Thursday, July 26, 2007

Distributed Energy Systems Corp

Distributed Energy Systems Corp is a NASDAQ listed security that has been trading in a range between $0.55 and $5.10 over the past year. With 39,772,880 shares outstanding, a recent price of $1.08 gives a total market capitalization of $39,375,152. While there are certainly larger companies, Distributed Energy Systems Corp has definitely earned its place in the pack. Last year, Distributed Energy Systems Corp created $-1.51 in earnings for every share outstanding.

Distributed Energy Systems Corp is currently priced by the market at 0.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Distributed Energy Systems Corp is unlikely to be an interesting value proposition. Consistent earnings are the key to high valuations and this security is not on its way.

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