Watch List Profile: Composite Technology Corp.

Composite Technology Corp. (OTC BB: CPTC)
Irvine, CA
http://www.compositetechcorp.com/

52-week low / high: $2.22 / $0.76
Shares Outstanding:  215.39 million
Market Capitalization:  $396.32 million

Composite Technology (CPTC) develops, manufactures and markets energy generation and transmission equipment (and consulting services) through two primary subsidiaries: CTC Cable and DeWind equipment. CTC Cable produces composite “rod” for use in the company’s aluminum conductor composite core (ACCC) transmission line. CPTC also manufactures composite power structures and wind generation turbines. The company’s primary markets are the United States, Europe and China.

Aluminum and carbon core cables offer distinct advantages over steel core transmission cables, including that they are of lighter weight, reduce “line sag” in hotter climates allow greater distance between towers and provide nearly double the power flow. The wind turbine product, offered through DeWind (a recent acquisition), offers better grid compatibility and requires less maintenance.

Composite Technology is experiencing tremendous growth thanks to the advantages of the DeWind turbine and large infrastructure investments in ACCC, especially in China. In late August, the company announced orders for 373 miles of ACCC for China alone.

Revenues for 2006 were up nine fold from $1 million in 2005 to just over $10 million. The company is on track to quadruple revenues again in 2007. Analysts estimate 2007 revenues to be just over $40 million and 2008 revenues above $100 million,  based on market acceptance and product demand.

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