How can EEStor be valued at $1.5 billion?
We've long given up on waiting for announcements from EEStor (and, to a lesser degree, their partner ZENN) to come true. But, with the latest move by ZENN to drop their plans to launch the cityZENN high-speed electric car and will instead focus on becoming a supplier of ZENNergy Drive electric vehicle drivetrain components – ZENN's low-speed vehicles (pictured) have also been curtailed – the reality is that ZENN and EEStor are tied at the hip. As our friend Darryl Siry writes over at Autopia points out, the bond between these two companies means that speculative investors have raised EEStor's value to more than $1.5 billion. That's a huge chunk of change for a company that hasn't allowed independent media verification of its claims for the ultracapacitor technology that supposedly can move an electric car 300 miles on a charge and recharges quickly. Head on over to Autopia to see how ZENN's stock price is driving up the value of EEStor, but isn't shining a light on what is actually happening over there.
[Source: Autopia]
Reader Comments (Page 1 of 1)
Turbofrog 11:13AM (10/22/2009)
It's a funny situation, because assuming that their ultracapacitors actually do everything that they say they will, $1.5B sounds like undervaluing; they would quickly become the storage medium of choice for nearly anything electrical.
However, since they're presently vapourware, they could also be essentially valueless except as a better supplier of industrial capacitors. Go figure.
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why not the LS2LS7? 11:57AM (10/22/2009)
Ultracapacitors don't store their charge for very long. Even if you don't use it, it'll lose (say) 20% of its charge in a week. For example, the makers if the 5.11 tac flashlight that uses ultracapacitors says it loses 50% of its charge in a month.
No previous electricity storage systems has proved to be the single best answer for all problems, there's no reason to think ultracapacitors will do so either.
Turbofrog 1:23PM (10/22/2009)
EEStor claims a self-discharge rate of 0.1% per month. >250 Wh/kg energy density,
why not the LS2LS7? 3:57AM (10/23/2009)
EEStor claims a lot of things.
Turbofrog 9:57AM (10/23/2009)
Yeah, for some reason, most of that post got chopped off.
Basically, I was saying that if even half of their claims are true, EEStor is better than any and all current available electrical storage media. Hence the need for a healthy dose of skepticism.
Fred Miller 11:24AM (10/22/2009)
Sebastian:
You should have stuck with your assertion on the EVcast.com, that is, "there should be a boycott on writing about eestor until they come out with something tangible." Maybe, you should go the other direction and make a visit to eestor headquarters in cedar park, TX. You could break the news of whether they are a fraud or real.
Fred
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rt 11:45AM (10/22/2009)
It's claimed $1.5B value for Eestor is an implied value based on ZMC's stock price, and their 10.7% equity stake in Eestor. It's a subjective valuation though, as ZMC's value is potentiall not only based on the Eestor equity, but also on their exclusive license with Eestor. So if you say ZMC's value is 50% Eestor equity and 50% Eestor license, that puts a value of $750M on Eestor.
Yes, ZMC's stock price is totally speculative in any case. They're worth $0 if Eestor fails, and the sky is the limit if Eestor succeeds. Simply put, that's where their value comes from. So even if you do think Eestor is being valued at $1.5B - put it in the context of their potential value of $250B or maybe much more IF they have what they claim they have.
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Chris H. 2:41PM (10/22/2009)
So, EEStor's value is based on ZENN's highly speculative market cap, and ZENN's highly speculative market cap is based on EEStor's potential vaporware... Great! Where can I buy stock?
ZENN's market cap has been a mystery to me ever since I first became aware of the company, 2 or 3 years ago. $165 million market cap for a company who's total revenues (revenues, not profit...), in its entire history, have not cumulatively passed $10 million. Add to that the fact that ZENN has never made a profit, and well, it starts to sound like another Canadian company called Bre-X. Wonder what ever happened to those guys...?
Serge 12:09PM (10/22/2009)
A would like to join in the request to ignore the so called EEStor/Zenn "news." Those who are paying attention have seen the same old sorry story repeated year after year. Those who need their daily dose of b@#$@#$ can head over to eestory. Thanks!
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polo 2:25PM (10/22/2009)
If we're going to start requesting news be filtered to conform to own opinions and prejudices can ABG also ignore any stories that refer to the hydrogen hoax?
Serge 3:01PM (10/22/2009)
polo, for the record, I'm requesting that "news" are filtered, not news ;) If EEStor successfully demonstrates their capacitor -- I want to know about. Same thing if Toyota starts selling Toyota FCHV-adv at shockingly low prices. Same old perpetual "news", no thanks!
Chris 3:56AM (10/23/2009)
Polo: At least auto makers have WORKING models of HYDROGEN vehicles that are being actively tested. By your logic, we should also ban every single news story about all of these magic battery powered vehicles that were supposedly to be released by now. If that was the case, there wouldn't be any news.
Oh4Sh0 4:19PM (10/22/2009)
At this point, I think it's a load a of bs. However, rather than boycotting, journalism outfits should be trying to uncover it as a fraud. It would be great if it wasn't, but they've missed date after date after date and have shown no proof to the outside world at this point they have anything. Pump and dump.
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Serge 12:57AM (10/23/2009)
Journalists are getting lazier and bloggers aren't even journalists ;) Common journalistic actions: post/ignore PR, post silly stuff on Fridasy, occasionally post a really good reasonable researched article.
Matt 3:27PM (10/22/2009)
Man, all they (ZEstore) have to do is wait for their stock to top out, sell their shares and head to the beach. It's a wonderful plan. Hey, now that I think about it, I actually do have a cold fusion machine and it really does work. I'm thinking about going public; anybody want in on the ground floor? Oh, but you can't see it yet... gotta wait until the time is right.
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Dan Frederiksen 10:52PM (10/22/2009)
I would love for it to be real even though it would mean they have handled themselves extremely oddly until disclosure. but the signs of fraud are so great that I don't think it has any chance of being real.
the deadlines have slipped by years now. promises of production units have been made several times and rat face Ian Clifford has even lied about the slipping deadlines no matter how obvious. and they keep making new promises and they keep breaking them. wasn't public disclosure hinted for september... alleged leaked audio recordings...
The device will be verified working by independent lab but we may or may not make it public.. I'm guessing you wont since the date has come and gone.
but it boggles the mind, and maybe that's intentional, because they have credibility from the investors (although big money people wouldn't lie or do anything unethical..) and even the deal with lockheed to use the technology. and of course Ian the rat with his company as their spokes person.
It's so elaborate and so shameless that it's hard to think it is a fraud but apparently, by many examples in the past, there are people of such depravity in this world as to do even something like this.
I don't think there is a chance it could be real at this point (I think I wrote them off in summer 08) but I hope to be wrong, even though they are all super assholes either way.
You could make the point that simply because their worth would be nearly unlimited if it was publically verified and thus could speed up income and development by many factors, that that in itself is certain evidence of the fraud.
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y_ppo 7:10PM (10/24/2009)
Is Zenn committing Fraud?
http://www.gm-volt.com/forum/showthread.php?p=31023#post31023
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hfletcher 2:42PM (10/23/2009)
you troll, Y-poo.
all you do is ask the same question, as though you are 12 years old.
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