NBT Special Report: Powered by Flux: The Secret To The Global Electric Vehicle Revolution
NBT Special Report: Powered by Flux: The Secret To The Global Electric Vehicle Revolution
You all know the �Intel Inside� logo�indicating that an Intel chip is inside your laptop or desktop PC (they are inside Macs too but Apple is too cool to advertise).
Take the Intel inside concept and now think �Powered by FLUX�, because when it comes to the exploding Electric Vehicle (�EV�) industry�the amazing Flux Power battery system is likely to be inside.
In fact, one of the key reasons NBT is so bullish on Flux Power Holdings, Inc. is how its patent pending battery system management technology is the KEY enabling technology that makes electric vehicles ECONOMIC and affordable around the world. Here is our original report for more details.
$8.50 Price Target for FLUX is 4X Upside From Current Price Level
FLUX is sitting on $65 million in blanket purchase orders over the next year 2012-2013 mostly from the EV manufacturers �and a $150 million+ order pipeline in fiscal year 2014. �At 25% margins�vs. 5-8% margins for lead acid battery manufacturers�NBT holds an $8.50 target price for the recently public shares of FLUX.
Investment Thesis: The Way To Make the MOST Profit From A New Wave of Innovative Growth Is to Own the Key Enabling Technology Company.
If you believe in the EV Industry�and NBT is a BIG believer�then owning FLUX is the BEST way to play the rapidly growing secular shift to highly cost efficient EV transport. Just like owning Cirrus Logic...the key enabling tech for iPhones...or Intel during the PC revolution, the investors that make the MOST money are NOT the end product players, but the key enabling technology IP owner.
In the exploding EV growth wave, THAT key intellectual property owner is Flux Power and its intelligent energy storage system technology
The EV Industry Secret: Its Success Is Based on The Breakthrough FLUX Battery System
It is NOT a secret that the ONE thing that has been holding back electric vehicles HAS been the cost of battery systems. Flux�s battery system is 60% LOWER priced than competitors A123 and Valence Batter systems�for EV�s A123 and Valence battery systems are $25,000 vs. Flux�s $11,500 for a 30KWh system or just 40 cents per watt.
Saving $14,000 per VEHICLE is the difference between selling 100,000 EV�s a year versus NOT selling many...FLUX�s affordable battery management systems IS the key enabling technology for the EV industry.
In China, where EV manufacturing and distribution is raging because of low cost lithium batteries, the FLUX system cost advantage allows EV manufactures� to build full function EVs for under $12,500... FLUX expects to have a major JV deal with China�s biggest lithium battery manufacturer completed and announced very soon.
How Does Flux Power Do It?
Flux Power�s patented battery management systems extend the life of lithium batteries up to 5X over other systems�up to 3,000 recharging cycles vs. 600 charges in normal battery systems. Think of batteries like a health system�Flux turns dumb batteries into �smart batteries� that are constantly being monitored and managed for optimal charge and discharge cycles. By managing the entire charge/discharge cycle,� Flux Power systems last up to 5X longer than dumb non-optimized lithium or lead cell batteries�it�s that simple.
The Killer Value Proposition: Flux�s battery management technology provides key power management functionality and easy integration into EVs for 50%+ LESS than the overall cost of the competition�that is the very simple yet powerful value proposition for FLUX to sell to EV manufacturers worldwide.
The EV Revolution is Happening In The United States NOW�and It�s Powered by Flux
The available EV cars, cycles and delivery truck are growing rapidly... here are the currently approved EVs in California.
EV players like Boulder Electric Vehicle, EPIC, Greentech Automotive and Wheego all depend on Flux to make their EV�s work and be affordable. Flux has $65 million in blanket purchase orders from these players and others over the next 12 months.
www.boulderev.com/models.html
www.evepic.com/
Wheego Life Powered By Flux
Flux is providing a 30KWh system to Wheego Automotive for their Life 100% electric commuter vehicle at $11,500 per vehicle. At $22,000 (after Federal and State tax credits) the Life is a 100% street legal, get 115 miles per charge and can recharge with a simple power cord from regular 110 outlet.
The Wheego Life is selling now...because of FLUX�s 30KWh system inside. Here are the specs for the Life.
GreenTech Automotive Sees 10,000 of its Small Electric Vehicles in the coming year.
MyCar from GreenTech Automotive has signed a sales agreement with� Greenabout A/S, a Danish distributor of electric cars, for �thousands� of the two-passenger vehicles, CEO Terry McAuliffe recently stated in the press.
Affordability is a key element of GTA's strategy for product development. With an expected base price of $15,500 BEFORE tax credits, MyCar is considerably less expensive than other all-electric vehicles.
Future models, including the MyCar EV planned for early 2014, will also be competitively priced. GTA's commitment to affordable alternative energy solutions earned the praise of former President Bill Clinton, who attended the unveiling ceremonies for the MyCar July 6th in Mississippi.
"MyCar is just the beginning of GTA's efforts to produce a wide range of environmentally friendly, energy-efficient, affordable vehicles," said Charles Wang, CEO of GreenTech. "Many electric carmakers have tried to force electric vehicle technology into the existing transportation paradigm, which invariably results in vehicles that are environmentally friendly but prohibitively expensive. GreenTech has broken the mold by adopting the revolutionary strategy of creating an affordable electric car that will reshape how Americans think about meeting our daily transportation needs."
MyCar is an ideal solution for corporations, government entities, rental car fleets, and corporate and college campuses in addition to individual transportation use such as commuting and daily errands. MyCar produces zero emissions and provides a range of up to 115 miles. It is can be recharged via a common 110 wall outlet, a 220 wall outlet or a fast charging system with re-charge times ranging between three to twelve hours depending on the charging system used.
China Is Leading EV Charge�Pardon the Pun
According to a new report by Accenture, China could actually be ahead of the US when it comes to the rollout of and deploying disruptive new transport technologies. The authors state that China should win the race in terms of supporting alternative energy and allocation of funds to research and deployment, meaning it should reach its targets faster.
However, the US is more likely to generate breakthrough EV power solutions despite being slower in development according to the report. China�s competitive advantage comes from its domestic supplies of lithium and current battery production capabilities.
We expect to see a major Flux China manufacturing deal VERY soon.
Summary
Think about IF the inventor of the internal combustion engine owned the IP patents to the internal combustion engine...because that is the investment proposition we get with owning FLUX shares.
As the EV industry hits an inflection point of pricing and demand over the next year Flux Power Holdings, Inc. (FLUX) is in the right place with the right enabling technology. The next big thing in transportation IS electric, and Flux is the next big thing in the EV space.
We encourage you to pick up shares AHEAD of the news flow from the various Flux end customers and sales milestone being hit and exceeded. FLUX is the �Intel Inside� of the majority of EVs coming out to the world. Here is our original report for more details.
Tobin Smith
Founder and Chairman
NBT Equities Research
www.nbtequitiesresearch.com
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