Energy Conversion Devices Ovonics, Inc. (ENER) - Alternative Energy Play Includes Solar and Hydrogen
The newest stock in my portfolio is Energy Conversion Devices (ENER) aka ECD Ovonics. ENER describes itself as the leader in the synthesis of new materials and the development of advanced production technology and innovative products. It has invented, pioneered and developed its proprietary, enabling technologies in the fields of energy and information leading to new products and production processes based on amorphous, disordered and related materials.
"The new reality of higher oil prices continues to bring increased attention and a sense of urgency to the alternative energy sector where ECD Ovonics has been a major international player. This has translated into record sales at United Solar Ovonic and the award of a contract to Cobasys by General Motors' Saturn VUE for Cobasys' advanced Ovonic NiMH battery solutions." Stanford R. Ovshinsky; President, Chief Scientist and Technologist of ECD Ovonics.
The Company's portfolio of alternative energy solutions includes Ovonic thin-film amorphous solar cells, modules, panels and systems for generating solar electric power; Ovonic NiMH batteries; Ovonic hydride storage materials capable of storing hydrogen in the solid state for use as a feedstock for fuel cells or internal combustion engines or as an enhancement or replacement for any type of hydrocarbon fuel; and Ovonic fuel cell technology. ECD Ovonics' proprietary advanced information technologies include Ovonic phase-change electrical memory, Ovonic phase-change optical memory and the Ovonic Threshold Switch. ECD Ovonics designs and builds manufacturing machinery that incorporates its proprietary production processes, maintains ongoing research and development programs to continually improve its products and develops new applications for its technologies.
What first attracted me to this company was two things. First, this is a very hot sector that is seeing a lot of institutional money flow and will only continue to see this for as long as high oil prices continue to hold the markets attention. The second thing that attracted me to the stock is the pattern.
A classic cup and handle pattern here. I will elaborate on the cup and handle pattern more in the our Chart Pattern Recognition Series soon as it is my favorite pattern to trade. Don't get me wrong, this is not a "picture perfect cup and handle" but it is close. I personally would have liked to have seen the base extend out about another two months and a right side cup lip that was higher then the left side cup lip. None the less, the pattern seems to be playing out as the stock has reacted positively to its earnings announcement lately and got the significant volume needed to break out from its handle and continue on with the long term up trend already in place.
As you can see by the above diagram, the companies core business is in a very attractive area with much room to expand. Take a moment to visit their website if you would like to learn more details on the core business including their most current energy solutions (hydrogen and solar). I have owned the stock for a while now and look forward to its continued success.