Saturday, July 19, 2008

Zenn Motor Valuation of $100/share?

Back in June, an article covering Zenn Motor appeared on several news sites and cited a $6.50/share "speculative buy" price target set by Versant Partners' Massimo Fiore who was also quoted as saying of EEStor, "This is not small potatoes here. If this works, it really changes the transportation sector."  

On Fri July 18, Fiore released a research update in which he presented a way of valuing Zenn's stock at $100/share if all goes well with EEStor, including $29/share based on Zenn's stake in EEStor and $71/share based on Zenn's main lines of business. His analysis included estimated annual revenue of EEStor in 2013 at $12.7Bil or $5.5Bil from transportation, $1.2Bil from charging stations, $3.2Bil from wind farms (Hello T. Boone Pickens), $1.2Bil from Solar PV power, $1Bil from misc load leveling, commercial and military applications. For Zenn operations, Fiore estimates 2013 revenues of $240Mil in low speed vehicles, $500Mil from highway capable vehicles, $1.2Bil from ZENNergy drive trains and $80Mil from retrofit conversions.  Before you start yelling at me and my brevity, get the full report yourself for $30 here

Obviously I had to talk to Massimo Fiore myself and did so this afternoon.  Among other things, Fiore told me "...people ask me 2 questions about Zenn and EEStor, the top two questions. Number one, is this thing going to work? I dont know the answer to that question. Number two, where is this thing going to go?  I can give them an idea or investment thesis of where it could go which is what I've laid out in my note. "   (BTW, he reads this blog --one of his colleagues pointed it out to him). :-)

If you follow EEStor news because you are invested in Zenn Motor, you may want to familiarize yourself with Fiore's work here because the potential for EEStor may  be much higher than he presents.  I'm sure there will be no shortage of comments on this posting. 

And since we're now re-entering the topic of how to invest in EEStor via Zenn Motors, we're going to throw it back to Tom Villars for an update on his own personal theory of Zenn Stock valuation.  Our goal is to post that article tonite.  (no tease intended--he's still editing it now).
By the way, if you think you have an article on any aspect of EEStor that deserves the spotlight, contact me and we can discuss posting it here.  We've got over 1000 people visiting the site/day now.