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PLUG, UQM, CPST, CELM, HEAT, MTB, Machinery - Electrical Stocks 67.40% undervalued


Published on 2011-02-28 10:20:25 - WOPRAI
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February 28, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Machinery - Electrical sector and these stocks are the most undervalued as of today. PLUG POWER INC (NASDAQ:PLUG), UQM TECHNOLOGIES INC (AMEX:UQM), CAPSTONE TURBINE CORP (NASDAQ:CPST), CHINA ELECTRIC MOTOR INC (NASDAQ:CELM), SMARTHEAT INC (NASDAQ:HEAT), M & T BANK CORP (NYSE:MTB) 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               
     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 
     CPST       CAPSTONE TURBINE CORP               1.51           1.72           12.21% undervalued          Machinery - Electrical 
     CELM       CHINA ELECTRIC MOTOR INC            3.91           4.5            13.07% undervalued          Machinery - Electrical 
     HEAT       SMARTHEAT INC                       4.69           8.33           43.70% undervalued          Machinery - Electrical 
     MTB        M & T BANK CORP                     88.56          90.15          1.76% undervalued           Banks - Major Regional 

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.

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.

CAPSTONE TURBINE CORP (NASDAQ:CPST) - Capstone Turbine Corporation develops, manufactures, markets, and services turbine generator sets and related parts for use in stationary distributed power generation applications. Its stationary distributed power generation applications include cogeneration, combined heat and power (CHP), integrated CHP, resource recovery, and power, as well as combined cooling, heat, and power; and its products are used as battery charging generators for hybrid electric vehicle applications. The company also offers microturbine units, subassemblies, components, and various accessories, including rotary gas compressors with digital controls, heat recovery modules for CHP applications, dual mode controllers that allow automatic transition between grid connect and stand-alone modes, batteries with digital controls for stand-alone/dual-mode operations, power servers for large multipacked installations, and protocol converters for Internet access, as well as frames, exhaust ducting, and installation hardware. In addition, it remanufactures microturbine engines; and provides after-market parts and services, scheduled and unscheduled maintenance, and factory and on-site training services. The companys microturbines are fueled by various sources, including natural gas, propane, sour gas, landfill or digester gas, kerosene, diesel, and biodiesel. It sells its products primarily through distributors, original equipment manufacturers, and end users in North America, Asia, Europe, and the Russian Federation. Capstone Turbine Corporation was founded in 1988 and is based in Chatsworth, California.

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.

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.

M & T BANK CORP (NYSE:MTB) - M&T Bank Corporation operates as the holding company for M&T Bank and M&T Bank, National Association that provide commercial and retail banking services to individuals, corporations and other businesses, and institutions. It offers business loans and leases; business credit cards; deposit products, including savings deposits, time deposits, NOW accounts, and noninterest-bearing deposits; and financial services, such as cash management, payroll and direct deposit, merchant credit card, and letters of credit. The company also provides residential real estate loans; multifamily commercial real estate loans; commercial real estate loans; residential mortgage loans; investment and trading securities; short-term and long-term borrowed funds; brokered certificates of deposit and interest rate swap agreements related thereto; and offshore branch deposits. In addition, it offers foreign exchange services. Further, the company provides consumer loans, and commercial loans and leases; credit life, and accident and health reinsurance; and brokerage, investment advisory, and insurance agency services. As of December 31, 2009, it had 793 banking offices in New York State, Pennsylvania, Maryland, Delaware, New Jersey, Virginia, West Virginia, and the District of Columbia, as well as a branch in George Town, Cayman Islands. The company was founded in 1969 and is headquartered in Buffalo, New York.

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