Is Ocean Power Tech Finished Making New Lows?

Ocean Power Technologies, Inc. (OPTT) engages in the development and commercialization of proprietary systems that generate electricity by harnessing the renewable energy of ocean waves primarily in North America, Europe, and Australia.  I researched this company several months ago and, after noticing it bounce from it’s LIFETIME low, wondered if it’s finally cheap enough to consider.  But first, check out this short video that details the unique way this company is able to generate energy from waves.

Pretty fascinating concept, isn’t it?  And although the company has been struggling to turn a profit there is little worry of bankruptcy thanks to a steady stream of federal alternative energy grants.  Also, OPTT recently announced that their full-year revenue for the year ended April 30 rose 31 percent to $6.7 million from $5.1 million the previous year.

In addition, a couple of weeks ago the company also revealed that their new generation utility-scale PowerBuoy® device, the PB150, has delivered better-than-expected initial results from tests being conducted off the northeast coast of Scotland.  Wave conditions encountered have included storm waves, and electrical power generated by the PB150 has included peaks of over 400 kilowatts.  To learn more about their new buoy check out the following link.

But before I suggest buying in let’s take a look at the SwamiChart.  As you can easily tell, around July 11th we would have seen an emerging green “buy” signal from the SwamiPredict indicator.  That said, the MarketMode indicator has been signaling a downtrend for so long that even the newly formed yellow “cycle” signal should only be cautiously noted.  As such, I would not yet recommend getting in at these levels until we begin to see this lower support line hold for a longer amount of time.

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5 Responses to Is Ocean Power Tech Finished Making New Lows?

  1. Keef Wivanef says:

    Nothing is going to stop the trajectory towards zero.
    This company is a scam. They do not have a product that works. Every time another deadline passes and another promise is broken it makes excuses and announces that The PB40, PB150, PB150SP or whatever was just a prototype and the new PB500 or whatever will be along shortly.
    In the meantime the bloated board of geriatrics is busy stuffing all the loot down their trousers.
    The whole thing is a gigantic load of old BOLLOCKS!

  2. mullerman99 says:

    To Keef, everything is a SCAM…….LMFAO!!!!!

    Its like conspiracy theorists…..they dont just tend to believe in 1 conspiracy theory, they believe them all. The more they believe, the less credible they are. This is Keef in a nut(ty)shell.

  3. coursonc says:

    I think Investment in this sector is all about current price, weighted against the always moving backdrop of risk vs reward. Whenever Mr. Market oversells the STOCK (not the industry hope or hype) below fundamental valuation such as cash and assets, then the STOCK is a buy.
    Right now, OPTT has a market cap of $40M, but has over $48M in cash, (as of April30th)with only 10.4M. This does not include any other assets, any patents, or any other value whatsoever. They have basiclly no long term debt obligations, and as an outsource business model, need very little in the way of CapEx, as they make only the ‘smart’ part.
    I may hate Kelloggs sugar frosted cornflakes when they are $4.50 a box and eat Raisin bran, but when the cornflakes are only 50 cents, they just really start tasting better, lol. You can invest in a great company at the wrong time and be a bad investor, or you can invest in a ‘bad’ company at the right time, and be a great trader. Buy value with no hope, or buy hype with no value?

    coursonc

  4. Keef Wivanef says:

    Hello Mulletman and Sailor Boy the two dedicated pumpers of OPTT.
    You can pump all you like guys, the ship is still sinking.
    Conspiracy nut you say?
    I prefer to deal in facts.
    Facts like this company has been promising the PowerPhooey will be commercialised real soon for the last 25 years.
    It has never produced any proof of performance – only bullsheet press releases.
    For a company that does not have a product ready for sale it sure has a lot of highly paid old farts on the board of directors..
    That’s where all the money went….into the corporate trough….oink oink.

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