Now providing RUGGED(IZED) PECCs AND ZESS 500s.
Anyone read the new filing?
ZBB now establishing muli-MW backlog. What's that LV PECC?
Manufacturing capacity being booked.
EATON now has the incentive to work very closely with ZBB on the V3 ZESS and to ensure it's successful ramp and launch.
This news is huge.
Forget all the extraneous customers/alliances: Nidon, Sunpower/Target, BC Hydro, UW consortium partners, telecom PECC, China...?
PECCs and ZESS 500s.
TIER integration...cash flow....leverage....
500 to EATON/US
500 to Sunpower
500 to China
1.5 MW backlog??
LV PECC to EATON/US
LV PECC to China....?
anyhow...... big news EATON/ZBB....
also ability to leverge into EV charging at military/US Islanded sites....
like those terms "islanded" and "mico-grids".....could be hearing more of it...
this also helps to limit significant shareholder dilution, imho....glta!
things are developing at an "agressive" pace....
the ability to leverage throught Eaton is significant..
they don't have a product like the ZESS as far as i can tell...
eric said they are looking at partners for expanded V3 ZESS production...glta
34 Million in sales less 14 Million in breakeven cost = 20 Million in gross revenue at 33% profit margin = $.22 per share profit.
Considering that more losses will be incurred prior to hitting the 34 Million figure I'm not convinced you can get to $10 per share very quickly.
However, I'm not arguing that if the company could ramp sales quick enough to avoid losses and dilution then certainly this little stock could be a goldmine. One can only hope. I know I am.
I'll go with the 1 billion in sales, but price will be way higher than 10 if it gets there. This stock price will be at 10.00 if they max out their manufacturing facility at 34 million in revenue just on the technology and growth alone. If they ramp that quickly bank loans will be possible instead of major dilution.
I hope they max out production with TIER and ZBB first along with a partnership overseas and Australian facility producing at max.
I like the ring of split adjusted 2:1 trading around 90.00 with a buyout from GE, Eaton or someone else for 135.00....
I just did a quick google screen of companies that are doing several hundred of Millions in sales. The highest P/S ratio of non banks I can find is about 2. Those are basically high growth science and technology companies.
If ZBB is considered a manufacturer I will stand by a P/S ratio of 1 as being very attractive and very stable. But I'm with you on hoping for a lot more.
Interesting question. Do you consider ZBB an energy producing company or an energy storage company? I would agree that the PECC and the aquisition of Tier gives them more of a technological bent but the main product is energy storage. More of a traditional manufacturer. If the product becomes mainstream they will have typical manufacturing stock benchmarks. Hey, any stock can go crazy but 4x sales is awfully high. By the time they could grow to a 4 Billion dollar company ( 8,000 large Zess units per year) the added expansion debt, operating cost, and competitive products on the market will drive the profit margin down.
I will feel very very happy if they can achieve a niche energy storage market with 1 Billion in sales each year. This could account for a $10 per share price if any enthusiasm for the stock existed.