HEV is reliant on the solar industry for most of its mojo, and that's no great industry right now. Individuals don't have the money to install solar, which is an upfront cash cost in the midst of falling natural gas and oil prices. Utilities aren't in a great position to invest due to difficult borrowing market. Governments? Well, let's just say they might soon be in the worst position of all. They are running out of time and printed money to support a relatively small industry such as solar as compared to the important and dying financial sector which requires plenty of capital-- at least in the government's eyes anyway. Meanwhile, the battery business is still pretty much a glint in daddy's eye. Car makers with eyes on top-notch electric vehicles are still struggling with problems Thomas Edison outlined 100 years ago concerning limited battery endurance, explosions, and sheer weight. Ener1 is just one of many many minds trying to tackle the battery situation, so the chances aren't great they emerge the ultimate winner. In the next stock downdraft, ENER may prove a source of funds. Rather pay off your mortgage, or gamble on a nascent unknown battery industry with little revenues. After all Tesla, arguably the most advanced plug-in electric car company on the market, is still using standard lithium-ion cell technology-- and they have everything to lose. Frankly, the most advanced battery technology may come out of Apple, a company who seems to be the only one willing to challenge the lithium-ion cell standardization by using battery plate shape rather then cylindrical cells. This stock should trade more like a lottery ticket. They've burned cash for years, and are always under the gun to raise more. This should have the shares trading at a large discount in a recession/depression. It makes sense the stock runs on index climbs, as it is very volatile, but again, it should prove a source of funds as market indices attack the lows again.
$5.41 (04/23/09)
