Hybrid Technologies Inc. (HYBT) Rated Speculative Buy, Target Price 5.12 by Beacon Equity Research

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New report issued on a hybrid technology company which is targeting the fast growing hybrid market.  

Hybrid Technologies Inc. (HYBT) has been rated “Speculative Buy” with a target price of $5.12 by Beacon Equity Research

The full report is available at http://www.BeaconEquityResearch.com.

In the report, the analyst writes, “Hybrid Technologies, Inc. (HYBT) is developing and marketing electric-powered vehicles and products based on advanced lithium battery technology. The Company has developed a proprietary advanced lithium management and battery-balancing system and is converting vehicles from conventional gasoline and diesel fuel systems to electric power. HYBT has converted several test vehicles to electric power, including Chrysler PT Cruisers, Mini Coopers, Chrysler Crossfires and Mercedes' Smart cars, and is commencing production of its Mini Cooper lithium hybrid.  The Company is also converting two-wheeled and three-wheeled vehicles such as bicycles, motorcycles, small ATV’s and vehicles for the handicapped into lithium-powered products.”

Investment Highlights

Business model based on technology advances

The Company is using its advanced lithium battery technology to develop and eventually produce and market lithium-powered vehicles and products for the US market. HYBT is developing a portable battery power pack technology and converting popular vehicles from conventional fuel systems to electric power systems. To date, the Company has successfully converted cars as well as scooters, bicycles, mopeds, motorcycles and even homes to zero-emission, lithium battery power. 

HYBT’s business is not limited to hybrid fuel technologies: the Company also offers VoIP telecommunications services to businesses and residential customers and plans to extend the operations of this business segment into Canada, Europe and the developed countries of Asia.

HYBT’s battery technology offers one of the industry’s fastest charger systems

HYBT hybrid vehicles draw power from electricity stored in batteries instead of from the combustion of liquid fuels. The Company uses high energy density and lightweight rechargeable lithium ion batteries that can be charged simply by plugging into household electrical outlets.

In August 2007, HYBT announced the development of a highly advanced rapid charger system. A battery pack equivalent to 35-40 kWh systems can be charged in less than 4 hours from 0% state of charge to 100% state of charge. Compared to other chargers, HYBT’s rapid system reduces charge time by 65%. 

Technology applications tap an expanding market

HYBT’s battery packs can be produced in a variety of sizes, capacities and voltages to suit a broad range of product applications.  In trials of its technology, the Company has successfully converted several models of cars, including Chrysler PT Cruisers, Mini Coopers, Chrysler Crossfires and Mercedes' Smart cars to lithium power. It has also converted numerous two-wheeled and three-wheeled vehicles such as bicycles, motorcycles, small ATV’s and vehicles for the handicapped. HYBT hybrid vehicles offer numerous advantages compared to conventional fuel vehicles, including zero-emissions, high-speed capacity, rapid charge time and overall functionality. Its hybrid vehicles are able to reach speeds of 80 miles per hour, accelerate from 0 to 60 miles per hour in six seconds and travel more than 120 miles on a single charge.

Portfolio of contracts

The Company has signed contracts for the development and deployment of its technology with  NASA, the Canadian Ministry of Transportation, the City of New York, the US Navy, and Paratransit,  a New York transportation company, among others. 

HYBT’s hybrid ATV-LX vehicle was used by NASA during a training mission and has been chosen by the US Navy for military missions. Initially developed for military applications, the ATV-LX will be made available to consumers by year-end 2007.  In addition, the Company has contracts with Arcasis, a contractor to the US EPA, for the use of hybrid vehicles in advanced roadside air quality monitoring. Increasing government support and sponsorship of environmentally friendly technologies will likely create future government contracting opportunities for HYBT.

Media coverage enhances HYBT’s visibility

Media coverage is helping the Company solidify its position as an emerging leader in hybrid automotive technologies. The Company’s products and technologies have been featured on TV and in the print media on CNN, CBS the Early Show, FOX - the Big Story, ABC, NBC, CTV, CBC, WCNC, WBTV, TV Tokyo, CFCN Money TV, Space Channel, Car and Driver, Global News, Business Week, Living Well magazine and MSNBC. Newspaper stories about the Company and its technology have appeared in NC Business Journal, Statesville, Calgary Sun, Calgary Herald, Toronto Star, Chrysler Freedom Magazine, Easy Rider, DuPont Registry, Kyodo News, Charlotte Weekly, Mooresville Tribune, New York Post, Los Angeles Business Journal and other papers.

The Discovery Channel recently completed filming a special series on Hybrid Technologies and their latest production vehicle, the lithium-powered Mini Cooper. Discovery Channel reaches 431 million homes in 170 countries.

HYBT is already generating revenues

The growing market acceptance of HYBT’s products is evidenced by the Company’s sizable revenue growth in the first nine months of FY 2007. HYBT generated nearly $1 million in revenues during the first nine months and is on track to reach $1.5 million by fiscal 2007 year-end.  Going forward, we anticipate that the creation of a nationwide distribution network for its hybrid vehicles will allow HYBT to generate consistent double and triple digit revenue growth over the near and medium-term.

Environmental concerns drive product demand

Currently, hybrid vehicles have a limited presence throughout the world, but over time this technology has the potential to become mainstream. High prices have been a limiting factor for hybrid cars but this could change as demand builds and manufacturing economies of scale allow prices to fall. An estimated 187,000 hybrid vehicles were sold in the US through the first half of 2007, accounting for 2.3% of total US new light-vehicle market, and this market remains on track to sell 345,000 hybrids in 2007—a 35% increase over 2006.

Environmental concerns and the need to reduce dependence on foreign oil are encouraging governments to promote the purchase of hybrid vehicles. In the US, hybrid electric cars qualify for a federal income tax credit of up to $3,400. In addition, many states provide additional tax credits for hybrid car purchasers. European buyers also benefit from government incentives; in the Netherlands, for instance, a EUR 6000 discount is offered for new hybrid vehicles while the Republic of Ireland offers a 50% discount on registration taxes for hybrid vehicles.