LMCO and RMGX

GREEN is hot!  Everyone from Obama to the simple homeowner has the opportunity to go green in the current world we live in:  Wind, Solar, Biofuels….all offer an alternative to our current energy crisis.

What could be better than helping to save the environment while having a good chance of making money at the same time? Why blindly just give to environmental charities when you can be proactive by investing in companies whose products and services have a direct effect on the health of the environment for everyone?  The environment is a hot topic, as it should be, as we only have one and it needs to be treated with care.  Fortunately, there are a multitude of so-called “green” companies who endeavor to do good while making profits.  I have unearthed two of these little gems that I believe have much upside potential.

DPOLLUTION INTL INC  (BB:RMGX) This company manufactures and distributes patented fuel conditioning devices for improving combustion efficiency and lower pollution emissions of a gas or diesel engine. Formerly known as Dpollution Inc., the company changed its name to DPOLLUTION International Inc. in July, 2010.  At the end of last year, the company announced that its fuel reconditioning device has been proven to “crack” longer chain Hydrocarbons into shorter molecules.  This cracking allows the fuel to burn more efficiently and completely.   Basically, this product is supposed to make cars and other vehicles run cleaner.

Technically, price has dropped down to $0.24 after hitting resistance at 40 cents per share.  It has since found support in the 24 cent area where it appears to be building a base.  The other indicators are giving some support to the notion the stock could stage a turnaround.

Next on the list of companies doing good things for the environment is Li-ion Motors Corp (OB:LMCO), a development-stage technology company engaged in the design and engineering of emission-free automotive propulsion systems utilizing the lithium battery technology in the United States, Europe and the Middle East. The company sells electric, lithium powered and converted vehicles. Its product line includes cars, motor cycles, mopeds, and power sport vehicles. Formerly known as EV Innovations Inc., the company changed its name to Li-ion Motors Corp. in February 2010.  Basically its claim to fame is lithium batteries for electric transportation.

The company is making great strides in getting its product into the hands of corporations and consumers alike.  The BIG NEWS for the company was its impressive win in last year’s X-Prize competition.  Here is the headline:

LI-ION MOTORS CORP WINS $2.5M IN THE PROGRESSIVE INSURANCE AUTOMOTIVE X PRIZE COMPETITION

This is a huge validation of their technology and a base to build on.  The question is, “Can the company build on this”.  Don’t expect LMCO to challenge GM and Toyota for the lead in EV cars.  LMCO is undercapitalized and are very far away from achieving any kind of sustainable production.  However…they are in for the fight.

Technically, shares have dropped below the 200-day moving average at $1.02, but might find support at the 50-day MA line of $0.91  The indicators are going against the stock right now, so I would keep this on your radar right now.  It is a heavily promoted stock and has been known to make some big one and two-day moves.

Just like with any micro-cap company, be sure to use caution when investing.  Anything can and does happen with these little dynamos!

Good Luck and Great Trading,

Jeffrey Dean

Disclosure: No Positions

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Disclaimer

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the RMGX; nor have they received compensation of any kind RMGX.  LMCO was a compensated pick under several previous expired agreements.  It is not currently under any contract with Investor Soup. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.