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VOLUME 07 : ISSUE 57
Get
Smart! A New Idea In An Old Industry
Company
Name:
Smart
Energy Solutions Inc .
Stock
Symbol :
SMGY
Coverage
Initiated:
May
30, 2007
Current
Price:
$0.56
Average
Volume:
87,845
52
Week Range:
$0.28
- $0.67
Suggested
Target:
$1.75
Suggested
Stop:
$0.50
Ever
had your car battery go dead at the most inopportune time? Ever
had a vehicle stolen even though you had an alarm system? I have, and so
have millions of others....and the key term there is "millions of
others".
The
Small Cap Network recently identified a company we believe is poised to
tap into the full potential of the dead-battery dilemma. More importantly,
the company has the business model to capitalize on this huge market, not
to mention the patent to protect itself and its investors.
The
company is called Smart Energy Solutions Inc. (OTCBB:
SMGY). Their device is called the 'Battery Brain', and I believe
it may quickly become a standard device in vehicles everywhere. The Battery
Brain is an easy-to-install device that prevents a car battery's charge
from dropping to levels too low to start the engine. Better still, a driver
can own a Battery Brain for less than $100 (which is much less than a tow
truck).
Simple?
Yep, which is the beauty of the investment (and why I think SMGY shares
could be very rewarding over the next few months). We're guessing the stock
could be worth three times as much where it's currently trading when the
company gets to firing on all cylinders.
It's
Not Rocket Science
So
what do I really like about the company? A lot actually, but one
thing sticks out - this whole idea is simple from top to bottom.
If you prefer to invest in companies with a tangible, highly-marketable
product being sold right now, then I believe Smart Energy fits the
bill perfectly.
Unlike
a biotech opportunity, the success of the product doesn't hinge on a future
FDA approval. And, it's not like the market won't understand how to use
a Battery Brain - if you can use basic hand tools, you can install one
yourself. And yes, they work exactly as designed.
There
are three other details completely convincing me this opportunity could
be huge. See if they get your attention too.
1)
There are 600 million current potential customers
2)
There are 60 million new potential customers created every year
3)
Thanks to a patent, nobody else can squeeze themselves into the market
for years to come
Obviously
those 'customers' are automobiles, but the numbers speak bluntly to the
size of the market SMGY owners may be about to benefit from.
The
nice part for today's investors is the potential sales growth looming on
the horizon. The company is expecting to sell a few hundred thousand Battery
Brains in 2007.....against a backdrop of a market with millions and
millions of potential buyers.
Moreover,
considering some major truck fleets (both government and private) are currently
evaluating the device, I suspect unit sales could number in the millions
within a couple of years. Oh wait - did we mention there's a huge car dealer
'add on' market out there already putting the device in their new inventory
as an upgrade?
Not
only is the company's story a good one, but to me, the potential size and
growth of the market just looks plain sexy for investors.
Timing
Is Half The Battle
Fine
- a good idea, but why now? I see a handful of reasons why now may
be the right time to invest, but three of them are more than enough for
me.
First,
as far as the company is concerned, I believe the time is 'now' because
the Battery Brain is in the sweet spot for new product introductions.
There's
a very thin line between certainty and uncertainty when it comes to a new
idea catching on or not. Take CD players for instance. In the mid-80's
it wasn't clear whether they'd be able to uproot cassette tapes as the
preferred way of storing music. By the early 90's though, it was clear
they had assumed the role. The optimal risk-versus-reward time to enter
the CD-player market would have been in between those two points....less
risk, but plenty of potential. MP3 players are now doing it to CD players,
and their manufacturers are raking in the loot hand over fist.
Another
key to these kinds of paradigm shifts - they don't have to be complicated....they
just have to affect major change. I'd put Post-Its (tm) and paper clips
in this category. They aren't complex, but their simple brilliance has
made a major social impact in addition to being highly lucrative
for their inventors.
Likewise,
I think the Battery Brain is past its uncertainty stage, but has yet to
blatantly become the standard in auto-care....yet. However, considering
retailers have started to place re-orders while more and more
dealers are being signed, I feel the best time to invest is right now
- in the sweet spot where investor risk is largely abated, but the potential
buying interest in the stock (or the device) isn't played out.
Second,
as far as the stock is concerned, I think the time is 'now' because the
story hasn't yet been told to most of the market.
Ask
yourself this question....what do you think's going to happen when other
investors and fund managers start studying this stock? Smart Energy has
real
sales and real growth potential right now - not some sort
of conceptual revenue potential to be tapped later. And, Smart Energy's
patent makes them 'the' player in this market.
In
my opinion, the product and business plan's simplicity is going to attract
a lot of attention. If demand starts to outpace supply by as much as I
think it could, I'm looking for shares to seriously appreciate in a fairly
short amount of time.
The
Grand Finale
My
third reason? Today's news. It's the icing on the cake, the way I see
it. The Battery Brain has penetrated yet another overseas market.
Telstar Trading will be promoting their private-label version of the Battery
Brain to the Royal Dutch Touring Club's 3.5 million members, through the
organization's magazine (the Royal Dutch Touring Club is their version
of AAA). Telstar has several other marketing venues as well. See the full
press release below.
While
the Telstar news is a big deal, I think the more important message
here is how Smart Energy can and will think 'overseas'. In fact,
they've already done a great deal of business outside of the United States,
but today's news makes it clear to me the company is plenty capable
of adding the final ingredient to the mix - sales.
Based
on the kind of sales growth we think this company may be able to produce,
we're suggesting a target of $1.75, which is more than 200% above the
current trading level. Our suggested stop is 50 cents. On a side note,
I've been very impressed by how well SMGY has stood up to the recent wave
of weakness (particularly in small caps) and held its ground....yet another
reason.
I personally
think (and no pun intended) SMGY is a no-brainer. I suspect other investors
will too when they hear the story. Any newly-cultivated demand could drive
shares up in a hurry, leaving a lot of interested traders thinking "Why
didn't I then?" simply because they didn't take action early on when
they could have. I wouldn't want any of our readers to miss out on a great
opportunity today.
Smart
Energy Solutions Completes Shipment of Battery Brain to Royal Dutch Touring
Company
POMPTON PLAINS,
N.J., June 11, 2007 (PRIME NEWSWIRE) -- Smart Energy Solutions, Inc. (OTCBB:SMGY),
inventor and manufacturer of the innovative Battery Brain(tm) vehicle aftermarket
has completed shipment of the new Platinum Series Battery Brain, as a private
label program, to Telstar Trading, a supplier to The Royal Dutch Touring
Club (ANWB). It is being promoted through ANWB's magazine to the club's
3.5 million vehicle owners in the Benelux plus an extensive public relations
program that has covered 125 automotive magazines and 130 transport magazines
as well as local newspapers. ANWB's members will be able to purchase Battery
Brain(tm) products at a discounted price at their 130 retail stores and
through their internet site.
The Battery Brain
Platinum is a new addition to the product line-up which is a patented innovative
accessory that easily installs to any vehicle battery. Using unique micro-electronic
technology it continually monitors the battery power. When Battery Brain
Platinum detects power falling below the level required to start the engine,
it automatically isolates the battery from the electrical system. Specially
designed to protect accessory memory and presets it also has the ability
to disconnect the battery from the electrical system to act as an anti-theft
device. Battery Brain Platinum ensures that the vehicle owner will always
have enough battery power to start their engine and the anti-theft feature
provides them with added security and peace of mind!
Telstar Trading
focuses primarily on the development, production and distribution of consumer
products, for which the ANWB is an important commercial partner. Together
with the ANWB, Telstar Trading develops ANWB-specific products like Battery
Brain.
This announcement
coupled with the recent announcement of the appointment of the Amethyst
Group expands Smart Energy Solutions distribution into the European market.
About Smart Energy
Solutions
Smart Energy Solutions,
Inc. (OTCBB:SMGY) (Berlin:UBM.BE)
(Frankfurt:UBM.F) is the sole owner of the Battery Brain line of vehicle
accessory products. The company is headquartered in Clifton, NJ, with operations
in Zhuhai, China, Milan, Italy, Petach Tikva, Israel and Pompton Plains,
NJ. Visit http://www.smgy.net.
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.
Contact:
Liebler!MacDonald
Press Contact:
Bruce G. MacDonald
248-233-8062
bmacd@liemac.com
Smart Energy Solutions,
Inc.
Investor Contact:
Ed Braniff, CFO
973-340-6000
ebraniff@optonline.net
Press Release
Source: Smart Energy Solutions, Inc.
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