Good Wednesday morning, one and all.
As promised, today we've got a new trading idea for you as a way to capitalize on the brewing growth (finally) of the LED lighting market we detailed on Friday.
The usual penny stock caveats apply, of course. Those are, use smart limits and stops to protect yourself, and never allocate more to one of these positions than you can afford to lose. On the flipside, risk-versus-reward is the name of the game, and today's name has a lot of potential relative to the risk it poses. That's why we're thrilled to be giving all of you this first look.
Cutting to the chase, the newest Featured Stock at the site is Eco-Shift Power Corp. (ECOP), and as usual, there's a bit of a backstory. We'll get to that in a moment.
Simply put, Eco-Shift Power manufactures LED -- short for "light-emitting diode" -- light bulbs that consumers and businesses actually want.
While the LED "bulb" has finally been accepted as a replacement for the traditional at-home incandescent bulb or even the CFL bulb, this just doesn't maximize the best aspect of LEDs... the money-saving benefit of LED lighting. They use up to 90% less electricity than traditional bulbs, which means these things do institutions (big buildings, parking lots, etc.) a lot more good than they do individuals. Besides, the consumer-level light bulb market is already pretty crowded. The big money in at-home bulbs is on the wholesale side of the table.
In response to the need/opportunity, Eco-Shift Power has reformatted its LED light portfolio into something far more useful and marketable. Indeed, it wouldn't be out of line to say the company went through a total paradigm shift.
Case in point: You know the street lights that light up the roadways at major intersections when it's dark outside? You can't just go down to your local Lowe's or Home Depot, buy a crate of 40-watters and send a guy up on a ladder to change 'em out. It takes a special kind of bulb. For a long while these were sodium vapor bulbs, but with the advent of LED technology, street lights can now utilize LED lamps.
Eco-Shift Power makes those lamps (among others)!
They're quickly becoming a favorite among road crews too, as these lamps last an amazing 50,000 hours each, and use as little as one-fifth as much power as traditional sodium vapor light bulbs. That means road crews have to change them less often, and they cost little to operate. That's huge, as the nation spends about $7 billion per year just to power these light poles.
ECOP makes a ton of other industrial-market LED lamps and fixtures too, though one can't help but wonder if the street light market alone is a game-changer. Some estimates say the use of LED street lamps will grow 400% by 2020, yet that would still only scratch the surface of the United States' 26 million street lights. And that's just one country!
And in conjunction with its LED lighting products aimed at cost-conscious institutions, it also offers sotware which allows facility managers to have complete control over their LED lights - and power usage - at any given time.
The other big specialty Eco-Shift Power offers is vintage-looking lamps.
Those of you who've shopped for lighting fixtures of late have likely considered the look of your usual LED bulb in a fixture designed to show an exposed bulb. An antique-looking fixture and shade just doesn't look right with a plastic and metal orb glowing bluish-white. ECOP understands the importance of the right "look", so has introduced what look like old-timey Edison style bulbs that glow yellowish, but are actually LED lights. All of a sudden, homeowners can have the best of both worlds.
You get the idea -- Eco-Shift Power understands form and function have to meet for consumers (individuals as well as institutions) to adopt them. It matters.
As for why now is the time to take a closer look at ECOP, here's where the backstory starts.
About a year ago, Eco-Shift fell off the radar. This wasn't bad luck. It was largely by design. While LED bulbs were and still are a great business, the right tools and right team weren't in place for Eco-Shift at the beginning of 2015 to make and market LED lighting the way it needs to be made and marketed. A whole new management team was brought in eleven months ago, and they literally began overhauling everything about the company. It's no longer just a maker of LED bulbs. Now it's a solutions provider, and today is the proverbial coming out party for the new business model.
The full press release is below, but can be summed up with just one brief observation: Eco-Shift Power just flipped the proverbial "on" switch for its new and improved company... no pun intended.
The new ECOP is one built from the ground up to (1) manufacture white-label consumer products for companies with established brand names but not the capability of making their own quality product, (2) leverage its strong supplier and distribution relationships, and (3) fully utilize its manufacturing capabilities and capacities. These ideas have been cultivated for a while, but this is the first time they're all being unveiled in a deliberate, congruent effort.
In other words, ECOP has altered itself into a company designed to sell LED lighting in 2016 and beyond. Bigger, specialty bulbs are where the opportunity is, and to the extent at-home consumer bulbs account for the market, it just makes more sense to be a supplier rather than a retailer.
Now, those of you who've happened to follow Eco-Shift Power Corp. for a year or more will also know the stock followed the company off the radar, moving from $0.20 per share a year ago to a low of $0.005 just a month ago. That's what we love about the opportunity. The market pretty much dismissed the company altogether. Big mistake. The company wasn't going away. It was just regrouping.
That said, you have to love the way the stock's been acting of late, largely anticipating this day was coming.
Take a look. Clearly something changed in late December. Stocks usually don't make such a strong turn on accident. This turnaround story didn't even become official until today, but like so many of the market's best story stocks, some traders are able to put two and two together before the fact.
Just think what the stock could do now that the company has flipped the "on" switch, not just on the sales front, but on the publicity front too.
Look, nobody has a crystal ball, so nobody really knows what the future holds. From a risk-vs-reward perspective though, we see ECOP as an outstanding speculative idea... particularly with the stock still trading near multi-year levels at the very point in time when the company's got the more going for it than it's ever had going for it in the past. The LED lighting market has never been better primed, and ECOP now understands exactly how to approach it. At stake is what will soon be a $30 billion market. It would only take a tiny sliver of that market to be a windfall for this $2.7 million company
In other words, this turnaround story looks like it just made the big turn at the right time. We think the rest of the market could figure this out real soon. As always, be penny-stock-smart about position-sizing and stops/limits.
Here's the press release, posted just a few minutes ago.
Eco-Shift Launches 2016 OEM/ODM Product Lines and Catalogs; Sees Record Financial Results Ahead for FY-2016
CAMBRIDGE, ON--(Marketwired - Jan 27, 2016) - Eco-Shift Power Corp. (OTC PINK: ECOP), a leading global producer of advanced lighting products, today announced the launch of its 2016 lineup of OEM products and new product catalogs.
The new, 2016 product lines reflect the Company's fundamental shift over the past year from a capital and labor-intensive model of designing, manufacturing, marketing and installing retrofit lighting products -- to one that capitalizes on Eco-Shift's extraordinary manufacturing capability. This enables the Company to focus on producing state-of-the-art LED and other energy efficient lighting products white-labeled for major, global lighting distributors and their industrial, corporate and retailer clients.
Eco-Shift's change in business model has been underway since new management was recruited eleven months ago to lead a turnaround that enables the Company to capture significant global market share -- profitably -- of an industry that analysts project growing at 30 percent annually. Accordingly, the Company expects to report record financial results for the full year 2016.
"This an exciting time at Eco-Shift Power," said its Chief Executive Officer, Alistair Haughton. "Publicly, 2015 was a quiet year for our company. Behind the scenes, it was all about transforming our business model to leverage our strengths and reduce risks. Today, that year of hard work, investment and relationship building is paying off handsomely. Preliminary feedback on our 2016 product catalogs from our growing customer base is extremely positive. We are actively working with our industry leading distributors on initial order workups in anticipation of follow-on orders for big-brand end-users, at healthy gross margins, for 2016 and beyond."
Eco-Shift is distinguished competitively by its deep, worldwide relationships with many of the top OEMs and distributors, and its commitment to providing unrivaled levels of service that includes a drop-ship model and ability to white label products to serve established in-market product lines.
Eco-Shift's competitive advantages include the lighting industry's highest quality products and components, practically unlimited manufacturing capacity, with the industry's best warranty programs to meet growing market demand worldwide. Its new, 2016 product catalogs are available at: www.eco-shiftpower.com/?page_id=155. The Company is currently upgrading its website that is expected to be ready next month; it will include a robust Distribution Channel Partners, and Investors, section.
The Company serves product market segments including:
Filament line (traditional and old world styles) hotels, residential, food industry
Commercial/Industrial (high bay, linear tube, flat panel, PAR, etc.) hotels, automotive retail, outdoor spaces, office space, large venues - stadiums/arenas, schools, etc.
Specialized (vapour tights, greenhouses/horticulture, task lighting, inspection lighting, medical, military, etc.) mining, automotive manufacturing, paint booth, agriculture, livestock, etc.
Lighting Technology: The Time is Now
With many tens of millions of dollars invested in lighting industry R&D and engineering by its major players, the state of LED and other advanced lighting technology has reached a level of design maturity and efficiency ideally suited to be combined with Eco-Shift's exceptional contract manufacturing expertise. Compatible with the most technologically advanced lighting energy management systems and cloud-based software, our full product lines offer compelling energy savings for a high customer ROI and short investment payback.
All of the components used in Eco-Shift's products are manufactured and underwritten by industry leaders, bringing comfort to all stakeholders while allowing the Company to offer the industry's leading products without the R&D expense. The Company is not restrained by brand, and is able to acquire and match the best of breed from each sub component manufacturer and combine them to deliver a superior product.
Eco-Shift has built distribution partnerships that provide deep connectivity into the industry's four key market segments:
Walk in retail (big box store, independents) and high volume sales
Online sales
Facility Management Companies with a global footprint and includes hotels, offices, industrial spaces, etc.
Commercial sales including contractor sales, specialized electrical distributors.
According to industry research firm Transparency Market Research, The global industrial and commercial LED lighting market was worth US$12.9 billion in 2012 and is expected to reach US$86 billion by 2019, growing at a CAGR of 30.8% from 2013 to 2019.
About Eco-Shift Power Corp.
Headquartered in Cambridge, Ontario, with affiliate and distributor offices strategically located in key markets California, Florida, Auckland NZ, and Scotland, Eco-Shift Power Corp. is a contract manufacturer of advanced, high-efficiency lighting products and components designed for state-of-the-art energy management systems and cloud-based software platforms. It has strong relationships with a growing worldwide customer base composed primarily of major OEM/ODM lighting designers and distributors. Please visit us at www.eco-shiftpower.com and www.sunindustriesinc.com.
Forward-Looking Statements
This news release contains "forward-looking statements." Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond Eco-Shift's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) the highly competitive nature of lighting industry sales and distribution, (ii) development and protection of our key OEM/ODM and distribution partnerships, (iii) unexpected industry technological development. More detailed information about Eco-Shift and the risk factors that may affect the realization of forward looking statements is set forth in our filings with the Securities and Exchange Commission (SEC). Investors are urged to read these documents free of charge on the SEC's web site at www.sec.gov. Eco-Shift assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise
Contact:
Company
sales@eco-shiftpower.com
contact@eco-shiftpower.com
+1(844) 779-7900 (toll free)
Eco-Shift Power Corp.
53 Speedvale Avenue
Guelph, ON N1H 1J6
Canada