Hot Tech, Part 1: Investors Should Keep Their Eyes on SKF, Ener1 And Valeo SA
Submitted by EnergyTechStocks.com
With this article, EnergyTechStocks.com begins a weekly, multi-part series on the newest advances in energy technology that look most likely to pay off for investors in the coming carbon-constrained world. Each company mentioned is, in our eyes, worth a closer look, not just because of its new “hot tech,” but also because each company presently flies under Wall Street’s radar screen, so that when its hot tech eventually gets noticed, the company’s stock could see a big pop.
First up: SKF AB (Symbol SKFRY), the Swedish manufacturer of rolling bearings, seals and other basic parts for the automotive, wind and many other industries.
SKF just introduced a new line of bearings for vehicle powertrains that the company says will reduce friction by up to 30% and carbon dioxide emissions by up to 13 grams per mile in a four-wheel drive.
Given that President Obama just mandated big decreases in cars’ CO2 emissions, car manufacturers know they’re going to have to squeeze the CO2 out of every part of a vehicle, including a vehicle’s seemingly insignificant bearings.
SKF’s first quarter earnings were down 69% from a year ago and second quarter results may be equally depressing, the company said in April, though it added that a bottom may be at hand. If so, SKF could just stage a surprising rebound thanks to its new CO2-reducing bearings.
Next up: Ener1 Inc. (Symbol HEV), known to investors as a lithium-ion battery development company that is in line to benefit as plug-in hybrid electric vehicles (PHEVs) start hitting the road over the next two years.
While investors may think they know Ener1’s full potential, the Florida-based company may have an ace up its sleeve in the form of an onboard fuel cell system it is developing for vehicles that would increase the number of miles a car or truck could travel on electricity.
One of the big fears PHEV advocates have is that the first generation of these cars and trucks won’t go far enough on a single charge to satisfy the average motorist. Ener1’s new fuel cell system would store added electricity and deliver it on demand, which could make this product hot tech as every car manufacturer in the world jockeys to sell PHEVs because of government mandates and despite what is expected to be initial consumer resistance. (For more see Battery Developers Ener1, Hitachi, Johnson Controls, Lithium Tech Get New Report Card Grades (Part 2 of 3))
Next up: Valeo SA (Symbol VLEEY), the French industrial manufacturer with a product even better at reducing vehicles’ CO2 emissions than SKF’s. Valeo makes “stop-start” systems, which starting next year will be everywhere in Europe and, increasingly, in the U.S. as well. Stop-start technology can reduce a vehicle’s CO2 emissions by up to about 15% by automatically turning the engine off when a car is stopped at, say, a traffic light, and then automatically turning it back on.
Valeo and German giant Robert Bosch Gmbh are the stop-start leaders. It’s hard to see how their products won’t be in demand as global car manufacturers work to meet to Obama’s carbon-reduction mandates. (For more see Bosch And Valeo Both Look Like Winners In Installing Fuel-Saving Stop-Start Tech in Cars)
