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Electrovaya Inc T.ELVA

Alternate Symbol(s):  ELVA

Electrovaya Inc. is a Canada-based lithium-ion battery technology and manufacturing company. The Company designs, develops and manufactures lithium-ion batteries and battery systems for energy storage, clean electric transportation, heavy duty electric vehicles and other specialized applications based on its Infinity Battery Technology Platform. The Company is focused on contributing to the prevention of climate change by supplying safe and long-lasting lithium-ion batteries. The Company is also developing next generation solid state battery technology at its Labs division. The Company has two operating sites in Canada and has a 52-acre site with approximately 135,000 square foot manufacturing facility in New York state. Its battery products are used across various applications, including material handling, e-mobility and energy storage.


TSX:ELVA - Post by User

Bullboard Posts
Comment by GerritEtmanson Dec 06, 2015 11:42am
202 Views
Post# 24358996

RE:Was the Toronto Hydro storage system responsible for Q4's

RE:Was the Toronto Hydro storage system responsible for Q4'sDrunk@noon:  It is worth to look deep into the financial results of the last 3 quarters.  From January to March, none of the revenue came from Germany.  From April to June, about $5.5 million came form Germany, and from July through September, it was $9Million.  Problem is, that the overwhelming fraction of these revenues are from one contract, namely the supply of batteries to Daimler's Smart car.  This battery cell volume will be switched to a Korean supplier at the end of October, so you can expect revenue in the current quarter from that source to drop to $3 Million or thereabouts.
They received a contract (press release on September 1, 2015) which will add about $3Million of revenue in the current quarter.  There may be other orders, too small to warrant a press release; a best-case scenario for revenue in the current quarter is therefore about $7Million.  At that level, they will lose money again, so the most recent quarter was a (positive) aberration.
On this and other stock boards, there is speculation that they will get the Smart car contract back.  Any probability for this to happen dropped to zero when they announced that they are not anywhere close to producing NMP-free, which by their own claim is the key to produce at lower cost.  So, for the next two years, their cost structure will remain the same as before the acquisition, which caused them to lose the contract to the Korean competitor.  At the earliest, a return of this business may happen in 2018...
When you dig a bit more in the recent financial reports, you will note that their balance sheet is riddled with liabilities.  For this reason, they will need to tap into additional capital.  My prediction is that this will need to happen before the end of February (2016).  In the past, this has always caused huge stock price drops.
For all these reasons, I am extremely generous when I call this a "speculative investment".  In conversation, I would use less flattering terms...
Bullboard Posts