posted by Mark Anderson at 09:27 AM | Permalink | Comments (0)

Active Power Inc (ACPW) announced an order from Eaton Powerware for twelve 500 kW DC flywheel systems. These units will ship in the first half of 2006 and be used to upgrade the power infrastructure of an existing data center in the United States. [ more ]

Posted by Mark Anderson at 09:01 AM | Permalink | Comments (0)

Active Power Inc (ACPW) announced an order from Caterpillar Inc. for eleven one-megawatt flywheel UPS systems. The majority of these systems will be shipped during the current quarter and will be used to provide power protection for a large datacenter in the United States. [ more ]

Posted by Mark Anderson at 11:04 AM | Permalink | Comments (0)

Active Power Inc (ACPW) announced that the largest airport in Mexico, Aeropuerto Internacional de la Ciudad de Mexico (AICM), has selected its battery-free CleanSource® UPS to protect runway and taxiway lighting. Additionally, a new terminal that will begin construction this year will also be supported by Active Power's battery-free systems. Deliveries against this order started in Q4 of 2005 and will continue through the first half of 2006. [ more ]

Active Power is following a good business model of selling into a niche that it already has a good presence in (FuelCell Energy has a similar practice with Hotels.) They currently have several airport installations in Spain and this marks the second airport installation in Mexico.

Posted by Mark Anderson at 10:22 AM | Permalink | Comments (0)

Beacon Power Corp (BCON) reported revenue of $304,064, compared to revenue of $80,902 in the third quarter of 2004, an increase of $223,162, or 276%. Revenues for the nine months ending September 30, 2005, were $1,258,503, compared to $264,793 for the same period in 2004, an increase of $993,710, or 375%.

Beacon Power reported a net loss of $2.1 million, or ($0.04) per share, compared to a net loss of $1.9 million or ($0.04) per share for the third quarter of 2005 and 2004, respectively, representing an increase of approximately $0.2 million or 16%.

They ended the third quarter of fiscal 2005 with approximately $3.4 million in cash and cash equivalents. On November 8, 2005, the Company raised approximately $15 million, before expenses of approximately $0.8 million, from ten institutional investors in a private placement. The Company expects to use the proceeds to begin development of its Smart Energy 25 flywheel, which is a key component of the Company's Smart Energy Matrix system for frequency regulation. [ more ]

Posted by Mark Anderson at 09:45 AM | Permalink | Comments (0)

Beacon Power Corp (BCON) announced that it has been awarded a contract through the Air Force Research Laboratory (AFRL), and co-funded by the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense. The contract, valued at $750,000, is for the preliminary design of a space-based flywheel energy storage system for satellite applications, and is a Phase II award under the Small Business Innovation Research (SBIR) program of the U.S. Small Business Administration's Office of Technology. Beacon announced completion of an associated Phase I project earlier this year. [ more ]

This was welcome news for this company and its stock. BCON closed the day with a greater than 15% gain today on the news. This gain was also against the general trend of the market today. In general most of the stocks in this sector have had a tough past couple of days in the stock market.

I have become extremely cautious about adding any new money to the portfolios. I have received short term sell signals for the general trend of the market on many technical indicators I follow. I have also received confirmation from several advisors that I trust with the regard to the trend of the general market.

I only say this as a note of caution about adding new money to the market now. I'm currently at 50% cash in the mutual fund and plan to stay that way in the interim. I'm not planning on selling any of my current holdings but will be ready with cash when I feel the time is right to jump back in. If you have large gains in any of these stocks, you may want to take some money off the table at this point.

Posted by Mark Anderson at 09:55 PM | Permalink | Comments (0)

I currently don't have time to do a complete writeup on this stock, but wanted to let everyone know that I purchased shares in Active Power Inc (ACPW) this afternoon for both my personal portfolio and the mutual fund. The average price was at $3.77. I will updated this post later this afternoon with more details.

Updated at 10:00 PM

As I mentioned above I purchased shares in Active Power Inc (ACPW) this afternoon for both the mutual fund and my personal portfolio. Active Power designs and sells battery-free uninterruptible power supply (UPS) systems. They accomplish this through the use of flywheel technology and they have also developed their CoolAir^TM DC: Thermal and Compressed-Air Storage (TACAS) technology that uses compressed air and heat to provide clean power backup.

Last week the stock made a bullish technical signal with a golden cross using the 50/200 day moving averages. The stock is currently sitting at some support at the $3.50 level and the potential downside could be all the way down to $2.50 by looking at the technical picture. As a long term purchase, I would be willing to buy all the way down to the $2.50 level. My gut is telling me that we will not see anything below $3 for sometime.

However, keep in mind this is a speculative purchase. The company is still not profitable and analyst estimates are not seeing profit opportunities for 2006 either. There is also nobody willing to float an estimate for profits looking out 5 years. The key driver for future growth in this company are more contracts and running the company efficently.

There is plenty of interest in the company and I see positive signs in the company and also the potential for a higher stock price in the future.

On the plus side, there is a history of steady buying of the stock by the Chairman, Mr. Pinkerton. The number of shares short have been steadily declining. They have been making postivie progress on the revenue estimates and also reporting better than expect losses for the most recent quarter. Finally, they have also been securing some large orders recently that have helped the stock on its recent up move.

Active Power Ships Continuous Power System for Use at Chinese National Olympics
announced the shipment of a continuous power system to China for use at the country's National Olympics being held in Nanjing in October. The system integrates an Active Power CleanSource® flywheel UPS, diesel engine generator and transfer switch, all enclosed in a standardized mobile container that allows it to operate in harsh outdoor environments. Control software is also included that allows the user to remotely monitor all aspects of the power system at one central location. [ more ]

Active Power Receives 5.4 MVA UPS Order; Largest Megawatt-Class UPS Order to Date
announced receipt of a new order from Caterpillar Inc. for four 1200 kVA flywheel uninterruptible power supply ("UPS") systems and two 300 kVA UPS systems. The units will be used to protect the state-of-the- art high speed printing operation of a large communications company in the Southeast United States. Shipment is expected to take place within the next two quarters. [ more ]

As I look at this trading for this stock today, I ended up purchasing it at the high of the day and will look for an opportunity in the near future to average down to a better price point for the mutual fund. My plans for my personal portfolio is to let it stand as is.

DISCLAIMER: I am not a registered investment advisor. The information and trades that I provide here are for informational purposes only and are not a solicitation to buy or sell any of these securities. Investing involves substantial risk and you should evaluate your own risk levels before you make any investment. Past results are not an indication of future performance. Please take the time to read the full disclaimer here.

Posted by Mark Anderson at 01:37 PM | Permalink | Comments (1)

Beacon Power Corp (BCON) announced that it has delivered a flywheel-based power system to Bechtel Bettis, Inc., under a contract that it announced in March 2005. The demonstration system, built using a Smart Energy 6 flywheel, is designed to provide a high cycle-life, reliable source of stored energy for a number of potential applications.

"This system we've delivered to Bechtel Bettis is an example of our strategy to address additional market opportunities beyond our primary business focus of providing advanced technology solutions for electric power systems," said Bill Capp, Beacon Power president and CEO. "We continue to seek ways to leverage Beacon technology as a viable alternative to conventional, non-sustainable energy storage. With this system in the hands of users who will evaluate its performance, we hope to both learn from their feedback and establish ourselves as a capable supplier." [ more ]

Posted by Mark Anderson at 12:10 PM | Permalink | Comments (0)

The market for grid frequency regulation services open to new service providers in the United States in 2004 was valued at nearly $360 million - and is expected to increase in 2005 - according to a Technology Brief issued today by Ardour Capital Investments, LLC. Frequency regulation is the target market for Beacon Power Corp (BCON) Smart Energy Matrix flywheel energy storage system, two demonstration systems of which are being built under contract to the California Energy Commission (CEC) and the New York State Energy Research and Development Authority (NYSERDA). The Technology Brief is available online at www.ardourcapital.com, under "Ardour's Energy Tech Updates." [ more ]

Posted by Mark Anderson at 11:19 PM | Permalink | Comments (0)

Beacon Power Corp (BCON) has announced that it has been awarded a contract from Bechtel Bettis, Inc., to design and deliver an advanced flywheel-based power system demonstration unit. Bill Capp, Beacon Power president and CEO says "...Although this contract is not considered material from a revenue standpoint, these types of projects are significant because they extend our technology portfolio, help defray operating expenses, and can lead to other business opportunities." [ more ]

Posted by Mark Anderson at 10:42 AM | Permalink | Comments (0)

Beacon Power Corp (BCON) announced that on March 2, 2005, it received a letter from The NASDAQ Stock Market stating that because the closing bid price of the Beacon's common stock has been at $1.00 per share or greater for at least 10 consecutive business days, Beacon has regained compliance with Marketplace Rule 4310(c)(4). [ more ]

This is wonderful news for BCON.

Posted by Mark Anderson at 09:17 AM | Permalink | Comments (0)

Beacon Power Corp (BCON) is scheduled to deliver two presentations at conference sessions next week at the 2nd Annual POWER-GEN Renewable Energy Conference and Exhibition, held at the Las Vegas Hilton from March 1-3. Both presentations will focus on the role of flywheel energy storage systems, and Beacon's patented technology in particular, in critical power grid applications. [ more ]

Posted by Mark Anderson at 08:46 AM | Permalink | Comments (0)

Beacon Power Corp (BCON) announced that it has executed a contract with the California Energy Commission to demonstrate an advanced energy storage solution for frequency regulation and grid stability. At a business meeting on December 1, 2004, the California Energy Commission had given its approval to the project, leading to contract negotiations that have now been finalized. The contract is expected to produce approximately $1.2 million of revenue, with the majority of it in 2005. [ more ]

Posted by Mark Anderson at 06:55 PM | Permalink | Comments (0)

Beacon Power Corp (BCON) announced that yesterday it received from the New York State Energy Research and Development Authority (NYSERDA) an executed contract between Beacon Power and NYSERDA under a joint initiative between the U.S. Department of Energy (DOE) Energy Storage Research Program and NYSERDA, to demonstrate an advanced energy storage solution for frequency regulation and grid stability in New York State. The contract is expected to produce approximately $645,000 of revenue, nearly all of it in 2005. [ more ]

The stock is trading up over 20% today on this news.

Posted by Mark Anderson at 12:26 PM | Permalink | Comments (0)

Beacon Power Corp (BCON) announced that it has recently been awarded a United States patent for the unique design and construction of its composite flywheel rim, and that a few days ago, it received a written notification that another U.S. patent on the rim is to be granted in early February 2005.

The composite rim is a key component of a flywheel energy storage system, as a rim's mass and ability to spin at high speeds have a direct relationship to the amount of energy that can be stored. Beacon Power, a pioneer in this technology, has been able to design and build flywheel systems that deliver the highest amount of stored energy for their size and weight, thanks in part to this critical proprietary knowledge. [ more ]

Posted by Mark Anderson at 08:00 AM | Permalink | Comments (0)

Active Power Inc (ACPW) announced the shipment of its first CleanSource® XR evaluation unit to one of the largest producers of electricity in the United States. The CleanSource XR unit will be tested under a variety of conditions for both backup power and load-shifting applications.

CleanSource XR stores energy in the form of heat and compressed air. When power is needed, the compressed air is routed through a thermal storage unit to acquire heat energy. The heated air spins a simple turbine-alternator to produce 5 to 85 kW of electric power for up to several hours. Unlike commonly used lead-acid batteries and engine-generators, CleanSource XR is non-toxic and produces zero emissions. [ more ]

Posted by Mark Anderson at 07:58 AM | Permalink | Comments (0)

Beacon Power Corp (BCON) was up over 147% at the close today. This move was primarily based on two project wins. One with the New York State Energy Research and Development Authority and the other with the California Energy Commission.

The projects would have Beacon Power provide grid frequency regulation and reactive power by utilizing its flywheel energy storage system. The final terms and conditions of the projects have not been disclosed. [ more ]

Posted by Mark Anderson at 07:14 PM | Permalink | Comments (0)

Beacon Power Corp (BCON) announced that on November 17 it received a letter dated November 16, 2004 from the Nasdaq Stock Market, stating that the Nasdaq Listing Qualifications Panel has granted the Company an additional 180 days to regain compliance with marketplace Rule 4310(c)(4). [ more ]

What this means is that Beacon is going to do everything in its power to get the stock price back above $1. They had a nice run up to .80 in October but have since fallen back down to the .40 range. Shares in BCON are up 10% today on this reprieve.

Posted by Mark Anderson at 10:37 AM | Permalink | Comments (0)

Active Power Inc (ACPW) announced that it has received its first order for two multi-megawatt systems in a parallel configuration. With this order, the total number of megawatt UPS systems sold is now eleven, with eight of these sales occurring in the last 4 months.

Active Power's products are a proven alternative to problematic battery-based systems. CleanSource flywheel technology uses the kinetic energy from a constantly spinning steel flywheel to eliminate the need for lead acid battery-based systems. [ more ]

Posted by Mark Anderson at 12:35 PM | Permalink | Comments (0)

Active Power Inc (ACPW) announced the details behind its latest breakthrough in alternative energy storage. The new technology, based upon the innovative combination of several mature technologies, constitutes a monumental achievement in energy storage by providing the extended runtimes of lead-acid batteries without any of the well-known shortcomings of these cells. This Thermal and Compressed Air Storage (TACAS) technology will be incorporated into Active Power's newest product that will begin shipping as an alpha unit late this year, the CleanSource® XR. [ more ]

Posted by Mark Anderson at 08:51 AM | Permalink | Comments (0)

Active Power Inc (ACPW) announced that it successfully operated a prototype of its new battery-free energy storage system at 10 kilowatts (kW) for over 2 hours, a milestone that positions the new product well for the telecommunications segment.

"The runtime of this prototype system is already 60 times that of our flywheel product and yet offers the same battery-free benefits," stated Joe Pinkerton, Chairman and CEO of Active Power, Inc. "A battery-free system that provides hours of backup time will allow Active Power to pursue the $4 billion telecommunications backup power market." [ more ]

Posted by Mark Anderson at 12:58 PM | Permalink | Comments (0)