ORLANDO, Fla., June 2, 2008 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies Inc., has initiated coverage on Quantum Fuel Systems Technologies World, Inc. (Nasdaq:QTWW), a company developing and producing advanced propulsion systems, energy storage technologies, and alternative fuel vehicles, such as the new Fisker Karma plug-in hybrid electric vehicle.
Harry Russell, MBA, RedChip Research Analyst, reported:
"Quantum has made several solid decisions as of late in light of oil prices, the economy, and the government's stance on alternative energy. By shedding its financially cumbersome Tecstar business unit and concentrating on environmentally friendly business units that work symbiotically, the Company is poised for revenue growth, margin expansion, and various economies of scale. In addition, it has strong relationships with large players carrying financial, technological, and political acumen, the most notably of which is General Motors (GM)."
"Quantum has taken a core business of selling propulsion systems to GM and is now developing hybrid vehicles using its affiliate's batteries, design acumen and expertise, and photovoltaic solutions. By so doing, Quantum has generated several large contracts which could be expanded and prove wildly lucrative, while at the same time reducing its exposure to traditional fuel-driven businesses," Russell continued.
"With rapid revenue growth and higher gross margins expected to lead to sustainable bottom-line profits by 2010, this transition window provides a timely investment opportunity. We recommend accumulation of shares and rate QTWW a 'Speculative Buy' with a 12-month price target of $4.00," he concluded.
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Disclosure
Neither RedChip Companies nor the analyst has received any compensation from Quantum Fuel Systems Technologies Worldwide, Inc. (QTWW) or any other party for the writing and preparation of this equity research report. The analyst(s) contributing to this report do not hold any shares of the subject securities. This report is based on data obtained from sources we believe to be reliable but is not guaranteed as to accuracy and does not purport to be complete. Neither the information nor any opinion expressed constitutes an offer, or an invitation to make or garner an offer, to buy or sell any securities or any options, futures or other derivatives related to such securities.
The subject security is currently engaged by RedChip Companies' investor relations division to provide investor awareness services, which is in no way related to RedChip Companies' Independent Research division. QTWW agreed to pay RedChip Companies, Inc., a fee of $15,000 in cash per month for these investor relations services only.