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.