New York - (Accesswire - December 3, 2013) - Acceleron Equity Research, a stock market research firm focused on the small cap and micro cap sectors, announced today that is has initiated coverage of Blue Sphere Corp. (OTCQB: BLSP) with a BUY rating and a 12-month target of $0.02/share based upon our valuation model.
The firm's BUY rating is based on the following:
- The Anaerobic Digestion market is poised to grow in commercial areas in the U.S. and Blue Sphere is leading the way with its Charlotte, NC and Johnston, RI facilities.
- Blue Sphere has completed final legal documentation, and will soon receive over $17 million of
construction and long term financing for the Charlotte Project from Caterpillar Financial Services
Corp, a division of Caterpillar Inc. (NYSE: CAT).
- Blue Sphere has completed final legal documentation, and will soon receive $5.5 million in equity
financing and a $1.5 million letter of credit in exchange for 50% ownership of the Charlotte project
from REF Invested Ltd., a green energy focused hedge fund.
- Acceleron believes Blue Sphere’s 50% ownership in the Charlotte project is currently worth over $6
million, based on the new investment, and is expected to be $20 million upon completion based
upon Blue Sphere’s net asset value expectations of the project.
- The Johnston project financing is in negotiations with the same partners and the project is expected
to have a net asset value of about 60% of Charlotte, or about $12 million for Blue Sphere’s 50%
- Blue Sphere will receive over $1 million/year revenue in management fees and free cash flow from
both projects after completion.
- Blue Sphere could receive larger ownership positions in future projects when they have the cash
position to make equity investments along side other equity partners.
About Blue Sphere Corp.
Blue Sphere is an international project integrator, operator and producer of clean energy that has begun project development for multiple organic waste-to-energy projects in the U.S., as well as announcing projects in Israel and Africa utilizing Anaerobic Digestion (AD) technology. Blue Sphere is focused on becoming an industry leader in the U.S. waste-to-energy market. The company plans on fulfilling its goal of developing, owning and operating 60 mega watts of waste-to-energy production in the U.S. and globally in the next 5 years. Blue Sphere, with its financial partners in place, may be able to develop a cookie cutter approach to U.S. based projects and develop several more AD projects in a short amount of time.
Shlomi Palas, CEO of Blue Sphere said the following of his company in a recent interview:
"Blue Sphere develops, builds and operates facilities which use organic waste to produce clean energy. Blue Sphere is positioned in a multibillion dollar arena which is currently serviced by very few and small-scale competitors. The endless supply of waste, which we call "the new oil fields", the new strict Federal and State legislation to divert organic waste from landfills, the already-in-force legislation to substitute fossil energy with renewable energy, the Federal and State incentives for the activities above, all these tectonic movements are the power behind Blue Sphere’s raison d’être. Blue sphere has an objective of building a portfolio of 60 MW high yield assets with an IRR greater than 15% with-in the next 5 years."
Blue Sphere went public through a reverse merger in 2010 to participate in the carbon credit trading markets and to develop clean energy projects globally. The management quickly realized that the carbon credit market would not develop as expected and management shifted focus to renewable energy and organics-toenergy markets. Management did not do much marketing of the company or its stock while they were refocusing their company on the clean energy project business.
Blue Sphere’s primary focus is now on developing organics to energy facilities in the U.S., and they have some clean energy interests in West Africa with partners, as well.
Interested investors may download the complete initiation coverage report at:
Acceleron Equity Research
64 Beaver Street
New York, NY 10004
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