By Rick King -
Shares of nanotech development company mPhase got a slight lift from recent news, to include activation of its first multi-cell battery using it’s electro-wetting technique. Past applications were limited to its single-cell application of the technology, and this multi-cell technique appears capable of letting the company scale the technology for more complex applications. To date, the company’s smart nanobattery boasts a 20-year shelf life, and the company continues to move forward with the ideal they can revolutionize the battery industry.
There was also an announcement on November 10th, 2010 about a new product development with a major European automaker (no details beyond the general statement were available as of the time of this article). A prototype for this new automotive product is tentatively expected for 1st Quarter of calendar year 2011. Depending on who the contract is with, this could create a nice boost to the company’s bottom line.
mPhase has been maintaining yearly grant inflow as part of the U.S. Army’s Small Business Technology Transfer (STTR) Grant, which also falls within the Small Business Innovation Research (SBIR) Program. mPhase released its first commercial product this past year, with its mPower Emergency Illuminator, and online sales appeared to a primary driver for revenue and bang for the buck on this product appears yet to be seen. One nice function I don’t think the company capitalized enough was it’s USB charging port, which would essentially provide a USB power source for any electronics device capable of using that port for power in an emergency. With a 20-year shelf life, I would have taken the marketing in a slightly different direction and hit every survival, camping, outdoors supplier with the product as a first priority.
mPhase’s first true commercial product:
This company has advertised for a while that it’s smart nanobattery will be released soon on it’s website, but investors and potential customers have been waiting silently for that page to change. Part of the problem this company faces from investors are the few that find interest are typically speculating at best and taking advantage of the occasional pop-and-drop following any good news.
I remain skeptical this company will move out of the shadows in a substantial way unless this extremely small small business can capitalize on its progress. If you look back through the long-term charts there is an unmistakeable downtrend showing an unshakeable decline in the company’s share valuation. Usually when I see that, I hone in on what is preventing the company from breaking that trend, and in this case it seems the company is excellent on the technical development, but marketing is not where I would like to see it. Where I truly see potential for this company moving forward is with the possibility it draws or garners the attention of one of the larger, mainstay battery companies. Long-term, possibly mid-term, Proctor and Gamble’s (NYSE:PG) Duracell or Energizer (NYSE:ENR) picking up this technology and using their experience to shape its marketability would create enough interest to propel it into the global markets.
This is easily my highest risk investment. I would say that there is some potential, but you should ask yourself how long you are waiting for a return on your investments. Also, even though it is a micro penny stock, you should be prepared to risk your entire investment if you choose to take a go with mPhase. Then again, there is no reward without at least some risk. The question is, what surprises are around the corner, and when will they arrive.
Position: Long XDSL (Very Long)
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never thought I’d see an article on xdsl. I’ve been w/ them for years and years! Somethings seemed questionable w/ the company so I hope these new develops prop them up w/ some credibility.
I started covering XDSL for exactly that reason: There are folks out there that want to know what is going on. We banded together on this site so we could use our collective knowledge to help investors. I’m glad you read/found the article of interest. I’ll make sure I follow up with some more research on mPhase as I can.
Thanks for the timely article Rick, very imformative. I’ve got my lottery ticket on this one, but not holding as tight or as much as other securities, that’s for sure. But intrigued by the idea-concept-technology-possibilities, so I’ll keep buying in very small quantites just in case.