lonworks: you seem to make EVERY post about Echelon. This is not about Echelon and there is no dispute of Echelon holding 81% of the European market.
This is about a French smart grid project for 35M meters. The company referenced in the articles and press releases is Itron. Period. If Echelon were involved, would they not have a similar press release? Would they not be mentioned by the smartmeter article?
Look, if you like Echelon great. However this is the Itron message board. If you like Itron then post information that relates to Itron. If you are short, then say you are short and provide information that rationalizes your short position. Otherwise: what is your purpose on this message board?
If you look at some of the previous articles the author has written you will easily find that Echelon currently has 81% market share in Europe. You can say what you want about ITRI spending millions of dollars in France and all of that and I'm sure they will get a piece of the pie. However, Echelon doesn't need to sell a full NES system to recognize significant revenues in France, they can sell components to a VAR (which they have already done in the 90,000 meter pilot in France) and still do great. Echelon has had multiple offices within Europe and Asia and have spent millions over the last 20 years so they have a tremendous headstart. ITRI frankly is fighting an uphill battle on the international front and even the new CEO has confirmed that in some of his recent comments. I actually envision at some point soon, that ITRI and Echelon will actually partner on some projects together.
I would look at some revenue being recognized on the French project by the 4th quarter of 2012. These things are painfully slow which makes investors so frustrated with the sector. Also, there are several hundreds of millions of meters coming online over the next 1 to 5 years which is a huge positive. But in the short term all eyes are on a Greek default coming as soon as next week and what that could do to credit to the European countries. Back in 2008, Echelon had announced a couple of really big deals in Eastern Europe that never materialized due to the financial crisis and only recently have they started to again talk about expansion in those regions. I'm hoping this European mess will right itself much sooner than later and we can get back to regular business activity.
Everything is dropping, it really doesn't matter which sector. This is similar to 2008 when money flowed out of all risk assets except government bonds. With this sort of pain, I'll be quiet and let the ITRI longs alone.
Charlie, you know I'm up to my eyeballs in Echelon stock, so I'm right there with you. but, itron stock and Echelon stock are BOTH dropping like a rock because the investing community believes the smart grid industry is in for a slow growth period until the world economies get healthy.