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Friday, June 3, 2011

Stop-Start developments

Fairly frequently I do a search on 'stop-start technology' to gain more insight into the potential size of the market for my Axion (AXPW.ob) investment. (I say investment because I will not actively trade it until it sees a +$200M market capitalization.)  Today's search produced an article from a Lithium Battery blog (the irony does not escape me), where it states the potential size of the global stop-start market is 35M units by 2015.

That was interesting onto itself, as it gives a basis of the market, especially since the data suggest Axion's PbC tech via lead-acid batteries will be the primary beneficiary. But what really got the small little hairs in the back of my ears/neck perky was the statement that Johnson Controls will invest up to $420M on the stop-start effort globally. (I verified this on Johnson Controls web site.)

I usually do not post this type of info right away, and keep it to build a more macro fundamental assessment, but I felt this info was pretty telling.  Think about it...

The data produced to date on stop-start batteries has the PbC tech as the clear winner, that makes the concept of stop-start viable. The market cap of the company that owes this tech is currently around $60M. Yet Johnson Controls will be investing $420M over the next two to three years on stop-start technology.

There is a huge market disconnect here. Either Axion Power will get bought out (since Johnson will spend $420M, I think we just established a low-end acquisition price) or the market will eventually recognize this disconnect.

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