Solar Penny Stock: Is Kender Solar (KNDR) a good investment?
Today's Financial News - Posted September 22, 2009
When Traders Daily — our German colleagues — published last week’s TFN call for reader picks, several TD members responded. On suggestion was Kender Solar (PINKS:KNDR)
by J. Christoph Amberger
Baltimore, MD — TFN: “Let me send you a penny stok pick,” wrote Traders Daily reader W.E. to us: Kender Solar (PINKS:KNDR)
“Kender Energy rose 10% with a volume of 292,002 last quarter. It’s a development-stage company, active in the solar energy industry. Their prototype solar cells are currently being developed further into a larger-scale solar energy system.
“The unique aspect of Kender solar cell technology is that they effect heat exchange between solar light and air via a closed gas circuit (usually helium).
“The exchange initiates the flow of helium within the closed circuit, which in turn powers a turbine that produces electricity via a 100% clean and renewable process. The systems main advantage is that it is efficient, cheap to produce, and modular. The company is based in Geneva, Switzerland. (www.kendersolar.com)
“I am watching this tock because it doesn’t strike me as ‘clean’…”
The story reminded me of various alternative-energy companies I investigated in the past. I remember a marine power generator that leveraged the temperature differential between layers of ocean water… or co-generation systems that could convert any element that moved or showed temperature differentials into energy.
(My youthful optimism in predicting their implementation “Within the next five years” turned out to be… well, youthful.)
That’s why I asked TFN guru Andrew Snyder for hi input. Here’s what he said:
“Kender Energy is a speculative company with an interesting technology. The company plans to generate electricity from the same type of simple phsyics that keeps your refrigerator cool. But instead of using freon as a refrigerent, Kender plans to use helium. If it works on a large scale, it could be a major breakthrough.
“Unfortunately, there is no way for investors to know if the technology will actually produce efficient, cheap electricity on a large-scale basis. Buy the stock and you are buying the company’s word that it will work. You are not buying a reliable revenue stream.
“This risk, of course, is not only to be expected from a development-stage company… but also provides the upside potential for possible meteoric rises in share price that makes a pennystock like this a great speculative position.
“Shares have been extremely volatile over the past six months, ranging from highs of $1.50 to lows just north of a dime per share. At current levels of $0.30, shares are in moderate territory.
“Investors need to be aware that this is an extremely speculative investment. Cash flow will be a major obstacle as Kender works towards its ultimate mission, an economically viable ‘Kender Engine.’
“Look for shares to spike on random ‘good news’ events like distribution agreements. But be aware the markets will only tolerate being strung along for so long. If the company does not get its technology on the market soon, the general trend will be negative. My overall opinion on this pick is bearish. The solar industry is overbought and overhyped.”
Next Article: Detroit update: Finally some good news?
Be the first to leave a reply.
Your comments are welcome
Follow TFN via RSS or Twitter |
 |
 |
 |
Advertisement
Latest Headlines
- The Big Picture for Sinobiopharma, Inc. (SNBP)
- Beazer Homes USA, Inc. (BZH) and Hovnanian Enterprises, Inc. (HOV) up despite horrid housing news
- The FDA catalyst: 2010 moves in MannKind (MNKD), Roche Holding (RHHBY), Acorda Therapeutics (ACOR) show it still works!
- Steepest drop since Feb. 2009: Here we go again!
- Is the silver run over? Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Alto Group (ALTO), Hecla Mining (HL), Endeavour Silver (EXK) close down