May 3, 2006
SpeculatingStocks.com Stock Pick: Quantum Fuel Systems Technologies, Inc. (QTWW)
Stock Price: $4.56 (long-term strong buy)
Quantum Fuel Systems Technologies, Inc. is involved in powertrain engineering, systems integration, and manufacturing of packaged fuel systems and accessories for specialty vehicles and applications including fuel cells, hybrids, alternative fuels and hydrogen refueling. The company also designs and manufactures hybrid and fuel cell vehicles.
This company has hydrogen storage tanks that can be used in fuel-cell powered cars to keep them moving for about 300 miles. Their hydrogen storage systems can also be deployed into military equipment as well as GM and Toyota cars and trucks.
It is clear that lithium energy is at the forefront of the alternative energy sector. On April 3rd, QTWW acquired a 19.9 percent stake in a lithium battery developer known as Advanced Lithium Power Inc. QTWW and this company are working together to develop lithium battery packs for use in hybrid electric vehicles.
For the most recent quarter, QTWW reported total revenue of $36.0 million compared to $5.4 million during the same period last year. QTWW is losing money and will continue to lose money over the next year or two, but the promise of this company's technology is just too strong for investors to stay away from QTWW.
QTWW reported revenue of $146.5 million for the most recent nine-month period of fiscal 2006. Most companies in QTWW's space aren't generating such significant revenue.
SpeculatingStocks.com Target Price: We expect QTWW to reach $12.00 within the next 6 - 12 months.