CPTC.OB update

http://stockcharts.com/charts/gallery.html?cptc

CNBC commentator Jim Cramer (Mad Money) has become VERY bullish on wind power and won't recommend CPTC.OB (too small, too illiquid, etc.) Although it is one of the best pure plays on wind power the charts/technical analysis seem to indicate that the ST run-up might be over unless some major contracts are announced. The stock is flirting with breaking through the 20 day moving average and support area.

Dan Ross
http://BetterBizIdeas.com

CPTC.OB update

First they trim out expenses in their DeWind Energy Unit by using TECO Westinghouse (North of Austin I believe) to manufacture their products.

This was announced monday a.m.
http://biz.yahoo.com/iw/080602/0402572.html

They then headed off to an RBC Energy Conference and did this presentation, which can be downloaded from their website.
http://www.compositetechcorp.com/Press%20Releases%20-%20PDF/RBC%2008-06-02%20Presentation%20v7%20final.pdf

Today/Tomorrow I believe they are at the Wind Energy Conference in Houston Texas
http://www.windpowerexpo.org/attendee_list.cfm

Volume was 2.4 million today but I haven't see any breakout in the stock price. I bought $1000 more at $1.09 after selling some ABAT that I didn't think was going to move up in the short-term.

Dan Ross
http://www.BetterBizBooks.com

Speculative Stocks - ie. Penny stocks / microcraps

I am NOT a fan of these stocks, in general, as most are STORY stocks (ie. sound great but there is little actual long-term sales/profits, which generate long-term shareholder returns & they typically have VERY poor financials with potential cash flow issues. <--potential bankruptcy). Stocks trade cheap for a reason is the bottom line.....You typically get what you pay for....

Microcap stocks typically have market capitalizations < $250 million or sales that

Having said that, if you find a good company/story that ACTUALLY starts to generate actual sales early on you can make a BOATLOAD of $$$. I've seen 20 cent stocks become $10 stocks again and again, $1 stocks go to $10 to $20, etc. It DOES happen.

Here are two companies I think are worthy of me putting $1000 into them. I'll tell you why I like them over the next two days and what I am doing....

Composite Technologies

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_C/threadview?m=tm&bn=45739&tid=6189&mid=6189&tof=1&frt=1

1) wind energy play <--DeWind Turbines that is currently sucking capital out of the company....losing $$$$

2) great growth in one part of their business <--wire segment, growing at ENORMOUSLY fast rates

3) Recent CS (credit Suisse injection of capital) w/ potential for more

4) Upcoming wind conference (in attendance Tues/Wed)

5) Apparently some visits to 2 analysts in the next week (RBC/Jeffries)

6) Bottom Line is that by the end of June I should know if these folks have capital and whether or not they will get any orders / sales of wind turbines. That is really the play here since that part of the business is so capital intensive. If they don't I'll sell the shares and move onto another "MICROCAP stock"

CONS

Weak financials and a high cash burn rate. If the darn wind energy side of the business doesn't start generating substantial cash in the near-future this company could go under within a few years based on cash burn rates, etc. They would still have options but.....

In order to get BIG wind turbine energy sales (which the Chinese are now exporting) you need to be WELL funded, which they aren't. If they get some funding (potentially more dilution) they may get a 2nd life, which would actually generate MORE sales for the company and probably shareholders over the long-term.

Either way, this week the company's shares may get rocking or rolling. I bought $1000 at about $1.02 and, at $1.08 I am ahead but this just gives me an uneasy feeling buying stocks like this.....kind of like gambling.....At $1.08 their market cap is significantly ahead of a valuation that their sales warrant but, if they get one big order, it is OFF the races.

Dan Ross

http://www.betterbizbooks.com/

Interesting Wind Energy Articles

1) OGE
http://phx.corporate-ir.net/phoenix.zhtml?c=106374&p=IROL-singlerelease&t=NewsRelease&id=1147898

2) T Boone Pickens Tampa Project
http://www.cnbc.com/id/24723260

3) China's 2007 Wind Energy Report
http://www.gwec.net/uploads/media/wind-power-report.pdf

One thing never really discussed much, within those articles, is how important it is to have good transmission lines. When you produce the energy you then have to get it "onto the grid" where the power can be transmitted over long distances or you can use it locally, "off grid." Either way, you still need to get the energy to whatever resources are using the energy.

When transmitting energy cable matters. Different cables (much of it quite antiquated) have different power loss ratios due to thermal limits. Remember, we generate power, then transmit it, then distribute it (from substations where the power is lowered into levels used by consumers). The only reason I bring this up is because TRANSMISSION problems were a core problem involved in the California Energy Crisis. That and crooked energy traders/de-regulation.
http://en.wikipedia.org/wiki/Energy_transmission

You can retrofit existing towers with better cable. There is one company that has both wind turbines and claims to have a "smarter wire" and has a patent for it, increasing revenue and a recent injection of capital from CSFB but, in my opinion, it is highly speculative. The stock has a market cap of $200 million and is traded on the bulletin board as

http://finance.yahoo.com/q?s=CPTC.OB

As you can tell from the wind energy report lots of companies are trying to produce wind energy components & there is a pent up demand for it as well. There are operators ramping up throughout the world, trying to produce more and more energy from wind (as well as solar). I personally believe that the solar energy stocks have gotten ahead of themselves, in the short-term, but we'll see over time :)

Dan Ross
http://betterbizbooks.com/