Ultralife Batteries (NASDAQ: ULBI) provides
a range of non-rechargeable and rechargeable batteries, charging systems and communications accessories for use in military, industrial and consumer portable electronics products. The company's non-rechargeable lithium batteries are used to power such diverse devices as radios, emergency radio beacons, search and rescue transponders, portable medical devices and smoke alarms.
Its lithium polymer and lithium ion rechargeable batteries are used in such portable devices as laptop computers and cell phones. The U.S. Department of Defense accounts for about 20 percent of Ultralife's sales. Major commercial customers include General Dynamics (NYSE: GD), General Motors (NYSE: GM) and RadioShack (NYSE: RSH).
The company pleased investors late last month, when it received a $40 million follow-on to a $62 million defense order for communications systems. Management also issued FY08 revenue guidance of at least $230 million, a level well above the Wall Street consensus view. ULBI shares popped on the news and then moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Brokers recommend the shares with two "strong buys," two "buys" and one "hold." Analysts see an 18 percent average annual growth rate through the next five years. The ULBI Sales Growth rate (40.32%) and EPS Growth rate (92.55%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 44 percent of the outstanding shares. Over the past 52 weeks, the stock has traded between $7.98 and $21.76. A stop-loss of $18.25 looks good here. Note that the firm is next expected to report quarterly results in mid-February.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.
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Reader Comments (Page 1 of 1)
1-05-2008 @ 10:11AM
TRUGROUP said...
Lithium Li-ion Battery Technology Innovation & Investment-
+++++++++++++++++++++++++++++++
There are technologies available now that could have a major impact on improving both the performance and safety of lithium cells. Indeed, there is technology available now that would at minimum virtually solve the safety problem. Trouble is most of the current investment in batteries is in the Far East - China and Japan - not the United States. So while the United States is a leader in technological innovation for batteries, the commercialization of these technologies is slow because of the battery industry structure.
Now we have indications early 2008 of a new world oil price / supply crisis providing more evidence that safe batteries of sufficient power and capacity for electric vehicles - HEV and EV - is needed urgently. But existing lithium technology, that is conventional Li-ion cells, is a zero tolerance technology. Without US led innovation hand-in-hand with investment in these batteries we have a significant problem the resolution for which is unclear.
TRU Group Inc - Lithium Consultants
trugroup.com
1-07-2008 @ 7:35AM
USBCELL said...
There are also much more re-usable technology innovations such as USBCELL batteries http://www.usbcell.com that can be re-used hundreds of times, saving money and planet