Tech companies have lost their sizzle, thanks to a meteoric rise and crash, and maturity. Sure you can still make money investing in Microsoft (Nasdaq: MSFT), but you have to pick your spots–a new product launch, or big upgrade, for example.
Or buying more shares of Cisco (Nasdaq: CSCO) on weakness and fewer when the stock peaks, and making your money on dollar-cost averaging into the company’s steady 12% earnings growth, as Jim Jubak of MSN recently stated.
One of the buzz trends to keep an eye on is batteries, according to Jubak. Devices are getting smaller and more demanding. Lithium-ion batteries alone powered 50 million laptops, 800 million cell phones and 80 million digital cameras sold in 2005.
Here are a few battery buzz stocks you should keep your eye on:
1. China BAK Battery, Inc. (Nasdaq: CBAK): This company is poised to capitalize on the growing global market for batteries. Gross profit for the first quarter of FY 2009 increased nearly 50 percent, to $10.6 million, from $7.1 million a year earlier. Revenue for the quarter increased 30 percent to $68.1 million, from $52.8 million a year ago. The Company reported cash and cash equivalents of $37.2 million as of December 31, 2008, and gave revenue guidance of between $270 million and $300 million for FY2009–a 16 percent increase over 2008 at the midpoint range.
2. Ener1, Inc. (NYSE: HEV): No huge sales here–just a lot of great technology. Although the Japanese have traditionally led the battery market, Ener1 is a homegrown company with great ties to Japan. The company just announced a memorandum of understanding with ITOCHU Corporation, a highly diversified global trading company that leads the world market in distribution of specialized equipment and materials needed to produce lithium-ion battery cells. In addition to battery technology, Ener1 develops commercial fuel cell products through its EnerFuel subsidiary and nanotechnology-based materials and manufacturing processes for batteries and other applications through its NanoEner subsidiary. The company has about $18.6 million in cash, and is trading below its 50-day moving average.
3. mPhase Technologies, Inc. (OTCBB: XDSL): The company’s technologies are based on electrowetting, a unique way to store and manage power. In late January, mPhase announced that it was “getting close” to selecting a contractor to construct the company’s AlwaysReady Reserve Battery, that will be used in the AlwaysReady Emergency Flashlight. According to a recent news release, the AlwaysReady Reserve Battery is a manually activated lithium reserve cell with a minimum storage life prior to activation of 20 years. This is a promising, high-risk, micro-cap, penny stock.
Here’s a cool video on mPhase’s nano battery: