Energy Mad IPO

[minimoke]

Finally an IPO to whet our appetites. Anyone use their light bulbs. This year it had revenue of $8.6m and reported net profit of $0.8m

[BIRMANBOY]

Ok give up...what is it?

Finally an IPO to whet our appetites. Anyone use their light bulbs. This year it had revenue of $8.6m and reported net profit of $0.8m

[Oiler]

Finally an IPO to whet our appetites. Anyone use their light bulbs. This year it had revenue of $8.6m and reported net profit of $0.8m

Minimoke I assume you are talking about the Christchurch based Eco Bulbs engineering and manufacturing company???

[janner]

If it is the company you talk of Oiler

Where do we find info about them ??

How do they compete against mass producers of Eco bulbs ??

Who is handling the IPO ?

[BIRMANBOY]

MM you are faster source of info than papers. Saw the writeup in the Wgtn Sat paper today so now I know. Should be popular with investors I would think. Only problem I see is all of their production is done in China and I dont know how safe (zero?) from copying is their idea and production set up.

[POSSUM THE CAT]

Is this an obsolete technology now the new Quarts Halogen bulbs are available & most of these work with dimmers Much more useful at about the same or less cost

[minimoke]

MM you are faster source of info than papers.

As a closet greenie I have a bit of an interest in emerging companies and their technologies so I try to keep an ear to the ground.

This IPO has piqued my interest and has got past my first stage assessment.

In terms of their technology I'm not overly convinced. I've tried a couple of CFL's (not the "Ecobulb") and found them to take ages to warm up, didn't give the light I expected and the blew in bugger all time. I find some irony in the concept that us greenies don't want to burn a bit of coal cos of the risk of sending CO2 into the atmosphere but don't mind introducing a bit of mercury into the house and landfill. I've got over 50 light bulbs in my place so that's a fair bit of mercury being extracted and eventually dumped. While they CFL's don't put out much heat the advantage of incandescent bulbs and plasma TV's is that a secondary benefit is the heat they put out so not all energy is wasted on a cold winters day.

That aside I quite like their distribution model. Light bulbs are essentially a high volume consumerable and getting bulk into the market via energy suppliers is quite a nice idea. Not without risk, mind, but still a concept that may have some life left in its cycle. This contrasts with PLU which was trying to get a capital item (smart Meter) to market in the same way and this idea hasn't turned a profit. (Note to self: why do we have small rural electricity suppliers backing these start ups?)

I'm getting a couple of warning bells with this IPO. Apparently cash raised will, in part, be used to retire debt. I'm presuming these are the convertible notes but I have to look into this in more detail. I take it this is a way the intial backers are hoping to get their money back out. Debt isn't a bad thing and I think they could put the cash to better use. I'm also not convinced with their R&D investment. $36k is nowhere near enough with new LED and Halogen products coming out every day. Also not impressed with one of the Directors - he's behind the Pukaki Airport which I think is one of the cookiest ideas to come out from down south for quite some time .

These concerns aside I think there is still some life left in greenwashing light bulbs - not necessarily a lot of life but some life all the same. I'm not sure if they have left their run a bit late. "Eco" could just as easily translate into "economical" so there is still some potential.

This one's not in the bin yet.

[fish]

MM

China and usa are moving fast on producing efficient and getting brighter LED which will fit all household lights and voltages .
They dont heat up and should last 50,000 hours . There is less fire danger and no need to remove ceiling insulation around them . No mercury .No ultraviolet radiation emitted . I have a few fitted in my house and they are just so much better than compact fluorescent .

They deserve to be called eco bulbs unlike those produced by energy mad .

If I was you I would be investing in cen -I have been buying more at recent low prices . I believe they are a very safe stock whereas energy mad is speculative imho . I also believe cen will likely double sp within a few years -they have been over 10 dollars before however are now far better set up and just need a dry year or takeover offer or simply a bit of patience as they are a low cost generator .

[Jaa]

I think you guys have got EnergyMad a bit wrong. They are more of a marketing/distribution company than a manufacturer aren't they? I just assumed the bulbs themselves were made in China by a contract manufacturer but I could be wrong?

In that case light bulb innovation and new products are good for them. In a few years time they can sell us the EcoBulb Next Generation with fancy LED bulbs or whatever the latest technology is.

[minimoke]

MM

China and usa are moving fast on producing efficient and getting brighter LED which will fit all household lights and voltages .
They dont heat up and should last 50,000 hours . There is less fire danger and no need to remove ceiling insulation around them . No mercury .No ultraviolet radiation emitted . I have a few fitted in my house and they are just so much better than compact fluorescent .

They deserve to be called eco bulbs unlike those produced by energy mad .

If I was you I would be investing in cen -I have been buying more at recent low prices . I believe they are a very safe stock whereas energy mad is speculative imho . I also believe cen will likely double sp within a few years -they have been over 10 dollars before however are now far better set up and just need a dry year or takeover offer or simply a bit of patience as they are a low cost generator .

I'm inclined to agree Fish. I'm already in CEN and anticipating gettign into Solid Energy at its IPO. IPO's have always interested me for their stag potential and short term gains. I don't see a long life with Energy Mad for as long as they are flogging CFL's. But as Jaa has pointed out it is their distribution concept which has the value. Its a matter of working out if there is any upside left in it before the new technologies kick in and whether these can be applied to Energy' Mads distribution model.

(out of all the lighting I have at my place the LEDS have out performed expectations compared with the others. )