Dow Jones 13500.54 -20.80 7:56 am PDT, May 30, 2007 NASDAQ 2563.87 -8.19 For info, visit access.smallcapnetwork.com S & P 500 1516.31 -1.80 Change your subscription status here Russell 2000 834.18 -3.35 VOLUME 07 : ISSUE 53 Feature: Simple + Brilliant = 'Smart' Investment  Company Name: Smart Energy Solutions Inc . Stock Symbol : SMGY Coverage Initiated: May 30, 2007 Current Price: $0.58 Average Volume: 83,384 52 Week Range: $0.28 - $0.67  Suggested Target: $1.75 Suggested Stop: $0.50 Winning the lottery can make you millions overnight, but let's face it....the odds are slim, and it's a pure-luck proposition. On the other hand, being an astute investor can also be incredibly rewarding, and with significantly better odds. Oh, it might require a little more legwork, but in my experience, taking intelligent investment risks at the right time has yielded better dividends for me than any lottery ticket has. Well, we think we've found one of those stocks right on the verge of a being a big win for its investors. Better yet, we've already done the legwork for you. This company has a major patent, and the potential market is starting to show some real interest. The nice part is, the market is huge. With sales momentum being established, I think demand could skyrocket soon. In other words, I see a very nice right place/right time scenario.  The company is Smart Energy Solutions (OTCBB: SMGY). The device is called a Battery Brain. If you haven't heard of it yet, odds are you will soon. Just keep in mind each time you see the name in the future, it's also apt to mean a few more cents worth of growth for the underlying stock.   The 'Brains' Behind the Idea  Some of the best ideas in the world are also really simple ones, yet they create enormous change. Post-its are now a multi-million dollar franchise, yet who would have ever thought a little slip of paper with sticky stuff on one side could become a crucial form of communication? Disposable diapers? Not rocket-science, but ask anybody who had babies prior to 1950 (when cloth diapers were the only option) whether or not they were a brilliant idea - annual sales are in the billions.  Smart Energy's patented 'Battery Brain' is equally simple, equally brilliant, and I have a feeling it's going to make the same kind of mega-impact in the automotive world. In a nutshell, the device monitors a car battery's charge while the vehicle isn't running, and disconnects the electrical system if it detects the battery is going to lose too much power to actually start the engine. In other words, the Battery Brain won't let you strand yourself if you leave your lights on, or if your car's 'always on' electrical components (like a clock) start to drastically drain a battery.  The first question I asked was 'Why didn't I think of that?' The second question was, 'How can I invest in the idea?'  Better still is the sheer affordability of the device. A basic retail version can be purchased directly through the company for only $59.99, while the price tag on higher-end units are a little more. Either way, they're much cheaper and a heck of a lot more convenient than a tow truck.....pretty much anybody with a car can justify the nominal amount. Translation: Demand could become plentiful, now that the word is starting to spread. Plus, there's a boat version, a heavy truck version, and a car dealer 'add on' version - each of which comes with a little higher wholesale price. Oh yeah, the company can also produce the device and brand/box it under a different name for the right retailers. These different versions each open a whole new world of sales opportunities.    The Final Straw Today's news pretty much drove our opinion into the 'completely on board' column .....the Battery Brain is now going to be carried by the Amethyst Group - one of the top 20 contract logistics providers in the United Kingdom.  A big deal? I certainly think so, but only a drop in the bucket. Check out some of the growth this company has cultivated in just the last few months....  April 30, 2007 - Canadian Tire Corporation agrees to stock the Battery Brain in all their 460 stores.  April 24, 2007 - Smart Energy Solutions and Autolite® enter into an agreement to license the rights to use the Autolite® brand name.  Feb 28, 2007 - Smart Energy Solutions reports it has been granted the federal government’s GSA schedule contract.  Feb 14, 2007 - The company announced that Overton's has signed an agreement and placed orders for the Battery Brain(tm) Marine product line.  Jan 8, 2007 - Smart Energy Solutions announced that O'Reilly Auto Parts has agreed to sell and is now stocking the Battery Brain.  Dec 4, 2006 - Smart Energy Solutions announced a Distribution Agreement with Dextera U.K.  And the list goes on and on.  Did you catch the first dates those new distributors started being added? It was only a few months ago. Now with the sales calls starting to get traction, I've got a feeling the product is close to hitting that 'critical mass' where sales just start to explode.  Simultaneously, Smart Energy may have extra revenue ammunition - there are some truck fleet managers currently evaluating the device. And when we say 'fleet', yes, we mean these companies could be ordering anywhere from a few hundred to a few thousand Battery Brains within a few months.    The Lone Fish In A Big Pond Think about this....there are over 600 million passenger cars currently in use across the globe, not to mention huge numbers of heavy trucks and boats. Each one is a candidate for the Battery Brain device. Over 60 million cars are manufactured every year across the globe.....each of which is also a candidate for the Battery Brain device.  Considering Smart Energy owns the patent and is the sole supplier, they clearly 'own' the market. But, how many of those cars do you think are likely to be fitted with a Battery Brain? A rate of 1% seems ridiculously low to me, but just to be safe, let's think ultra-conservatively here. Do you think a modest 0.1% of the potential existing car market per year is realistic? I do. Now throw in all those 'new car' add-on sales done by dealers, plus all those sold through retailers. Let's not forget all those truck fleet opportunities either. The potential sales number in the tens of thousands - if not hundreds of thousands - of units per year. I think my guess of 500,000 units per year (for starters) is conservative. All the same, if that many are sold over the next few months I estimate the company would be raking in annual revenues of at least $10 million. Plus, more than 99% of the market would still be untapped.  Now factor in merely mild growth. At a penetration of 0.2% of cars already on the road plus just 0.2% of the new car market, annual unit sales could end up being well above 1 million. Then we're looking at annual revenues closer to $20 million, or more.  Compare that to Battery Brain sales of $1.8 million in 2006. See the difference? Not only is the potential for growth enormous, but when we start looking at that kind of sales volume, we're also talking about seeing the company move out of the red and into the black. While I've seen big revenue increases boost stocks, I've seen stocks appreciate even more when a company swings to a profit.   Timing Is Half The Battle Needless to say, we like this opportunity quite a bit right now, but it's not just because of the company's potential success - the chart looks ripe to me as well.  First, look at the support base around the 56 cent level. With only minor exceptions, SMGY has been finding a floor there since March. I like to see stocks holding their ground. In general, the longer a consolidation zone holds up, the stronger it becomes. In the meantime, the few weeks worth of sideways movement may be like the rubber band on a toy airplane - now fully wound up, this thing could really take flight when it's finally released.  Second, I like the volume pattern here. It seems like this stock has really found a market in the last few months, which just so happens to coincide with the introduction of the Battery Brain. True, volume has tapered off in the last few weeks relative to the major wave of accumulation we saw between October and January, but that's what I like - most everyone seems to be hanging in there rather than making an exit. I'm guessing we'll see another accumulation period push this stock upward once the next wave of news starts to spread. I know I personally wouldn't want to miss an event like that.  OK, enough already - you know where I stand. Based on the potential upside I've seen, I suggest a target of $1.75....200% above current trading levels (and that may still be too conservative). The suggested stop level is 50 cents, where the 38.2% retracement level currently is.  I believe the next few months could be a lot of fun for today's investors.    Smart Energy Solutions Signs Distribution Agreement With Leading U.K. Distributor - The Amethyst Group  POMPTON PLAINS, N.J., May 30 / -- Smart Energy Solutions, inventor and manufacturer of the innovative Battery Brain(TM) vehicle aftermarket device, announced that it has finalized an agreement with the Amethyst Group, one of the top 20 contract logistics providers in the U.K., to distribute Smart Energy products throughout the U.K.  The Amethyst Group has over 30 years warehousing and logistics experience in the auto industry. As well as distributing its own aftermarket parts to the car and truck industry it also provides full third party logistics services to a number of major brands in the UK.  "Smart Energy Solutions is pleased that the Amethyst Group has decided to become the Battery Brain distributor in the U.K. and Ireland. They presently sell and have established contacts in all the market segments that our Company is servicing," stated Pete Mateja, CEO of Smart Energy Solutions. "They have the infrastructure in place to quickly develop the market for Battery Brain and provide us with a strong market presence."  "The Amethyst Group is very pleased to be working with Smart Energy Solutions to distribute the Battery Brain range of products in the UK. Battery Brain offers a fantastic solution to a common problem, and the innovative features offered by this product provide customers with peace of mind, as well as significant savings in time and money. We look forward to presenting this exciting opportunity to existing and new customers." David Smith Commercial Manager.  Battery Brain(TM) is Smart Energy's flagship device that constantly monitors electrical discharge of the battery for nearly all kinds of vehicles including autos, SUVs/trucks, medium and heavy duty trucks, military, buses, RV's, boats, commercial vehicles and personal watercraft. Should Battery Brain detect that the battery is losing the required charge needed to start the vehicle's engine, the device automatically disconnects the battery to preserve its starting power. In addition, Battery Brain offers a built-in anti-theft feature and will extend the life of the battery.  About Smart Energy Solutions  Smart Energy Solutions, Inc. (OTC Bulletin Board: SMGY - News; Berlin: UBM.BE - News; Frankfurt: UBM.F - News) is the sole owner of the Battery Brain line of vehicle accessory products. The company is headquartered in Pompton Plains, N.J., with operations in Zhuhai, China, Milan, Italy, Moshav Beit-Nechemia, Israel, Petach Tikva, Israel and Pompton Plains, NJ. Visit www.smgy.net.  About Amethyst Group  Headquartered in Tunbridge Wells, the Amethyst Group focuses on providing logistics for automotive & machinery, toys and consumer products, and clothing and fashion with particular emphasis on integrated e-fulfillment services. The Trading Division sells commercial vehicle parts through a retail dealer network as well as supplying the Ministry of Defence with parts to support the Bedford vehicle fleet.  The Automotive & Industrial Division is headquartered in Staplehurst, Kent concentrating on the automotive and transport industries, MOD suppliers, industrial products and manufacturing sectors.  Its warehouses are mainly centrally located providing excellent locations for national distribution, as well as southern locations ideal for their proximity to Europe.  Forward-Looking Statements:  Actual results could differ materially from any forward-looking statements contained in any Smart Energy Solutions press release. All statements made in this press release are made as of the date of the release and could change due to unknown risks and uncertainties. Source: Smart Energy Solutions, Inc.   We Value Your Feedback   Got comments, questions or suggestions? 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