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This is the largest manufacturer of industrial batteries in the world. It has very little auto exposure... good, right... and, like any good "new tech" stock, it's focused on making their batteries run longer, with less maintenance, while taking up less space. Talk about innovation! That's technology!...

This company makes batteries that are used in moving equipment... Forklifts are about half their sales now... and that plays into that global logistics boon, that is still going on, despite the market being down 200 today... not to mention, the demand for mining and railroad equipment...

ENS also has a reserve power business, where they make batteries used to back up equipment in case of power failure... Telecom networks buy these batteries, and we know there's a big market buildout right now... and they're also used in uninterrupted power systems... backup, okay... and also aircraft.

That's the business. Here's what makes it "new tech"... here's why I want you to write down ENS...

ENS has a proprietary - meaning no one can copy it - battery technology... It's called "thin pure plate lead"... they call it TPPL... This is the tech that makes old-fashioned lead acid batteries run longer, with less maintenance, and a smaller size... Think "under the hood" soon (i.e., in our automobiles soon)...

This may be one thing "new tech" and "old tech" have in common... They're the only places where smaller is better. ENS actually got a contract to use these batteries in the Navy's nuclear submarine retrofit program... so, when you hear that nuclear reactors fail, don't worry... ENS has your back!

Like any good "new tech" play, ENS is constantly trying to expand the applications of their technology. They're also expanding the plant that makes these TPPL batteries because, as we learned in the last quarter's conference call... listen to the conference calls... ENS can't keep up with the demand for these batteries.

They're running 7 days a week, and they still don't have the extra capacity...

By the way, for those of you who like to laze around, and think you can invest without doing the homework... you would have no idea how great a stock ENS is, without listening to that call like I did... and learning that key fact about the demand... Just a sidenote for any of you slackers out there... you're not wanted in Cramerica...

This TPPL technology currently makes up only 10% of its sales... and another proprietary technology called "Square 2" makes up another 10%... So, collectively, the newest "new tech" at ENS is 20% of sales, and going higher...

The company is also a ROW-er... In 2007, 60% of its sales were from outside North America.

The company also recently announced... and this you're going to love, okay... this is what you're thinking about... The company also recently announced a pilot program to deploy plug-in hybrids... That's right. Finally, at last... you plug in your car at night in the garage, to fight traffic in the morning...

ENS is developing these batteries using the lithium-ion technology they possess... Everybody wants that, but I had to have another steady business, before I gave you that... So, if this catches on, ENS will make you money in the future, not just now... I want you to think of this as what's known as a "call option" on lithium... In other words, lithium-ion hybrids will also be ENS... but, meanwhile, so it's not all speculation and you lose your shirt... we've got the company's smaller, lead-acid batteries making us money right now.

I should add, ENS has done a great job of passing higher costs on to the consumer. The other battery guys haven't been able to. 80% of their commodity costs they passed on... where one, the company, where lead makes 25-40% of the cost of goods. Who ever thought that lead would go up in value. The reason why we used to use lead is because it went down in value every year.

Now this one was up big, ever since it pre-announced a beat of 4 cents better-than-expected quarter. All the speculative stuff never does that, right... Full results are coming... not for another month. It also provided guidance for next quarter that was 8 cents above the consensus estimate.

So, why do it today?... Why did I feature it today?... I've been waiting and waiting and waiting for a downtick... Today, it's down enormously, courtesy of a downgrade today by Merriman, a brokerage house. I think it's the great buying opportunity that we've been waiting for... Thank you Merriman for the entry point!
 

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