“The new energy boom that’s predicted to be 15,566% bigger than oil… and it could QUADRUPLE your money in the next 8 to 12 months… ” (Dr. Kent Moors)

By Travis Johnson, Stock Gumshoe, March 28, 2011

Dr. Kent Moors, who teaches political science at Duquesne and is an expert consultant on oil and gas topics, launched a newsletter with one of the many hype-crazy Agora-related publishers last year (Money Map Press, if you’re keeping track, itself a spinoff of Oxford Club if I’m keeping the spaghetti strands in order). In fact, his little part of the Money Map fiefdom is a clinic on building and harvesting a mailing list — he starts with the free Oil & Energy Investor, upgrades folks to the newsletter he’s teasing here today, Energy Advantage, and then, once you’re accustomed to paying for his recommendations he promises even grander profits from his more expensive and exlusive “trading service,” The Energy Inner Circle.

So as they build up that Energy Advantage mailing list, they’re now pitching subscriptions for $50 — “half price” from what the normal hoi polloi would pay, naturally, because you are so special. But just in case you’re curiou about one of those “quadruple your money” opportunities he teases in the ad and don’t really feel like subscribing to another letter at the moment, I thought I’d sniff out a few answers for you.

The ad — you can read it here if you’re so inclined, or listen to the interminable “presentation” — tells us that the best breakthrough ideas will come from companies who can make energy more efficient, improve green energy technologies, etc., everything from switchgrass ethanol to smart grids.

And lest you think that Dr. Moors is out to line his pockets and bolster his retirement in his spare time (and as a former academic, I can tell you that he almost certainly has a lot of spare time for his consulting and newsletter gigs), he spins it this way for us:

“What it is that I know is going to benefit YOU in high profits in this new energy market.

“But there’s also another reason why I want to give this advice directly to you.

“This market, to remain stable… this market, to maximize its profits… needs liquidity coming from thousands of small retail investors.

“Retail investors, who have longer-term prospects – who are looking at the real interest of the market – rather than making short-term profits, as many of the larger hedge funds do.

“With more small retail investors – like YOU – coming into the market, not only do you profit, but the market profits.

“And so, from that standpoint, this service is important… not simply to the investor, but also to the market itself.”

Man, I’m going to have to start using that line, too — not only am I trying to inform individual investors, but my Gumshoe blather is important to the market itself. I don’t even know what that means, but I like the sound of it. Time to print up some business cards

But anyway, here’s the idea teased for you that he says you can “take to the bank right now.”

“It’s around $4 a share – for now – and should QUADRUPLE your money within the next 8 to 12 months…

“By enabling solar power to connect directly to the existing power grid, this could be the most profitable ‘energy bridge’ ever built.

“It’s already in wide and expanding use worldwide for one simple reason: It reduces loss of power (and therefore INCREASES efficiency and REDUCES cost) at every step in the process.

“That allows larger solar complexes to suddenly become extremely profitable….”

OK, that sounds pretty good. I actually have no idea that there was any problem in connecting solar power to the grid, so perhaps I’m learning both about a problem and a solution today. I love a completed circle.

More clues?

“This technology enables giant solar farms (and wind farms, too) to “plug” right into the existing grid and add electricity to the supply.

“Think of it as an extremely sophisticated version of one of those adaptors you attach to 3-prong appliances so you can plug into any 2-hole outlet. Without the adaptor, you can’t even connect. But with the adaptor, everything works perfectly. This single development takes solar energy from the realm of science fiction and transforms it into a catalyst for unimaginable wealth.”

Seriously, has this been a problem? I’ve seen the solar companies teased for years now, and I can’t say this problem has ever gotten much attention — I thought the problem was clouds and darkness, not the method of plugging your panels into the system.

Anyway, some more details to help us narrow down the list of companies?

“Mark this day on your calendar. It’s the moment in history that solar power became the real deal.

“This company’s technology does for electricity generation what the silicon chip did for the personal computing industry – it makes solar energy affordable and brings it to the masses! …

“… I happen to be one of the few people who knows the intimate details about the tiny company that has single-handedly developed the technology that makes that kind of leap possible.”

OK, so that’s not details — but the letters from Dr. Moors have been so boastful in the past that I couldn’t resist including that last sentence. (And yes, I happen to be one of the few people who knows the intimate details of which button to press on the Gumshoe HQ microwave to most efficiently warm a burrito. And I’m not telling.)

There are a few more details for you, though — including info about some customers, which should help the mighty Thinkolator do its work:

“The company supplied inverters for China’s largest solar plant and rooftop projects. They were just installed in two major cities. And that puts it on the short list of companies that will help China meet its 20-GW commitment to solar energy.

“Last year, a combination of 12 of the company’s breakthrough inverters was used in a 1.2-MW solar power station at a water treatment facility in Kent County, Delaware. This is the first example of a seamless and fully integrated system – from energy generation to grid application.

“The company was selected for the 63 megawatt CIRO One Solar PV Plant in Puerto Rico, one of the first of many breakthroughs in utility-scale solar power plants.”

“The company just announced that it has been selected to supply its inverters for Germany’s new 19.5-MW utility-scale solar project – one of the country’s largest.”

Well … that oughtta do it. The Thinkolator had a breezy weekend, so before I’m even done pouring in the info the answer comes tumbling out the other end … this is Satcon (SATC)

And no, I had never heard of them before this moment. They are, so they tell us, the maker of world class equipment for utility-grade solutions for solar power, including inverters and panels and grid interconnects and, well, stuff. I don’t know how it works, but they show lots of pretty pictures of solar panels and Satcon-branded beige boxes on their website, and apparently those beige boxes hold fabulous energy management systems and highly efficient inverters that help to make utility-scale solar projects most effective and efficient.

I assume that they have competition in this space, since there are so many massive electrical equipment companies — mega-companies Siemens and GE both make solar inverters too, for example, so if it’s true that Satcon’s equipment is “best in class” as they claim, that’s pretty impressive … and might even make them a tempting takeover target at some point (that’s just a wild speculation).

What’s more interesting is that Satcon is a good size, market cap of $425 million (big enough to be fairly stable, small enough to get a kick from a few big projects), and it might be deserving of that most favored of Gumshoe adjectives: cheap.

They don’t have any net debt after raising some money back in October at $3.90 per share, and they haven’t posted a profit yet, but if you believe the analyst estimates (this company has 10 analysts following the stock, a huge number considering their small size) they are on the cusp of becoming very profitable, and they trade for just 20X expected 2011 earnings (and less than 10X expected 2012 earnings). Do note, however, that this sure wouldn’t be a favorite of momentum traders at the moment — the shares are down sharply since their last earnings release, and though the stock trades for just 20 times this year’s expected earnings, that forecasted number has dropped by about 30% in the last month. This is a pick for value investors, not for those looking to lasso a rocket that’s already burned a lot of fuel.

There’s also a slightly larger company (twice the market cap, but still far smaller than the big guys) in this space that you might have heard of — Power-One (PWER), which also gets much of its revenue from inverters … and which is even cheaper with a trailing PE of 9 and forward PE of about 6, so clearly someone is worried about the future for these stocks, good and growing businesses shouldn’t be this inexpensive.

Part of that is certainly the “big picture” for solar — what the subsidies will be, how regulations will favor solar (or not) in the years to come, whether the big push for huge solar arrays will continue or if the smaller, infill and rooftop projects will get more attention, etc. But it also seems particularly difficult to forecast company earnings when they’re at “becoming profitable” transition points like this, especially because companies really, really like to tell you that they’re just about to become profitable … and Satcon just did disappoint investors a bit with their slightly-below-expected results in the fourth quarter (analysts expected that to be the first profitable quarter and it wasn’t, now they expect the March or June quarter to get that nod) and, probably more importantly, a revenue forecast that fell below analyst expectations.

That disappointment brought the shares down hard, just as similarly disappointing news did for Power-One around the same time, so if you think the outlook for Satcon’s products is good and believe that we’ll continue to see more utility-scale solar projects, perhaps we’ve got a buying opportunity — the shares were at $5 before the disappointing news, and are right around $3.60 now.

That’s about all I know about Satcon — I’m quite sure this is a match for Moors’ hints (they did just announce that 19.5 MW deal in Germany back on February 15, for example, and their 12 inverters that were chosen for the Delaware “Showcase” project were announced back on October), but I don’t know what the future holds for the business or the company. I admit to being quite intrigued by Satcon and their enticingly low valuation — perhaps even more than the bigger and cheaper Power-One, due to Satcon’s seemingly stronger focus on utility projects — but I have just started to look at the shares. I’m sure that there are legions of Gumshoe readers who have more wisdom than I can share about power inverters, the utility-scale solar business, and the competitive position of Satcon versus their many competitors, so if you dig into the stock (or have already dug) and feel like sharing, please do so with a comment below. Thanks!

And of course, if you’re a subscriber to the good Dr.’s Energy Advantage, we want to know what you think — dynamo or dud? Share your opinion with your fellow investors with a review at Stock Gumshoe Reviews by clicking here. Thanks!

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Share Your Thoughts

ShowHide Comments (53)
    1. Harris S.
      Mar 28 2011, 02:59:50 pm

      You are in top form today, I must say. But the good Doctor is in Poitical Science whichmay explain his exuberant math and overwhelming gobbledegook or details about his pick. Thanks, though, Satconn does look like something to investigate thoroughly and if I find out something of great value and interet, I share it.

    2. PCa
      Mar 28 2011, 03:30:50 pm

      If I remember well, both SATC and PWER share price fell also because of their involvement with solar installation in Italy and the possibility that the Italian govt would stop subsidizing solar companies. This didn't happen though and prices have recovered a little since then

    3. dlst
      Mar 28 2011, 04:04:32 pm

      I bought this stock when Kent STRONGLY recommended it just after it took a serious tumble in late Feb, and while I was in the green briefly, I am now down 4%. Hoping for the best. I subscribed to both his cheapo and his expensive letters, and they are both up nearly 40% since their inceptions. Sad to report that I have mostly been observing rather than buying. SATC is an exception.

    4. Pete Kneeland
      Mar 28 2011, 05:21:02 pm

      I've found your articles to be highly informative and right on the money. If I ever get re-employed, I'll upgrade to your paid site. You provide a valuable service to those of us who receive mass mailings of hyperbole daily.

    5. Dennis
      Mar 28 2011, 05:35:00 pm

      I bought this stock a few weeks ago at $3.70 and it is now $3.59. I purchased it based on a recommendation rom White Cap research.

    6. Jimbo
      Mar 28 2011, 05:46:44 pm

      Could you please tell me what you know about Joule Unlimited. And, or If, you know when they may be going Public………..By the way, I think the Stock Gumshoe is frickin awsum…..your wit is uncanny and I love it. KUDO'S……………………..Jimbo

    7. Jimbo
      Mar 28 2011, 05:52:17 pm

      OH, I almost forgot. Do you have anything on Sauer Energy(SENY)………….. It certainly makes sense to me. Not in but looking. Jimbo

    8. Dave
      Mar 28 2011, 07:50:55 pm

      I'm always in awe of your abilities. Don't know about SATC, but technally, the 50% bounce ( retracement up) will perfectly close the gap. Could make you 30% in 2 months.. After that, EW projection is $1.80 (-58%). But who knows for sure?

    9. Dave
      Mar 28 2011, 11:13:57 pm

      Moors had SATC as part of his recommendations with a 30% trailing stop. When the stock tumbled past the trailing stop he came out with an email to purchase SATC again at the depreciated price. of around $3.20 at that time.

    10. John
      Mar 28 2011, 11:42:50 pm

      DR KENT MOORS is another Scammer like PORTER STANSBERRY. They sell you a subscription so they can sell you MORE SUBSCRIPTIONS. And I would certainoly advise checking out his picks because about half of them are NOT PERFORMING. The BEST THINGI fould about Dr Kent Moors is that they will refund your subscription after you "take that trip".

    11. Henri
      Mar 29 2011, 01:35:00 am

      I subscribed to both of his paying newsletters, but found that the far pricier Inner Circle didn't do any better than the inexpensive Energy Advantage. By and large the latter is up nicely since last summer, there is nothing wrong with it. However many energy investments would have delivered just the same performance, such as e.g. recommended in the Stansberry Resource Report. I cancelled my Inner Circle subscription and got refunded.

    12. Gary W
      Mar 29 2011, 03:21:21 am

      The thing about all such gee-whiz stocks is, they will only realize their potential if the world economy enters a robust growth phase. That looks unlikely right now. I would guess the stock will fall 20-25% from here before a convincing turn-around.

    13. George Hildebrand
      Mar 29 2011, 06:59:43 am

      Just noticed today that Money Map Report has a new teaser out for new subscribers, with the same old drug as the bait–Micromet MITI, which they used in November when it was at $7.74. Now at $5.31 with the same drugs still in Phase I trials..

    14. Wiebach
      Mar 29 2011, 07:07:47 am

      The good Dr's knowledge of electrical engineering is a little shaky when he proclaims that with a 3-prong adapter plugged into a 2-hole outlet, "everything works perfectly". You just lost your safety ground. Ouch! So how well can he evaluate other electrical equipment of a much grander scale?

    15. 123456SN
      Mar 29 2011, 10:39:35 am

      He does a lot of explaining about the market situation and the energy advantage newsletter might be a good investment if you are into energy stocks and want to know about the workings of the energy markets. His portfolio is north america centered and not very exciting, but has done ok with the general energy market so far it seems. A growth market portfolio so propably won't do very well when if the bond bubble, china bubble and dollar start crashing.

    16. Terry
      Mar 29 2011, 10:09:05 pm

      On Sauer Energy I have tried calling now for two weeks and never has a
      person answered. I did email Mr Shaw and did finally respond only to say read
      the GE artical. But still have not spoken to anyone.
      Big T

    17. goldtrader
      Mar 29 2011, 11:00:50 pm

      Aloha Gumshoe,
      I was a subscriber to the good Dr.’s Energy Advantage. He promised to teach me about the oil business, and I believe that he did.

      >If you’re a subscriber to the good Dr.’s Energy Advantage, we want to know what you think — dynamo or dud?

      When I found out that he was part of the Oxford club, and that he was going to keep me informed with his free energy and oil newsletter (which I like). I canceled the trial and took the Oxford clubs premier newsletter which I have reviewed here on Gumshoe. I probably had the good Dr.’s Energy Advantage a week. Many of the Doctors suggestions came in, and came in good. I see a lot of potential here. But whatever he does, the Oxford club will be close behind so I don’t think I will miss out on anything big. He is probably the reason that I went with the Oxford club at this time.

      I have been unable to remove the unedited copy of my December 12, 2010 insider’s alert review, which follows my February 15, 2011 review. But let me go on.

      It is one thing to know that a stock is going up, take a position, and wait for events to unfold as the Energy Advantage does. But immediate alerts to action are more of my thing as a commodity trader, than a vague buy it now over a couple of months period, and follow with a 30% stop.

      It is pretty clear to me what Kent proposes here?

      This company has no earnings yet. His plan is to buy thousands of shares before earnings start to accumulate. When the company actually starts making money, the price will rise like a private company going public.

      You can learn a lot about how it all works from Dr. Kent Moore. He is educating people so that a liquid market will develop for what he sees coming. The big guys need this liquidity so in essence they are with him. In olden times he would have started a closed-end fund. But nowadays it will probably end up as an ETF or index.

    18. Steve Lombard
      Mar 30 2011, 02:29:59 pm

      I added a comment in support of Dr. Moors newsletter service and went so far as to show a recent gain of over $17k based on his recommendations. I wonder why my comment isn't being displayed?

    19. Caulker
      Apr 2 2011, 09:53:35 am

      I have had good results with the Stansberry group and when I have found that one of their letters did not fit my needs, I received a prompt refund.

    20. me3tv
      Apr 2 2011, 05:34:52 pm

      I like Stansberry's S&A Digest. Lots of froth and angst over the markets but over time I get a sense of some of the market segments and an occasional stock that deserves to be followed and examined more. Meanwhile, this big push on a company supporting the solar industry would leave me wondering a bit. THAT particular industry depends heavily on public subsidy and currently governments are getting a lot of heat about subsidizing things that are too long in the payout phase. Solar just might be one of those. Thus nat gas and coal and oil hold a better near term seat at the table.

    21. PPagan
      Apr 3 2011, 09:44:29 am

      Great work Gumshoe.
      My own research on Kent revealed Targeted Growth, Alt Air Fuels, and Sustainable Oil on the Jet Fuel front–none of them public. Interesting stuff though.
      And NGP.V (Nevada Geohermal Power) on his third teaser.
      The "diversified oil services" teaser is too general for me to get anywhere on.

    22. doggiecat
      Apr 3 2011, 11:31:56 am

      Is this the same company teased by Wealth Daily about a new NiMH battery invented by Dr Henry Chiang that will make solar power practical for just about everything?

    23. Luis Cota
      Apr 3 2011, 03:27:31 pm

      On the technical side, Satcon appears overbought and in front of major resistance. Only if it breaks through 4.2 on big volume would it be reasonable to enter. Otherwise, expect a pullback and then think of going in.

    24. John W
      Apr 3 2011, 07:27:00 pm

      Usually he nicest houses cannot be seen from the road. Likewise the best "stockpickers" absolutely, regardless of their BS about helping "others" will not be selling newsletters and hyping stuff. Cause they DON'T need to do that! Yeah it's nice to make extra income with internet email lists, but inducing "liquidity"?–front-running?–seems like a bogus benefit. Time will tell (it always does). Gumshoe, on the other hand, is truly doing us a service, and I thank him for it! Actually the best inducement for MY liquidity is to read of a recom here, watch it go UP, and then I'm game to join up with whoever. Thanks Gumster!

    25. goldtrader
      Apr 5 2011, 08:39:16 pm

      StockGumshoe ⋅ March 28, 2011 > I actually have no idea that there was any problem in connecting solar power to the grid

      Just to inform your Stock Gumshoe readers, an inverter is an electrical device that converts direct current (DC) to alternating current (AC). Electricity comes out of solar directly the same as a car battery. The inverter changes it to alternate back and forth, from plus to minus, at a rate of sixty cycles per second. This is like the electricity that comes out of your wall and runs your clocks, sprinklers, and VCRs. Satcon makes the largest most efficient inverters for utilities.

      The inverter is the cheapest part of building a solar or wind utility. Anyone of the companies supplying the other hardware could benefit by taking this company in house for an exchange of shares. They could bid cheaper utilities contracts by denying competitors the use of this technology at the price they could get it for. Once you build a grid with you own products the real long-term money is maintaining the utilities. Satcon would make it easier to win the utility bid in the first place.

      On January 19, 2011 Dr. Kent Moors told us > by the close of trade yesterday, Satcon Technology Corp. (SATC) has risen 47% in the 13 weeks it has been in the Energy Advantage Portfolio, 27% in the last month, and 11% in the last week…

    26. Xstacy
      Jul 14 2011, 01:11:09 pm

      Actually it's not that he suspects the STOCK PRICE will rise 11,100%, but the company earnings growth according to yahoo finance analyst web stats expects some 10 fold growth, where ever that's taken from. Funny, but that's how subscriptions are sold I guess.

    27. M. Rowe
      Aug 10 2011, 11:50:45 pm

      I received the email from Mr. Kent Moors regarding the hints of a great stock about to explode. I figured it out and was correct in my thinking based on what I read on Gumshoes info. I looked up Kent Moors and found him to be authentic. However, I got on Yahoo Finance /SATC and found most of the folks on that Board where not happy with SATC's progress. It is now below $2. I also looked up info on lawsuits pending and discovered there are over 10 major lawsuits against the company. I'm a bit leery of investing in a company with that many lawsuits against it and the message board on Yahoo Finance is not overly optimistic. While it might be a good buy right now between $1.05 and $1.39, just can't seem to make myself purchase it. I like the idea of using natural gas as our primary source of energy and becoming free of being controlled by the middle east oil conglomerates. Just wondering if I should trust Moors in his thinking.

    28. goldtrader
      Aug 15 2011, 04:39:03 pm

      Xstacy :> Actually it's not that he suspects the STOCK PRICE will rise 11,100%, but the company earnings growth <

      What he said was "I just discovered one such company in an energy niche projected to grow 1,500 times more than oil."

      Stock price should quadruple when that particular energy niche grows faster than oil.

    29. Lyle Ashley
      Nov 17 2011, 08:21:50 pm

      Thank goodness I stumbled on your website! I am new to the investment field and almost got sucked in by several of the teaser pitches you have covered. Thank you for your work — it’s really helpful for a newbie. Keep up the good work.

    30. Seri
      Feb 6 2012, 03:39:41 pm

      I’m thinking LNG, should had got back in OCT, but still has upside because they are the largest LNG exporter and building their 2nd export site, so it could go up huge, but I’m waiting for a pull back, but may or may not happen, in it’s 3 top now, they have a deal with China ,so it may keep going without hesitation…anyone else got any idea’s on it ?

    31. square
      Feb 15 2012, 03:35:15 pm

      Have been following Money Map Newsletter since Nov.without buying.
      MITI was convincingly pitched in Dec.11,with shares around 5,5 and towards end of Jan.12 received an urgent alert to “sell” at 10.90 because of some takeover deal with a major pharma.Remains at that area since,and was pretty impressed, not to say unhappy that i haven’t invested a couple of grand.
      Don’t know about Moors’ ultra confident predictions and stories…

      Jun 19 2014, 08:25:05 pm

      Travis, do you have any suggestions on Dr. Moors latest teaser about he has found a profoundly huge money source in just one small community, that will turn one out every 50 people into millionaires. He knows the backdoor way for anyone to tap into this wealth. What does the Thinkolator think?

    33. Trent Jordan
      Jul 5 2014, 02:28:17 pm

      Is it true that solar cells now require a coating process during manufacturing that is
      expensive and hazardous. And a new coating is being developed that is not expensive or hazardous and that reduces the amount of electricity produced by just a little bit, but the overall costs go way down?

    34. Ernest Bouthillier
      Jul 4 2015, 10:24:46 am

      Well it is very intresting to note as of month of June 2015 this stock is trading for $0.0025/share what has happened ?? The Techs on this stock are all down.
      If they are to make money some thing unexpected has to happen . So for now
      ill just put them on my watch list.

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