humberto : ZBB Energy Corp. may be the best trading opportuni
It may not be as prolific as FuelCell Energy Inc. (NASDAQ:FCEL) or Ballard Power Systems Inc. (NASDAQ:BLDP), and it's certainly not as bag as the market caps boasted by BLDP and FCEL. But, as they say, good things come in small packages. That's what ZBB Energy Corporation (NYSEMKT:ZBB) is right now - a small company that offers would-be investors very good odds of upside, thanks to the shape of the chart ZBB has made today.
For those not familiar, ZBB Energy Corporation makes power storage solutions - batteries - for a variety of customers, ranging from residential customers who need a backup system for their solar or wind power system to utility companies needing smart-grid solutions and equipment. Although Ballard Power Systems and FuelCell Energy don't do quite the same thing, all the companies are comparable, and the market is mostly right to group FCEL, BLDP, and ZBB together, along with a few other names in the business....
... and although business was promising for ZBB Energy all the way through fiscal 2013 (ending on 6/30/13), the last three quarters have been pretty tough on the sales front. Investors, spooked by the prospects of an implosion, understandably let ZBB shares from a high of $2.41 in April of last year to November's low of $0.40. As veteran investors know all too well, though, nothing lasts forever, including slumps. And, given what the chart of ZBB Energy is saying now, business is about to improve again. In fact, the chart may well be the most important part of the story now.
It (the chart) speaks for itself. ZBB Energy Corporation has been working on it for a while, slowly cranking out higher highs and higher lows since the pivot in late-November. The stock even popped above the key 200-day moving average line late last week, offering the best glimmer of hope we'd seen in months. The very next day, though, the stock pulled back under that line, deflating those hopes. Monday - yesterday - the bearish gap and lower close, and remaining hope was likely wiped away. As it turns out, anybody who gave up hope recently gave up too soon. Today's session has pushed ZBB back above the 200-day moving average line, and then some, on enormous volume. From here the stock has little to stand in its way, and it's clearly back in a bullish mode. Don't overthink the hint - just interpret it at face value, and get bullish on it. There's a ton of room to recover here, and the company itself has a ton of opportunity in front of it to re-grow its sales.
With all of that being said, savvy investors will likely already know that a big part of the reason ZBB Energy Corporation shares as well as Ballard Power Systems and FuelCell Energy shares are up so firmly today on the heels of not one but two big contracts the alternative energy/electricity industry was awarded today. Neither was given to ZBB, but the two deals further legitimatize what ZBB makes and sells. It's not a bad "connect the dots" from the market either. ZBB can certainly hold its own against its much bigger brothers in the group.