SlowHands
03-21-2009, 08:41 AM
http://www.cleanmpg.com/photos/data/2/AmericanFlag.jpg The push for greener cars could be a boon for Ener1, a publicly traded pre-pay electric-vehicle battery outfit. But there's a catch. (online.barrons.com/article/SB123759911193301535.html)
http://www.cleanmpg.com/photos/data/501/Insight_Pack.jpgLeslie P. Norton – Barrons (online.barrons.com) - March 21, 2009
Battery wars - it seems that funding is the bigger battlefield than the technology. -- Ed.
BARACK OBAMA HAS A VISION: a million electric vehicles on U.S. roads by 2015. If that dream becomes a reality, it could be good news for Ener1 , a small New York City-based manufacturer of electric-car batteries. Ener1, which has manufacturing facilities in Indiana and Korea, is a publicly traded pure-play maker of electric-vehicle batteries in the U.S., and even boasts a killer Nasdaq ticker symbol: HEV, short for hybrid electric vehicle.
The Obama administration is pushing hard for green transportation. Last month, at a joint session of Congress, the president called for "a retooled, re-imagined auto industry that can compete and win," and lamented that hybrids now run on batteries made in Korea. That cry is echoed by Denise Gray, the battery czarina at General Motors (GM), whose electric-powered Chevrolet Volt is scheduled to debut next year and which uses Korean batteries because Chevy couldn't find a domestic source for what was needed. Says Gray: "The closer [the supplier] is, the less the cost. We should have the capability here."
If Ener1 were to win 5% to 12% of a million-vehicle battery market, the company estimates, it could pull in $2.1 billion in annual revenue with 15% margins (based on earnings before interest, taxes, depreciation and amortization). "If you want to apply a 15 times multiple to that cash flow, which in any normal market is a reasonable growth market, you're talking about a $4.5 billion equity-market cap," says CEO Charles Gassenheimer... http://online.barrons.com/article/SB123759911193301535.html
http://www.cleanmpg.com/photos/data/501/Insight_Pack.jpgLeslie P. Norton – Barrons (online.barrons.com) - March 21, 2009
Battery wars - it seems that funding is the bigger battlefield than the technology. -- Ed.
BARACK OBAMA HAS A VISION: a million electric vehicles on U.S. roads by 2015. If that dream becomes a reality, it could be good news for Ener1 , a small New York City-based manufacturer of electric-car batteries. Ener1, which has manufacturing facilities in Indiana and Korea, is a publicly traded pure-play maker of electric-vehicle batteries in the U.S., and even boasts a killer Nasdaq ticker symbol: HEV, short for hybrid electric vehicle.
The Obama administration is pushing hard for green transportation. Last month, at a joint session of Congress, the president called for "a retooled, re-imagined auto industry that can compete and win," and lamented that hybrids now run on batteries made in Korea. That cry is echoed by Denise Gray, the battery czarina at General Motors (GM), whose electric-powered Chevrolet Volt is scheduled to debut next year and which uses Korean batteries because Chevy couldn't find a domestic source for what was needed. Says Gray: "The closer [the supplier] is, the less the cost. We should have the capability here."
If Ener1 were to win 5% to 12% of a million-vehicle battery market, the company estimates, it could pull in $2.1 billion in annual revenue with 15% margins (based on earnings before interest, taxes, depreciation and amortization). "If you want to apply a 15 times multiple to that cash flow, which in any normal market is a reasonable growth market, you're talking about a $4.5 billion equity-market cap," says CEO Charles Gassenheimer... http://online.barrons.com/article/SB123759911193301535.html