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Technology Stocks : ABTG: Ambient Corp (Bulls Board)

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From: fmikehugo3/17/2005 1:28:25 PM
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13:13 New FCC Chairman is proponent of Broadband Power Line Technology; may bring group into spotlight

Lost in the shuffle of yesterday's GM's news, RIMM's run and talk that Viacom may split its company into two parts was President Bush naming Kevin Martin the FCC Chairman. Mr. Martin is a proponent of Broadband Power Line Technology. BPL can be used over existing power lines (something that would put less strain on electrical power grids). If the FCC approves BPL as a new high speed delivery alternative to cable modems and digital service lines, consumers will benefit from increased competition which will ultimately lead to lower monthly rates. Consumers will also benefit from the ability to plug their computers into any electrical socket in their homes/offices simply by purchasing a compatible broadband power line adapter from a retail consumer electronic store. Rural/urban areas that have had difficulty getting broadband access would benefit tremendously by receiving high speed data over their existing power lines. Stocks to watch that may benefit from Mr. Martin heading up the FCC are ConEdison (ED), PPL Corp (PPL), Pepco Holdings (POM), Ameren Corp (AEE), EarthLink (ELNK). The purest plays are Telkonet (TKO 4.20 +0.04) and Ambient Corp (ABTG.OB 0.255 -0.003). Note that Con Edison holds a 26.5% stake in ABTG. Utility companies like ED have a lot to gain if BPL is approved as it will give them a completely new revenue stream... See our Oct 20th write-up on this sector for additional background.
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