Monday, July 16, 2007

Environmental Power Corporation

Environmental Power Corporation is an AMEX listed security that has been trading in a range between $3.54 and $9.34 over the past year. With 9,787,380 shares outstanding, a recent price of $8.63 gives a total market capitalization of $83,975,720. While there are certainly larger companies, Environmental Power Corporation has definitely earned its place in the pack. Last year, Environmental Power Corporation created $-1.94 in earnings for every share outstanding.

Environmental Power Corporation 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, Environmental Power Corporation is unlikely to be an interesting value proposition.

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