DESC Trade Update and new article ==> with the Q4 set for release after the bell tomorrow (and with the conf call set for Wed morning instead of tomorrow night), I decided to follow my strong instincts (see prior posts over the last week or so) and actually purchased a nice new chunk today at around ~$9.60 (a price which is ~ $7.00 more than I paid a looong time ago for the same shares...note to self: in the really old days, I probably would have purchased calls...so, since I am getting older and clearly more conservative, if I am dead wrong on this and, if you look closely at last year's trades - almost everytime I played an earnings play - it did not turn out well for me and thus the odds are clearly against me but...at least, here, worst case is that I can sell the shares back at a partial loss istead of a total loss - but I feel strongly that the risk factor is heavily in my favor, see the Kelly Formula from W. Poundstone's Fortune's Formula)
Here's the new article. As you can see, it is from our ol' buddy Jim Cramer from the March 13th issue of New York Magazine sub-titled "Solar-power and other alternative-energy stocks suddenly appear to have a bright future."
Here's the link to the full article: newyorkmetro.com
...Windmill power, long about as rational as Don Quixote, has, at last, become not only viable but also profitable, as one look at the General Electric Website—recently fronted with windmills—attests. But buying GE for windmills is like buying it for dishwashers; forget it—wind isn’t a big enough business to drive GE. Instead, there’s Distributed Energy Systems. Here’s another company with a mosaic of energy alternatives, the fastest growing of which is wind. Distributed also has its bases covered with solar, biogas, and hydrogen businesses. It’s the hydrogen technology that fascinates me. Most alt-energy companies haven’t made revolutionary leaps, but Distributed can put a machine on-site that can split water into hydrogen and oxygen, then make power out of the hydrogen through fuel cells. That makes Distributed a reliable backup plan for companies that fear Katrina-like grid breakdowns. The company won’t make money until next year, but it sells for less than $10, so you aren’t paying up for its lack of profits.
Responding To Message #194 from Rutgers at 3/4/2006 12:39:45 PM
DESC Update ==> Alternative-Energy Stocks Shine As High Oil Costs Here To Stay
investors.com
Distributed Energy Systems (DESC) makes hydrogen generators and power systems for oil rigs and other remote sites that need on-site power but can't rely on the electric grid.
"That's an example of a market that is thriving today," said Tanous. Tanous is managing director at Merriman Curhan Ford & Co., a San Francisco-based institutional research and investment banking firm.
Let's see how this plays out this week - I gotta strong feeling that the CEO has been sitting on news. I think a move to $12 may happen this week. Stay tuned.
Responding To Message #189 from Rutgers at 3/2/2006 4:31:19 PM
DESC Update: stock looks strong as we head into next week's conference call. One interesting point is that they previously mentioned expecting to have the conf call this week. Then it was moved to next week - where the release will be Tuesday night, but the call will not be until Wed mid-morning. It sure seems to me that they want to give the Street as much time as possible to digest the news before the new CEO chats with them. If they d/n have great news, then I d/n understand why they would time it like that...
With oil still over $60, gotta believe that demand for A/E is still white-hot and should continue as we head into the warmer weather. |
