Knobias Clip Report (9-18-2007)

Sumbmited From Knobias ClipReport

ASTI: Shares Spike on Agreement with Hydro Building Systems

Tuesday , September 18, 2007 17:26ET

Obviously the largest news announcement of the day was the Fed’s surprising decision. With many and the market pricing in a 25 basis point cut in their overnight rate, the 50 point cut caught many off guard causing the Dow to spike following the announcement to gain over 336 points on the day.

“Today's action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time,” said the Fed Committee in its statement.

The question now becomes; what does the Fed know that we don’t? The market had priced in a 25 basis point decline. The chances for a 50 basis point were pretty remote. Also, the 50 point cut seems almost in desperation and emergency, but if that were the case, why not have an emergency meeting? In either event, the cut was necessary to clean up some of the mess created by rates being so low for so long and to stop the seizing up of the money supply.

In the small cap space, a solar name reported some news that stole the attention of traders from the Fed’s decision. Ascent Solar Technologies, Inc. (ASTI) and Hydro Building Systems, a division of Norsk Hydro (NHY), are planning the development of a new Brise Soleil product line incorporating thin film flexible solar modules manufactured by Ascent Solar. A variety of designs and prototypes for the new product line are planned to be introduced to the market in November 2007.

Hydro Building Systems will use the BATIMAT exhibition in Paris to display these innovate BIPV solutions to the commercial construction industry. The BATIMAT exhibition is the premier European venue for the construction and building industry. The event will take place from November 5 to November 11, 2007.

Brise Soleil and other shading devices are a way of controlling solar gain to a building. Overhangs or louvers mounted externally to buildings reduce the direct radiation from the sun to keep buildings cool. Shading devices including the enhanced performance provided by solar photovoltaics, give opportunities to limit overheating in buildings, reducing the need for energy hungry air conditioning systems, and simultaneously convert the suns energy into electricity to provide power to the building.

On the news, shares gained some 33% on over 2.36 million shares traded. The announcement could give the photovoltaic segment more credibility though many think the technology is still a few years away to become economically feasible.

Ascent Solar Business Development Vice President Joseph McCabe stated in the press release, “Ascent Solar is opening many new opportunities for solar applications when compared to more traditional roof-top or solar farm installations. BIPV products become integral part of the building structure rather than an additional bolt-on attachment. This not only reduces the installation cost but provides additional surface area to generate more power. The beauty in the flexible thin film materials is that we can address both the traditional PV market applications and create entirely new markets where traditional rigid frame PV cannot even play.”

The Company has only trailing twelve month revenues in the $400 thousand range, but the business that could be generated following the agreement with Hydro Building Systems could be substantial. The speculative nature could be alarming but might not be when one considers the fact that the Company has recently presented at the Think Equity Conference and the Merriman Curhan Ford Conference which could be the reason for some of the heavy buying. In either event, investors would be wise to watch.



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