News Details – Smallcapnetwork
Oakridge Global Energy (OGES), New Global Energy (NGEY) Give an Encore Performance
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February 2, 2024

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PDT

Good Wednesday morning, friends and fellow traders. How does the saying go? When it rains it pours? If we're talking about good news from the SmallCap Network's Featured Stocks, the cliche has certainly been verified this week. This is the third straight day we've had company news that was too big and too urgent to wait until the end of the day to tell you. So, once again you're hearing from us early in the morning. You'll understand why in just a few moments. It's another double-shot too, with news from Oakridge Global Energy Solutions (OGES) and New Global Energy (NGEY). In no certain order... If you thought Oakridge Global Energy Solutions logged an impressive performance at the Orlando PGA Merchandise Show by virtue of its $250,000 in sales and $20 million worth of commitments, you may want to take a seat -- the company will be in attendance at an even bigger event next week, speaking to a crowd even more rabid than golfers... bikers. The specifics: Oakridge Global Energy Solutions will be selling its long-life lithium batteries at this year's Daytona Beach Bikefest, scheduled for March 4th through March 14th. The company's lithium-ion batteries are ideal for motorcycles, many of which aren't ridden on a regular basis to recharge the cell. The charge on an Oakridge battery can last for months (years, actually), and better still, the bigger batteries necessary to start bigger bikes weigh almost 20 pounds less than the usual lead-acid batteries necessary to get a big motorcycle engine going. For a motorbike, that's a big deal. The specs underscore something we've said several times now - anything that requires a battery is made better with a battery from Oakridge Global Energy Solutions. And if you think golfers are a big market and willing to spend big to get the best equipment for their hobby, you haven't seen anything yet. We found some amazing numbers about motorbikes too, just in the United States. One of them was simply that nearly 500,000 motorcycles were sold in the U.S. last year. Another 10 million, give or take, are already on U.S. roads. That's a lot of potential customers, and it's not like Oakridge Global Energy is going to limit itself to the United States. I don't know how much a motorcycle battery from Oakridge's Liberty Series costs, but if it's the fairly typical $100 for a decent one - which lasts an average of a couple of years - we're talking about an annual market worth roughly $500 million per year. Even if Oakridge Global Energy Solutions only scores a tenth of that, we're still talking about $50 million in the year... and that's just in the U.S., and that's just the motorcycle battery market. Again, the overall global battery market is worth $50 billion per year. It's worth more than $10 billion in the United States alone. That whole market is ultimately going to be addressable by OGES. As a reminder, Oakridge recently suggested it was looking for 2016 revenue of around $140 million, with a ramp-up to $1 billion per year by 2020 once consumers and businesses understand just why the company's solid-state lithium-ion batteries are better in every possible way. The biggest of those reasons is simply that they can store 25% to 30% more power. And we still contend if OGES shares can break past the upper edge of their converging wedge pattern, the ensuing move will be too hot to chase. Today may well be the catalyst. As for New Global Energy, we talked at length on Tuesday about how it was preparing to take the budding moringa market by storm. So, we won't get into all of that again. We'll just refer you back to yesterday's edition if you want the specifics. Today we just want to focus on a whole new line of incredible news - the company has authorized a stock repurchase of up to 600,000 shares. It's not a lot of shares... for a large cap. For NGEY, though, it's huge. There are only 13.9 million shares issued and outstanding as of the most recent SEC filing. The reported float is even less, at 11.9 million shares. The public float is even less than that. Although those specifics don't exist (that I could find), CEO Perry West suggested the repurchase program would whittle the publicly-held float down by about 25%. It means the buyback authorization is going to take a big bite out of the current float, which in turn means better fiscal performance on a per-share basis going forward. New Global Energy also told investors it had just started this year's tilapia breeding season with a record number of fish, so we're looking for a big year on that front as well. The buyback news is the big news for today, though, and would be the centerpiece of our focus here were it not for the chart. Remember yesterday we mentioned the $0.60 level was a key technical resistance line, holding the stock back? It was obliterated on Tuesday. So was the 100-day moving average line. Take a look. The breakout alone was enough to get excited. Today's news about the stock-buyback will only fan those bullish flames. Yep, it's most definitely a good week to be a fan of penny stocks.