Saturday, February 26, 2011

Valuation of DayStar Technologies, Inc.

DayStar Technologies, Inc. (NasdaqCM: DSTI ) ( ) DayStar Technologies, Inc., a development stage company, engages in the development, manufacture, and marketing of solar photovoltaic products to the grid-tied and ground-based photovoltaic markets. The company offers solar photovoltaic modules to convert sunlight into electricity. It provides monolithically integrated copper indium gallium selenide modules on glass laminate substrates for centralized utility power plants, commercial building roof tops, and smaller residential roof tops. The company was founded in 1997 and is headquartered in Santa Clara, California.

As of February 26,2011, it had a 52 week stock price range of $0.72 - 3.69. As of December 31, 2009, the company had a net income loss of $25,040,000 as well as losses in 2008 and 2007. As of December 31, 2009, it had no long term debt and net tangible assets of $23,141,000. (Source: Yahoo Finance)    

Since its founding, DayStar has been focused on developing a manufacturing process based on sputtering technology that would enable high volume production to achieve the lowest costs for the highest solar cell performance. ( Source: DayStar Website )

DayStar Technologies is in the process of positioning itself to take a leading spot in the Solar Energy market which shows promising potential. However, they are currently still in the development process. Other green initiatives, such as recycling and water use reduction in their operations, by the company were not found on their website.

This is a Green Business according to all available information. Currently, the business is properly valued as a company in its start up phase even though it is over 10 years old. The company is developing a new product and manufacturing process which takes time and, in the energy market, lots of financial commitments. However, the company does have some assets and no long term debt as of 2009. The stock price is still very low, and if the company’s product succeeds, then the company should have no problem selling its product.

Overall, investing in any company with income losses or if the company is still in development phase should be considered with caution.

Saturday, February 19, 2011

Investment Practices: Making New Valuations

It’s important to understand the industry in which you invest your money. An important rule of thumb is to invest in what you know. You should do research before investing in a new industry. An entire industry may be overvalued, and if you are not alert to relevant information in the industry, then you may invest in companies which look good on the surface, but which are fundamentally flawed.

An entire industry may be on the verge of collapse or a radical transition, and if you are not privy to subtle aspects of the industry, then you may invest in a company that refuses to change with the tide. The company may appear to be a reasonable investment when considering it in the light of only the past, but investors should be studying the future as well as the past and present conditions.

Any particular valuation you read or hear from someone else should only provide a starting point. Always research your investments before you make them. In general, stick to the things you know or the things you are interested in knowing. Don’t just invest on a hot stock tip if you are unsure of the real risk. All investments do contain some risk, so do your homework first. A prudent investor will win the big game.

Investors should be studying the market now, because it is in transition from an industrial economy to a sustainable economy. At this time, in early 2011, the stock market as a whole is overvalued. There are many good investments out there, but the wise investor will look diligently for the sustainable businesses and reject the unsustainable businesses.

The prudent investor will make a new valuation of their portfolio, and use it to determine which of their investments are no longer suitable for their long term financial goals. Always make a complete valuation of a business before you invest, and review your investments to determine if they are on course.

Serious investors who like the companies they have money invested in should contact them and advise them to apply the Formula of Sustainable Design to their business to keep it competitive. Urge them to adopt sustainable concepts and designs. Don’t be a passive investor, be an active and suggestive investor.

Saturday, February 12, 2011

Valuation of RailAmerica

RailAmerica, Inc. (NYSE: RA) ( )engages in the ownership and operation of short line and regional freight railroads in North America. As of December 31, 2009, it operated a portfolio of 40 individual railroads with approximately 7,400 miles of track in 27 U.S. states and 3 Canadian provinces. The company provides rail freight transportation services for a range of products, such as farm and food products, lumber and forest products, paper and paper products, metals, chemicals, and coal products, as well as offers ancillary rail services. The company was incorporated in 1992 and is headquartered in Jacksonville, Florida. (Source: Yahoo Finance)

As of February 12, 2011, its 52 week stock price range was $9.16 - 13.61. As of December 31, 2009, it had a net income of $15,842,000 and long term debt of $643,109,000 and net tangible assets of $321,908,000.

As of February 12, 2011, no information concerning sustainability or social responsibility operations could be found on their website, however, they have a strong orientation towards safety. Like all major freight railways at this time, they haul pretty much everything, including non-sustainable freight and products such as coal. There are articles and press releases that were found by preforming keyword searches using “RailAmerica goes green”. One such press release can be found here.

RailAmerica is a Green Business, however, it still hauls freight for unsustainable operations which limit its capacity to make a full transition to a Basic Green Business. This business is properly valued at this time. It has a stable financial portfolio, a good level of infrastructure, and a strong market position. It will benefit by continuing its efforts to make the green transition as well as adding more information to its website.

Friday, February 11, 2011

Valuation of Canadian Pacific Railway Limited

Canadian Pacific Railway Limited (NYSE: CP) ( ) through its subsidiaries, provides rail and intermodal freight transportation services. It transports bulk commodities, including grain, coal, sulphur, and fertilizers; and merchandise freight that consists of finished vehicles and automotive parts. The company also transports forest products, such as wood pulp, paper, paperboard, newsprint, lumber, panel, and oriented strand board; and industrial and consumer products, which include chemicals, plastics, aggregates, steel, mine, ethanol, and other energy related products. In addition, it transports intermodal traffic comprising time-sensitive retail goods. As of December 31, 2009, Canadian Pacific Railway Limited provided rail and intermodal freight transportation services over a 15,400-mile network. It serves the principal business centers of Canada, which include Montreal, Quebec, Vancouver, and British Columbia; and the Midwest and Northeast regions of the United States. The company was founded in 1881 and is headquartered in Calgary, Canada. Canadian Pacific Railway Limited operates independently of Canadian Pacific Limited, as of October 01, 2001.(Source: Yahoo Finance)

As of February 11, 2011, it had a 52 week stock price range of $49.19 - 69.92. It had net tangible assets of $4,710,298,000 as of December 31, 2008. It had long term debt of $3,731,284,000 and net income of $523,467,000 as of December 31, 2008.

Canadian Pacific Railway Limited has a Social Responsibility report. Access here. Canadian Pacific Railway Limited has a number of environmental programs underway. These include air initiatives such as locomotive fleet renewal, anti idling technology and policies, fuel conservation teams, rail lubrication, and new locomotive design testing. Read more here. According to the Federal Railroad Administration, railroads are 1.9 to 5.5 times more fuel-efficient than trucks, depending on the commodity and length of the haul. Visit Canadian Pacific Limited’s website to find other green rail facts.

Canadian Pacific Railway Limited is a Green Business that hauls freight for both sustainable and unsustainable businesses. It’s basic business model is sound and the company is taking steps to improve its sustainability. However, the company will not obtain the level of a Basic Green Business until it stops hauling freight for unsustainable operations. Overall, this business is properly valued because it has a good deal of infrastructure and a sound market position.

Read The New Transportation Plan by Gothic Green.