A look at EV's from an investor point of view. Enjoy,
Jamie >The Investment U e-Letter: Issue #960 >Friday, March 20, 2009 > >Automakers: Between "Barack" and a Hard Place? >by David Fessler, Advisory Panelist >http://www.investmentu.com/resources/david-fessler.html > >In this issue: > >- "Vehicle-to-Grid" concepts > >- Lithium Battery technology > >- Two Producers Cashing in > > >---------------Sponsored Link----------- > >How Mayor LaGuardia's 1937 Government Act Could Make You Rich > >In Depression-era New York City, Mayor LaGuardia enacted a little-known >bill to stimulate the local economy. And it worked... making millionaires out >of a small group of average New Yorkers. > >Most people know nothing about it, but this bill still exists today. And it's >still making people rich. Like resident Arnie Tate, who pulls in an additional >$36,500 each year thanks to this bill...Or Della Goodman who has amassed >a small fortune worth over $500,000. > >The best part? There's a simple yet overlooked way you can start making >money off of this same government act. You don't even need to live in New >York. To find out more, CLICK HERE. > >http://www.oxfonline.com/OXF/NYcurrency0309.html?pub=OXF&code=EOXFK326 > >----------------------------------------------- > > >Dear Investment U Reader, > >During the last few years of the Bush administration, the EPA was directed >to ignore California's pleas to grant it a waiver of the Clean Air Act. > >Why? The grant would effectively have permitted California to enforce >stricter emission rules its legislature had enacted a number of years before. > >The EPA dragged its feet because as many as 16 other states were >considering legislation modeled after California's - with one notable >difference: emission rules even more stringent than California's. > >The carmakers lobbied Bush administration officials to oppose California's >request. And it's not hard to understand why: They're struggling just to stay >in business. > >But now, car manufacturers are between Barack and a hard place, as the >President told the EPA to "reconsider" its Bush-era denial. If it does, >carmakers could find themselves having to make cars that get 43 mpg by >2016. > >Not that that's a bad thing - but it's far more aggressive than the current >goal >of 35 mpg by 2020. The problem is that the new requirement would nearly >double today's fleet-wide average of 25 mpg. > >A Nationwide Energy Storage Battery > >All this has had the carmaker's scrambling to get into the Plug-In Electric >Vehicle (PHEV) business. Most already have an active PHEV development >program underway, with GM being the closest to production with its Chevy >Volt. > >Unfortunately, GM is also teetering on the edge of bankruptcy. > >Necessity is the mother of invention, and we're seeing that in spades with >PHEV development. One of the more intriguing schemes is the "Vehicle-to- >Grid" (V2G) concept, and it's been strongly endorsed by the head of the >Federal Energy Regulatory Commission (FERC). > >It works like this: When your V2G car is plugged in to recharge its batteries, >the utility regulates the rate at which it is charged. More importantly, it >can >reverse the flow and use the V2G's battery pack as a power source during >peak use periods on the grid. > >Similar to the way cloud computing works - where many PCs are combined >to create a huge supercomputer - all the V2G vehicles taken as a whole >would equate to a giant, nationwide power storage battery. > >In return, the vehicle's owner would receive a credit towards his or her >electric bill. It's been estimated that - utilizing this concept - the entire >premium cost for owning a V2G vehicle could be recouped in as little as >three years. > >The benefits go way beyond recouping the added expense of owning an >electric car, however. By reducing our demand for oil and gas, it would >make the process of weaning ourselves off of fossil fuels much less painful. > >Greenhouse gases would significantly decrease, an impact that would be >most notable in densely populated urban areas. The additional revenue that >the power companies would reap from PHEV charging could finance the >additional solar, wind or geothermal power installations necessary to >provide the additional charging power. > >It also solves one of the biggest problems with solar and wind power: That >they can't be used as baseload supplies. This giant nationwide, distributed >storage system would allow utilities everywhere to store power from solar >and wind sources and redistribute it whenever it's needed. > >For the moment, neither GM nor Toyota - the two leading PHEV contenders >- have announced any plans to produce this type of vehicle. > >Clearly what's needed is legislative regulation or an incentive (or both) from >the FERC that will coax the utility companies into embracing the V2G >concept. This will create the need for the vehicles, and the incentive for car >companies to build them. > >Everything Hinges on a Good Battery Pack > >The only fly in the ointment - and regular readers have heard me say this >before (http://www.investmentu.com/IUEL/2009/February/plug-in-hybrid- >electric-vehicles.html) - is an improvement in battery technology. > >Right now, the most promising technology that seems like it can provide the >power densities required for the 100 to 200 mile target commuting range is >Lithium-Ion. > >And those few companies in the lithium battery business are destined to be >the big winners, as the technological challenges are met. So who's in the >battery business? > >EnerSys (Nasdaq: ENS) is one of the largest manufacturers, marketers and >distributors of industrial batteries. From submarines to spaceships - and >everything in between - EnerSys has a battery technology to fit the >application. It also makes the charging and power equipment as well. > >Last fall, the company launched its EcoSafe line of batteries designed for >renewable energy storage applications. Targeted towards the wind and solar >energy generation markets, this product line should see significant growth >under President Obama's EPA initiatives. > >Of more interest to us, EnerSys is working with a number of niche players to >develop a lithium-ion line of batteries specifically targeted to the PHEV >transportation market. > >Where Will All the Lithium Come From? > >The short answer is Bolivia and Chile, and Sociedad de Chile (NYSE: >SQM) - based in Santiago, Chile - is a world leader in the production of >lithium carbonate and a number of other specialty chemicals. > >Right now, the world's demand for lithium is growing at roughly 7% >annually. SQM leads the world in lithium production, too, with over 30% >market share. > >Lithium is used in greases, glass and portable power tool batteries, but its >biggest future growth prospects are large, lithium-ion batteries for hybrid >electric vehicles. New HEV battery demand is expected to ramp up sharply >in the latter half of 2009, and even more in 2010. > >And SQM is getting ready to meet this increasing demand: Its three-year >capital expenditures of $1 billion means an across-the-board capacity >increase of 25% to 30% for all of its products by the end of 2010. > >Changing 100 Year-Old Perceptions > >There's an old rub that goes something like this: "Science only progresses >with the death of each scientist." The idea is that sometimes it takes the >passing of a generation in order for fresh ideas and discoveries to rise to >the >top of the heap. > >Let's hope - at least in this case - it doesn't take that long for PHEVs. We >don't have that much time to waste. > >Next week, I'll be speaking at the 2009 Investment U Conference at the >beautiful Vinoy Resort in St. Petersburg, Florida. Our regular format will >take a week off and instead you'll be getting daily reports from Scott Brown. >I look forward to seeing many of you there. > >Good investing, > >David Fessler > >---------------Sponsored Link----------- > >Florida Resident Shep Greene Collects $210,000" > >69 year-old retiree Shep Greene was skeptical when he first heard about >collecting "unclaimed inheritance money." > >But two months after researching the situation further, Shep received a >lump-sum check for $210,000. > >Get the full details now on claiming your share. > >http://www.oxfonline.com/APO/APOUIM0209.html?pub=APO&code=MAPOK306 > >----------------------------------------------- > > >Today's Investment U Crib Sheet > >Recently we've been looking at a number of options and alternatives in the >"green" energy sector. And new auto technologies are on the forefront of >"hot topics" in this field. The debate over cost effectiveness and >environmental impact has been clashing with the scientific hurdles and >limits of our current technologies. > >In fact, our discussion boards over Plug-in Hybrid Electric Vehicles: The >Only Roadblock to PHEVs >(http://www.investmentu.com/IUEL/2009/February/plug-in-hybrid-electric- >vehicles.html) and the follow up article Is General Motors the Buy of the >Decade? PHEVs Part Two >(http://www.investmentu.com/IUEL/2009/February/general-motors.html) >ranged from supporting, to disgust over a number of the current options and >their potential. > >It's a decision that you'll have to make for yourself. But regardless of which >side you fall on, we all can agree that it's an area we need to keep an eye >on. >Whatever technology and solution that emerges will have the potential to >change the way we live around the world. > >With new solutions and technologies, many of the initial investors are >rewarded handsomely - Think Microsoft, Google and Wal-Mart. Ultimately, >we don't have a crystal ball to know exactly what will happen, and that's >why we pay attention to all of the alternatives. > >But just because we keep an eye towards the future, doesn't mean that we >are ignoring the profitable energy technologies currently creating vast sums >of wealth. In fact Dave Fessler just released some of his latest findings on >the "buried treasure" of today's energy. > >To get all of his latest research, go here. > >http://www.oxfonline.com/OXF/Treasure0309.html?pub=OXF&code=EOXFK328 > > >Related Articles: > >The Best Way to Play Oil's Imminent Rebound >http://www.investmentu.com/IUEL/2009/February/investing-in-crude-oil.html > >Why You Can't Ignore "Green" Investing >http://www.investmentu.com/IUEL/2009/March/alternative-energy.html > >The Cure For Our Economy >http://www.investmentu.com/IUEL/2009/March/energy-and-infrastructure.html > > > >Premium Content: > >"Pay Dirt" for 293% Gains... in 18 Months >http://www.oxfonline.com/OXF/Treasure0309.html?pub=OXF&code=EOXFK317 > > >Recommended Resources > >The Commodities Supercycle >Five Ways To Profit From the Base and Precious Metals >http://www.oxfonline.com/Supercycle/supercycle1108-iuprromo.html?pub=300SMINE&code=E3MNJB02 > >The Fast-Track Investor's Guide > >A Lifetime of Profits in Stocks, Bonds, Real Estate and Precious Metal >https://www.web-purchases.com/300SIUGD/E3GDJ603/awasstyleorderform.html > > >www.investmentu.com > > >Contributing Editors > >Alexander Green: Chairman > >Dr. Mark Skousen: Advisory Panelist > >Louis Basenese: Advisory Panelist > >David Fessler: Advisory Panelist > >Dr. Scott Brown: Advisory Panelist > > >Executive Committee > >Julia C. Guth: Founder > >Alexander Wissel: Editor in Chief > >Danielle O'Dell: Director of E-Commerce > >Erick Hienz: E-Commerce Manager > >Jonathan Kissane: Chief Web Specialist > > >*Investment U*: You are receiving this e-mail as a part of your >*free* subscription to *The Investment U E-Letter* . Your free >subscription began on Tuesday, January 30, 2007. If you have not already done >so, please *click here >to confirm your subscription. This will help us ensure you get every >*Investment U E-letter* without interruption. > >Remove your email from this list: > >Unsubscribe: > >http://www.youreletters.com/u?id=16336071Y&o=&u=http://www.investmentu.com/&l=investmentu > >To cancel by mail or for any other subscription issues, write us >at: > >Investment U >Attn: Member Services >105 West Monument Street >Baltimore, MD 21201 > >(c) 2009 Investment U All Rights Reserved >Investment U · 105 West Monument Street · Baltimore, MD 21201 >North America: 1 800 992 0205 ; Fax: 1 410 223 2650 >International: +1 410 223 2643 ; Fax: +1 410 223 2650 >E-mail: [email protected] >Website: http://www.investmentu.com > >Nothing in this e-mail should be considered personalized >investmentadvice. Although our employees may answer your general >customerservice questions, they are not licensed under securities laws >to address your particular investment situation. No communication by >our employees to you should be deemed as personalized investment >advice. > _______________________________________________ Florida EAA mailing list [email protected] http://www.floridaeaa.org
