| IX Energy Lands Third New Contract in Two Weeks |
What do the following dates and places have in common? June 22, Ann Arbor Michigan; June 25, Saginaw Michigan; July 7, New Orleans. Those dates come pretty close together, and all have a number of things in common.
Those dates relate to contract awards for solar rooftop arrays being installed as part of the US Government's initiatives to deploy new green technologies. Two of the locations are VA hospitals- one is a High School.
And, there's one more thing. All three contracts to design and manage the installations were awarded toOTC Journal following IX Energy. That's three new contract announcements all in a stretch of two weeks, which is pretty impressive when you consider this is just starting.
Earlier today, IXEH announced it has been awarded a contract to design and install a 28kW system at Warren Easton High School in New Orleans as part of The New Orleans Solar School Initiative.
In this case, the project is being funded by a grant from Nike- that's right- they are Just Doing It. In all, there will be solar installations of 4 high schools in New Orleans- three more to be announced.
The projects serves the dual purpose of both energy savings and demonstrating a practical, working model of solar technology to the students. The installation will also provide jobs in the New Orleans area.
As covered in past editions- once again- IXEH's exclusive relationship with US Government owned Unicor has yielded another contract to design and install a solar system.
I don't know how you see it, but in my view three new contract signings over a period of two weeks is very impressive, and can only lead one to believe there is more to come and substantial growth out in front of IXEH. The Unicor solar panel facility is just coming online, so these contracts are just the beginning of a large series of US Government opportunities.
After all, $1 billion has been allocated for improvements to the VA System alone. That business will continue to flow for a couple of years, and is just getting started. IXEH has already been awarded two contracts to design and install solar arrays for VA Hospitals.
We've now established the company is moving forward rapidly. Now, how about the stock? Going the opposite way. In fact, as I write the coverage of today's event, the stock is making a new low.
The stock is trading at about $.20, which I believe is a bargain basement steal. I estimate their relationship with Unicor probably has an intrinsic value of $50 million when one considers the number of future contracts to be awarded by the US Gov't. Three new contracts have been signed in the last two weeks alone. The whole market value of the company at these levels is about $12 million.
I don't know where the bottom is, or what it will take to turn the stock around. However, I do know this company is risky, but it is certainly headed in the right direction.
We started with this one at $.57, with an SSL of $.45. So far, a miserable performance on the stock side, and a great performance on the company side.
With the stock cut in half from my original SSL, now might be the time to consider pouncing on this oversold, bargain basement level. Put in a tight stop, and see if you get a bounce on today's news. I don't know why the stock is trading so poorly- clearly there is more supply than demand today. If that dynamic changes, and the stock bounces, you might be in position for a great trade.
If you are holding this stock at higher levels and didn't get out, think longer term and recognize the company is doing its part by landing these Government sponsored solar contracts.
Here is today's news in its entirety:
7/7/2009 10:16:25 AM - Market Wire
First School to Receive Solar in New Orleans Solar School Initiative
NEW YORK, NY, Jul 07, 2009 (MARKETWIRE via COMTEX News Network) --
IX Energy Holdings, Inc. (OTCBB: IXEH), a company engaged in the development of solar power and other renewable energy solutions for the federal government and commercial markets, announced that it is partnering with Advanced Green Technologies (AGT), a subsidiary of Advanced Roofing, to build a 28kW rooftop solar array at Warren Easton High School in New Orleans as part of the New Orleans Solar School Initiative. Advanced Roofing is the prime contractor on the installation.
The New Orleans Solar School Initiative, which aims to roll out solar to four New Orleans schools, is a project being led by Winrock International, Entergy, and Nike. Entergy, a local New Orleans utility, is taking the lead in the investment on the project to deliver clean energy back into the community of New Orleans. The project was initially made possible by a grant from Nike through proceeds it generated through a transaction of carbon offsets registered with Winrock's American Carbon Registry.
The 28kW grid-tied system, covering 6,634 sq. feet, will produce 37,000 kWh of solar energy each year and can be expanded to as much as 125kW. AGT will be responsible for the design and integration of the system while IX Energy will provide the electrical install, materials and balance of system. The project, scheduled to start in the first week of July, is expected to be complete by August.
Steve Hoffmann, CEO of IX Energy, said, "We commend groups like this on their leadership and continued proactive stance in developing and supporting renewable energy projects such as the New Orleans Solar School Initiative. It creates a valuable learning environment for students in the community to see how solar energy can be implemented, where the school becomes an example for teaching the importance of conserving energy. In addition, we are pleased to be working with AGT, whose products are well suited for this project."
AGT will also provide an interactive solar monitoring system to measure the daily, weekly, monthly and lifetime totals of energy generated in kWh. The visual display also tracks the impact the solar system is having on the environment in tangible terms including gallons of gas, dozens of light bulbs and pounds of coal, all off-set by solar energy.
"Renewable energy has become a global necessity," stated Michael Kornahrens, President of AGT. "Providing the products and installation is only the beginning. Educating children and adults alike on the importance of solar energy and how a photovoltaic system works is extremely important. Our solar data monitoring system enables us to look at the overall production of the solar system and show the environmental offsets made directly from the use of solar energy."
About Advanced Green Technologies
Advanced Green Technologies, an innovative renewable energy solutions provider, procures building-integrated renewable energy products. With 25 years of experience in the commercial roofing and building industry, AGT provides the products, designs and support for installations of the most advanced, cost effective, and efficient green solutions for customers. For more information on Advanced Green Technologies renewable energy solutions, contact 954 735 2641 or visit www.AGT.com.
About IX Energy Holdings, Inc.
Founded in 2006, IX Energy, Inc., the wholly owned subsidiary of IX Energy Holdings, Inc. is a renewable energy services company engaged in the design, marketing, development and financing of solar power systems and other renewable energy solutions to federal and commercial customers. In June, 2008, the Company entered into a non-exclusive agreement with Federal Prison Industries, Inc. ("UNICOR"), under which UNICOR provides the labor for assembly and production of solar panels for the Company, and the Company sells the solar panels to Federal customers. The agreement has a term of five years. For more information about IX Energy Holdings visit www.ixenergy.com.
Forward-Looking Statements
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements with the terms "believes," "belief," "expects," "intends," "anticipates," "will" or "plans" to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.
Company Contacts Corporate Communications Aspire Clean Tech Communications, Inc. Todd M. Pitcher 760-798-4938 Rubenstein Investor Relations Tim Clemensen 212-843-9337
SOURCE: IX Energy Holdings
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