Newsletter Watch: Altair Technologies, Inc.
In this week’s newsletter watch, we follow a nanotechnology expert on his coverage of Altair Nanotechnologies, Inc. (Nasdaq: ALTI).
Josh Wolfe is a leading authority on emerging technologies, with a noted expertise in nanotechnogy. He is the co-founder and managing partner of Lux Capital, a prestigious group that was chosen by PowerShares to help develop the PowerShares Lux Nanotech Portfolio (ASE: PXN), an exchange-traded fund.
In the latest issue of his newsletter, The Forbes/Wolfe Emerging Tech Report, the advisor reviews PXN's largest holding, Altair Nanotechnologies, a leading player in the development of nano-enabled batteries for use in such areas as the electric car industry.
Wolfe says that electric cars are back on the industry radar and they're looking more promising than ever, but what has changed to make them potentially successful now?
“First, there's the ever-growing economic incentive driven by the steadily rising price of crude oil, now over $90 per barrel,” the advisor says. “Second, and more importantly, is the ever-improving technology. And the latest and greatest innovations in electric-powered vehicles are coming from, you guessed it, nanotech.”
According to Wolfe, if the electric car industry has been stalling over the years, it's primarily because of batteries. Either they're not efficient enough, not light enough, not cost-effective enough or they literally explode from time to time, Wolfe says. Nanotech companies, though, are starting to change all that by developing next-generation batteries, he says, to finally get electric cars on the road.
“Today, lithium-ion batteries, like those used in cell phones and laptops, are being hailed as the new state of the art for electric cars, requiring less space and lasting longer while providing a more powerful punch,” he says. "But even lithium-ion batteries have their drawbacks: the graphite used on the anode (the battery's negative electrodes) can become thermally unstable, while the cobalt used on the cathode (the battery's positive electrode) is expensive.”
Wolfe says nanotechnology has the means to improve the electrodes and a leader in the sector is Nevada-based Altair, with a market cap of $292 million. Its breakthrough technology is its replacement of graphite anodes in standard lithium-ion batteries with nanoparticles of lithium titanate, he says.
"The lithium titanate nanoparticles greatly increase the surface area of the anode-up to 100 square meters per gram. More surface area means more room for current to flow. All of this translates into more power, faster recharge, and longer lifespan-up to 15 years,” he says."Altair's batteries can function in a vast range of temperatures, from -30 degrees Celsius up to 240 degrees Celsius—that's 100 degrees hotter than the temperature at which graphite-based batteries tend to burst into flames.”
And the icing on the cake, according to Wolfe, is Altair's batteries can be recharged in less than 10 minutes.The success of Altair's nano-enabled batteries, he says, has not gone unnoticed by the electric car industry.
“Calif.-based Phoenix Motorcars is powering its electric sport utility trucks and SUVs with Altair's batteries, and the vehicles are scheduled to hit the streets early next year,” he says. "There have been a number of delays, but Phoenix has estimated a 500-vehicle sales production for 2008 and an increase to 6,000 the following year. Phoenix estimates a $10 billion annual market for fleet vehicles in California alone.”
Wolf says Altair’s second-quarter results showed a near tripling of revenues to $3.07 million from $1.06 million in Q2 2006. Net loss was $5.43 million (or $0.08 per share), compared to a net loss of $3.79 million (or $0.06 per share), in the same quarter last year.
"As of June 30, Altair's balance sheet totaled $20.85 million. At the end of the second quarter, the company had sold more than $2.35 million in batteries for use in Phoenix's sport utility trucks,” he says. “It also entered into some strategic partnerships, for instance with global power provider AES Corporation to help the latter 'more efficiently and effectively manage power and energy demands on its electrical grids.’ ”
Wolfe says replacing today's cars with electric cars would significantly reduce our contribution to global climate change and that electric cars could wean us off of foreign oil.
“Electric, unlike alternative fuels such as hydrogen and ethanol, is a technology that's ready to go. With nanotech onboard, electric vehicles should be up and running in no time," Wolfe says.
Shares of Altair Nanotechnologies (ALTI) closed at $4.14 on Thursday. Over the last 52 weeks, shares of the company have ranged between $2.48 and $5.45.
Each day, Steven Halpern's website, TheStockAdvisors.com, features the latest market commentary and favorite stock picks of the nation's leading financial newsletter advisors. Visit: http://www.thestockadvisors.com/ccount/click.php?id=1546
About the Author
As a newsletter editor and financial journalist, Steven Halpern has covered the investment newsletter industry for 25 years.
Read More
(click a star)
Enter comment: