Company Overview:
Development and commercialization of solar energy products and technologies for a wide range of applications including power production and water desalination.

· Offers building-integrated photovoltaic (PV) roofing materials for commercial, industrial, and residential markets. Marketed under the trade name SolarSave®, the product line includes roofing membranes, roofing tiles, custom architectural PV glass, and balance of systems equipment such as inverters, combiners, and accessories

· OEGY also holds an exclusive, worldwide license to a solar thermal technology called SunCone™ CSP (Concentrating Solar Power), which is currently being developed to generate potable water and distributed power

· With the acquisition of WaterEye Corporation in December 2006 , OEGY intends to also develop and commercialize utility monitoring products.

Market Cap: $71m
Shares Outstanding: 92.6m

For those who have followed my trades for some time are probably familiar with this stock as I have already analyzed and traded it previously though was shaken out by the volatility with penny stocks and was forced to sell in order to minimize downside risk. I wish I was still holding after Fridays 42% rally

Open Energy has placed a huge foot in the door with some major companies that will help expand its presence in the solar industry in the future. Being such a small company and the speculative nature of the products OEGY provides I believe this could be a huge hidden gem in the solar sector. I believe that solar tiles in the roofs of residential homes and commercial buildings have a fighting chance at becoming standard for all homes and commercial buildings as the the demand for sustainable energy is increasing heavily. Morgan Stanley estimates the solar industry will grow at a rate of 43% annually through 2010. I really like the idea of Open Energy’s products and believe this stock will not only be a great trade, but a longer term investment as well.

Partnerships:

- Partnership with Suntech Solar (nyse: STP) for the manufacture of Solarsave tiles and glass

- Agreement with the largest cement tile manufacture in the us, Eagle Roofing, to distribute products through their sales channels to major developers and roofing contractors nationwide.

Product Descriptions: Source From www.openenergycorp.com

SOLARSAVE® ROOFING TILES

Open Energy’s SOLARSAVE® Roofing Tile is a unique product that enables to maintain the natural look of your property while generating clean, safe, efficient electricity from the sun. SOLARSAVE® Roofing Membranes can be easily installed on residential, commercial, institutional, and industrial structures, making it an ideal solution for your renewable energy project.

Features & Benefits

• Easily installed using Roofing Tile Institute standards
• Robust, weatherproof, fire-rated, fully warranted
• Edge profiles naturally shed water
• Durable low voltage system is safer to install and maintain
• Modular, expandable system can be energy customized
• Snow load capacity over 200 pounds per square foot
• Wind load rating up to 125 mph with clips installed
• Class A Fire rated
• CSA certified; UL1703 listed; Class II 600VDC
• 25-year warranty to produce 80% power output
• Inverter had very high conversion ratio of AC to DC
• Comes in different colors; black, red & brown

SOLARSAVE® ARCHITECTURAL PV GLASS

Open Energy Corporation also designs and manufactures custom PV glass laminates to meet the aesthetic, performance, and structural requirements of architects and design professionals. Sizes, shapes, and design configurations can be built to match virtually any specification available today, allowing for a direct substitution for monolithic, laminated, or insulated glass panels. It is often desirable to achieve translucency in photovoltaic skylight applications. While a standard photovoltaic cell is an opaque 125 mm2 square, our cells can be arranged within a clear glass panel to provide appropriate light levels and shading coefficients. A wide variety of colors, thickness, patterns, and shapes can be produced.

SOLARSAVE® ROOFING MEMBRANES

Open Energy’s SOLARSAVE® Roofing Membrane is a unique product that enables to maintain the natural look of your property while generating clean, safe, efficient electricity from the sun. SOLARSAVE® Roofing Membranes can be easily installed on commercial, institutional, industrial, and residential structures, making it an ideal solution for your renewable energy project.

Features & Benefits

• A weather resistant, fire rated, low maintenance product
• Easily installed by roofers with no demolition or disposal costs
• 20-year warranty covers material and electrical performance
• Highest per foot power output per square foot in the industry
• Captures low light levels 2% to 5% better than glass
• Minimizes power loss from shading, debris, and soiling
• Superior aesthetics as well as performance features
• No structural reinforcement or rack mounting required
• Modular; fully scaleable and easily expandable
  

Recent Orders

Open Energy Receives $4.21 Million Order From SolarPro
Monday July 2, 9:00 am ET

Company’s SolarSave Tiles Will Be Installed in New Residential Development in Central California

SOLANA BEACH, CA–(MARKET WIRE)–Jul 2, 2007 — Open Energy Corp. (OTC BB:OEGY.OB - News), a renewable energy company focused on providing solar solutions to its residential and commercial customers, today announced a $4.21 million dollar purchase order for SolarSave® PV Tiles from SolarPro International, a solar integrator based in Sacramento, California. Open Energy’s building integrated PV tiles will be installed on approximately 375 new single-family residences in the Placer County development.

Open Energy Receives $972,000 Purchase Order From Premier Power for SolarSave(R) Roofing Membrane System
Thursday June 7, 9:00 am ET

Project Slated for Luxury Destination Resort in Napa Valley

SOLANA BEACH, CA–(MARKET WIRE)–Jun 7, 2007 — Open Energy Corp. (OTC BB:OEGY.OB - News) today announced that it has received a purchase order from Premiere Power Renewable Energy, Inc., for a photovoltaic roof valued at $972,000 for installation on the new Bardessono Inn in Napa Valley, California. The property is being built by MTM Management, LLC, one of the leading developers of premier destination resorts in North America.

Interview With the CEO:

Open Energy recently had an intriguing interview with Market News First about their company and developments. Can be heard via podcast here: http://files.mn1.com/mp3/OEGY_071307.mp3

Conclusion:
The current fundamentals of the company are nothing impressive as they lost $6.2m on sales of $1.7m on their last reported quarter. Though with their innovative products and the demand for sustainable energy into the future, I think OEGY could be a major player in the future. As its products are manufactured through the largest solar company in China and the 3^rd largest in the world, OEGY’s manufacturing capacities are nearly infinite and will be able to meet the demand for its products with ease. Open Energy further increased their potential when they teamed up with the largest cement tile roofing company in the US for product distribution. Now they’re distribution chains for their products are being brought to a vast amount of customers and I believe the orders for their products will continue to increase in $ amounts as well as frequency. The company is expecting to release its next quarterly report with the next 1.5 months, In the interview at MN1.com the CEO of OEGY.OB said we could expect to see a significant increase in sales.

Further Analysis can be found at: http://www.gaskinsco.com/linkto-oegy.shtml

Technical Analysis:

This is one of the most bullish stock charts i’ve seen in a while. The amount of volume building up to fridays breakout was quite significant which leads me to believe momentum, along with speculation, could drive this stock much higher from here. OEGY is coming off of its bottom and the momentum and speculation around Sustainable energy is bullish. 1/2 of this trade is going to be for a short term trade, the other 1/2 will probably stick around in my portfolio for a while as i think the long term outlook of this company is very bullish. Preferably i would like to purchase some shares around .70 near the midpoint of Fridays breakout candle. Though due to the momentum, we might have to settle to chase a rally tomorrow instead for a purchase.

Looking to buy OEGY.OB on Monday

This entry was posted on Monday, July 23rd, 2007 at 3:21 am and is filed under Small Cap Stock Picks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.