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Earnings Cheat Sheet: GACR, TSLA, PLUG, BLDP

Thursday, 03 April 2014 08:55 AM

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New York / April 03, 2014 / Market Buzz Report, which provides up to date coverage, commentary and alerts on OTC and NASDAQ Stocks, issues critical stocks analysis for Earnings Cheat Sheet: GACR, TSLA, PLUG, BLDP 

Green Automotive Co (OTCMKTS:GACR) Is a Promising Electric Car Company that is only six years old, almost profitable and is growing at 1000% year over year! Although it is easier for a “smaller company” to grow that fast, GACR is still growing at a faster rate than many other competitors. Green Automotive Co. Is virtually undiscovered and is undervalued on a price to sales ratio. Here is the breakdown: 

Company 

Price-to-Sales (TTM)
Plug Power Inc.
     31
Ballard Power Systems Inc.
      7.8
FuelCell Energy Inc.
      3.1
Westport Innovations  Inc.
      5.4
Capstone Turbine
      5

Green Automotive (GACR)  3.9 

At Plug Powers Inc. current levels the stock is trading at 10x projected revenues, and EPS numbers are negative. Even when companies are growing very fast these lofty valuations raise tremendous red flags, but PLUG is not even growing. 

GACR has been growing at a rapid pace, with Revenues up above 1000% over 2012 and a price to sales of 3.9 compared to PLUG's 31! 

Is GACR a “baby TSLA”? Watch The Fox Business News Report With Comparisons Here:  http://marketbuzzreport.com/gacr/ (Or Copy and paste the URL into your browser)

Tesla Motors Inc. (NASDAQ: TSLA) Has beaten it’s own guidance for the last 4 quarters. If history is any indicator TSLA should be able to beat in its 1st Quarter of 2014. 

Lets take a closer look though just to make sure. In the Fourth Quarter of 2013, Telsa beat Guidance by about 17% which was a larger than average beat for the electric car maker. 

In March Telsa Sold 1,493 Model S Sedans. This is the largest ever reported by any Model in Norway. This report alone is a strong possible foreshadowing that Tesla's First Quarter could shoot the lights out again.

Tesla management have been master's of setting the bar low so they can blow the numbers away and impress shareholders and the First Quarter of 2014 should be no different. 

Can GACR Emerge From TSLA's Shadow?    http://marketbuzzreport.com/gacr/  (Or Copy and paste the URL into your browser)

Plug Power Inc. (NASDAQ: PLUG) 

PLUG Has Never Been Profitable and plays in an unproven sector. The company has also diluted shareholder massively with over $316 million raised through secondary common and preferred issuances. 

Shareholders now after the large move are all dreaming of what the CEO has said about possible contract with a big auto maker which is probably coming but might just be a small test like Walmart is currently doing. PLUG's Revenue target for 2014 is $70 million but even if over an eight year period they quadruple sales and long term gross profits comes in at 32% its current $700 million dollar market cap seems way to hefty. Plus there is always room for disappointment along the way.

 

What if Walmart decides the test didn't go so well and does not order anymore? So many tangibles here We just don't see it happening as managements projection seem a bit dreamy with the company's struggles to grow revenue over the past couple of years and that the entire industry is only expected to grow at a rate of 18.9% over the next five years. 

Something Big would need to happen here like maybe a deal with Tesla. Lets see how this one pans out.

Watch The Full Report on An Electric Car Company Growing at a Rapid Pace: http://marketbuzzreport.com/gacr/ (Or Copy and paste the URL into your browser)

Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) 

BLDP Is Basically the mirror image of PLUG but is much cheaper on a price to sales ratio of only 7.8 compared to PLUG's 31. 

Lets take a glimpse into time here and see if BLDP's earnings could amount to anything substantial for shareholders.  BLDP Has a “Game Changing Technology” but lets get down to the fundamentals here:

Adjusted EBITDA in the fourth quarter was $200,000, a huge improvement from last year’s fourth quarter loss of $3.2 million. For the year, EBITDA improved by 62% to a loss of $8.2 million from a loss of $22.1 million in 2012.

So it seems the company is turning around great, but many investors are not to pleased when taking a look at that $536 million dollar market cap.  

Citron Research said:

Who is behind PLUG, and what do they do? This is simple: Plug Power sells fuel cell-powered forklifts … with fuel cells they acquire from Ballard Power. Nothing fancy here, folks. Same business model since the 2000 crash … Well over a decade as a public company, during which they have lost close to $850 million, while developing no IP or meaningful revenue growth. 

A swing to profitability might just happen but we do not see any amazing growth happening.

One Electric Car Company That’s Numbers Are Improving Year Over Year: http://marketbuzzreport.com/gacr/ (Or Copy and paste the URL into your browser)

The only 2 promising stocks in the electric car niche are TSLA and GACR it appears based off of strictly fundamentals and year to year growth. 

In Las Vegas at The LTC Show GACR was one of the most heavily discussed companies in the entire show. GACR's display of innovative and high quality shuttle and limo buses saw over 450 bus operators visit their stand from the US, Canada, France, and a number of other regions:

During the show, the company took orders for over $1.6 M

The selling “star” was the Patriot, 19 to 23 seat shuttle bus, with 9 buses sold. 3 customers chose the biggest model, the Freedom 45, for its beautiful exterior design and finish. The up-market Limo bus with its fancy interior seduced 2 companies, for a total of 14 sales at the show! 

GACR Is Building Its Empire By Rapidly Acquiring Companies:

On March 4th GACR Announced that it has signed a binding agreement to buy Transhock Ltd., a well established re-manufacturer and distributor of vehicle parts and accessories based in the West Midlands in the UK, the heart of the UK Automotive Industry. The company reported circa $7m+ of Revenues for the year ended 31st March 2013 (to UK GAAP), and was both profitable and cash flow positive. The transaction will be earnings accretive to GAC and was paid for with $1.8m in equity. 

On February 4th GACR signed a binding agreement to buy California and Mexico-based Blackhawk Manufacturing Inc. and its affiliated companies. Blackhawk is one of the foremost manufacturers of specialist composite materials with facilities in Bloomington CA and Tijuana Mexico and is generating sales of circa $5m per annum. 

The privately owned company was founded in 1994 and operates from two production sites it owns: a 10 acre site in California (which GAC will have a binding option to purchase) and a 3 acre site in Mexico (which will be acquired when this agreement closes). The company focuses on the production of custom parts for clients throughout the USA and South America, using open mold (fibreglass) Thermoforming, injected urethane and resin infusion technique. 

Commenting on the agreement, Ian Hobday, CEO of Green Automotive Company said:

“Blackhawk has been supplying our Newport Coachworks business since we started, and we’ve been very impressed with their performance, delivery and customer support. The vertical integration of the Blackhawk business into Green Automotive secures our supply chain, offers new growth opportunities, brings skilled management to the team and provides us with room to expand as our business continues to grow.

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