SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : ECCC..Is this a boom waiting to happen?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: RobbRacer who wrote (112)7/27/1999 3:15:00 PM
From: Q.  Read Replies (2) of 215
 
My take on this: I read the stockdetective article, then looked at the co. website and news articles.

I am very skeptical about the claims made for the product. So far as I can guess from the product description on the web page, it looks like a power line conditioner and regulator, with a programmable timer. If so, there's nothing all that special about it. I doubt that the product can have a measurable impact on electrical consumption with no loss of light intensity. I'm sure it can reduce the line voltage to a desired level using its transformers, but that will reduce the lamp brightness.

Even if the product is efficacious, what is their moat? None that I can identify. I haven't noticed any claims of patents. I do note that their claim that the product has been used 17 years already, so I doubt if it could have any significant remaining patent coverage, if it ever had any.

The deals they are announcing looks unusually complicated and hypish. Consider this one: biz.yahoo.com
Mr. Stump has given Electric City Corp. a deposit of $500,000 as an initial fee and is purchasing ECCC stock in the amount of $2 million dollars. There is a letter of credit in the amount of $3 million to be held by Electric City Corp., which will secure the first year sales of EnergySavers. The contract is a 10-year agreement that is potentially worth over $34 million in the first 5 years.

What does all that mean? Is Mr. Stump (a union electrician) actually putting up $2.5 M cash, or is the co. loaning him that money with the letter of credit? Is this more of a stock deal than anything else? Where does the $34 M figure come from?

I then considered the valuation with a market cap of $330 M. Wow. And on the BB, too.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News