ES, APWR, HEAT, CELM, PLUG, UQM, Alternative Energy Stocks 11.09% undervalued
February 28, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Alternative Energy sector and these stocks are the most undervalued as of today. ENERGYSOLUTIONS INC (NYSE:ES), A-POWER ENERGY GENERATION (NASDAQ:APWR), SMARTHEAT INC (NASDAQ:HEAT), CHINA ELECTRIC MOTOR INC (NASDAQ:CELM), PLUG POWER INC (NASDAQ:PLUG), UQM TECHNOLOGIES INC (AMEX:UQM) are all expected to go Up as they are undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.
The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:
Symbol Company Name Last Close Fair Value Valuation Industry ES ENERGYSOLUTIONS INC 6.82 7.67 11.09% undervalued Alternative Energy APWR A-POWER ENERGY GENERATION 5.555 8.28 32.87% undervalued Alternative Energy HEAT SMARTHEAT INC 4.69 8.33 43.70% undervalued Machinery - Electrical CELM CHINA ELECTRIC MOTOR INC 3.91 4.5 13.07% undervalued Machinery - Electrical PLUG PLUG POWER INC 0.7446 2.28 67.40% undervalued Machinery - Electrical UQM UQM TECHNOLOGIES INC 3.29 3.64 9.72% undervalued Machinery - Electrical
Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.
Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.
ENERGYSOLUTIONS INC (NYSE:ES) - EnergySolutions, Inc. provides technology-based nuclear services to government and commercial customers in the United States and internationally. The company operates in four segments: Federal Services; Commercial Services; Logistics, Processing, and Disposal (LP&D); and International. The Federal Services segment engages in the management and operation or clean-up of the U.S. Department of Energy facilities that are contaminated by radioactive materials. It offers onsite characterization, sorting, segregation, transportation, management, and disposal of classified and unclassified solid and liquid low-level radioactive waste, mixed low-level waste, and other special wastes. This segment also performs decontamination and decommissioning (D&D), and demolition of facilities, including the disposal of radioactive materials; and provides D&D, processing, and disposal services to the U.S. Department of Defense. The Commercial Services segment offers a range of onsite services, including project planning, site surveys, radioactive material characterization and management, liquid waste processing, spent nuclear fuel, emergency response, and other nuclear services to commercial customers comprising commercial power and utility companies that operate nuclear power plants, pharmaceutical companies, research laboratories, universities, industrial facilities, and other entities that generate radioactive materials. The LP&D segment provides various logistics, processing, and disposal services, as well as owns and operates facilities for processing and disposal of radioactive materials. The International segment operates, defuels, and decommissions 10 nuclear power sites, as well as provides services for the disposal of radioactive sources from non-nuclear power generating facilities, such as hospitals, research facilities, and other manufacturing and industrial facilities in Europe and Asia. The company was founded in 1988 and is based in Salt Lake City, Utah.
A-POWER ENERGY GENERATION (NASDAQ:APWR) - A-Power Energy Generation Systems, Ltd., through its subsidiaries, provides onsite distributed power generation systems and micro power grids for industrial companies primarily in the Peoples Republic of China. It designs, constructs, installs, and tests distributed power generation and micro power grids as stand-alone facilities for various customers in the steel, chemical, ethanol, cement, and food industries. The company also offers automatic control systems to monitor the performance of equipment in the system, including the boiler, turbine, generator, grid supply, and demand and distribution, as well as space and water heating functions. In addition, it manufactures and sells wind turbines. Further, the company involves in the design and production of equipment for manufacturing PV cells and solar panels. A-Power Energy Generation Systems, Ltd. was founded in 2003 and is headquartered in Shenyang, the Peoples Republic of China.
SMARTHEAT INC (NASDAQ:HEAT) - SmartHeat Inc. designs, manufactures, sells, and services plate heat exchangers (PHE) and related systems used in the industrial, residential, and commercial markets in the Peoples Republic of China. The company offers PHEs; PHE Units, which combine PHEs with various pumps, temperature sensors, valves, and automated control systems; and heat meters for use in commercial and residential buildings. Its products and systems are used in various applications, including energy conversion for heating, ventilation, and air conditioning; and industrial use in petroleum refining, petrochemicals, metallurgy, food and beverage, and chemical processing. The company sells PHEs under the Taiyu and Sondex names; and PHE units under the Taiyu name. It markets its products through its sales force, as well as through a network of 26 national distributors. SmartHeat Inc. was founded in 2002 and is headquartered in Shenyang City, the People's Republic of China.
CHINA ELECTRIC MOTOR INC (NASDAQ:CELM) - China Electric Motor, Inc. engages in the design, manufacture, sale, and marketing of micro-motors and micro-motor components in the People's Republic of China and internationally. It offers micro-motors and micro-motor components for various applications in automobiles, power tools, home appliances, and consumer electronics. The company provides direct current motors, including brushless motors, brushed motors, servo motors, and gear motors; and alternating current motors, such as single and multiphase motors, universal motors, servo motors, induction motors, synchronous motors, and gear motors. It also offers drives; and mechanical power transmission products comprising mounted bearings, enclosed shaft mount, helical and worm gearing, bearings, sheaves, and conveyor pulleys. The companys mechanical power transmission products are used in various applications and industries, including mining, petroleum, aggregate, unit handling, power generation, and package handling. China Electric Motor, Inc. sells its products under Sunna brand name. It sells its products directly to original equipment and automobile manufacturers, and distributors and resellers, as well as through its Web site. The company is based in Shenzhen, China.
PLUG POWER INC (NASDAQ:PLUG) - Plug Power Inc., a development stage enterprise, involves in the design, development, and manufacture of fuel cell systems for industrial off-road markets and stationary power markets. The company develops and sells a range of fuel cell products and services, including hydrogen fuel cell low-temperature Proton Exchange Membrane (PEM) systems for motive and stationary power and a high-temperature fuel cell system for residential and light commercial co-generation. Its primary product line includes GenDrive, a hydrogen fueled PEM fuel cell system to provide power to industrial vehicles; and GenSys, a liquid petroleum gas (LPG) fueled continuous prime power system that supports remote prime power applications, principally for the telecommunications sector. The company sells its products to business, industrial, and government customers worldwide through its direct product sales force, and original equipment manufacturers (OEMs) and their dealer networks. Plug Power has a strategic agreement with Hindustan Petroleum Corporation Limited to ensure proper fuel support at various remote cell tower locations in India. The company was founded in 1997 and is based in Latham, New York.
UQM TECHNOLOGIES INC (AMEX:UQM) - UQM Technologies, Inc., together with its subsidiary, UQM Power Products, Inc., engages in the research, development, and manufacture of permanent magnet electric motors and electronic controllers. It operates in two segments, Technology and Power Products. The Technology segment conducts research and engineering activities directed towards the development of new motors, generators, and power electronics to meet the requirements of customers specific product applications; integration of its motors, generators, and power electronic controllers into customers' products; and support of its Power Products segment and the manufacture of motors, generators, and power electronic controllers. The Power Products segment manufactures and sells motors, generators, power electronic controllers, and related products for electric, hybrid electric, and fuel cell electric vehicles. Its products include electric and hybrid electric propulsion systems, higher power engine generators, electric auxiliaries, DC-to-DC converters, DC-to-AC electronic power inverters, generators, propulsion motors, vehicle auxiliary actuator motors, electric auxiliary motors, auxiliary power units, motor controllers, wind turbine power generators, solar panels, and stationary fuel cell power generators. UQM Technologies primarily serves the automotive, agriculture, industrial, medical, and aerospace markets. It has a collaboration agreement with BorgWarner Inc. to develop electric powertrain products for all-electric and hybrid-electric passenger automobiles. The company was founded in 1967 and is headquartered in Frederick, Colorado.
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