Clearsign a clear winner
Company Overview
ClearSign Technologies Corporation designs and develops products and technologies for the purpose of improving key performance characteristics of industrial and commercial systems, including operational performance, energy efficiency, emission reduction, safety and overall cost-effectiveness. Our patented technologies, embedded in established OEM products as ClearSign Core™, and ClearSign Eye™ and other sensing configurations, enhance the performance of combustion systems and fuel safety systems in a broad range of markets, including the energy (upstream oil production and down-stream refining), commercial/industrial boiler, chemical, petrochemical, transport and power industries.
The key takeaway from this is actually emission reduction. You are all aware of California and it's abhorrence of emissions, and where California is treading the rest of the world is following. China is on a big push to reduce emisions and improve air quality, Europe is also on that same push. Electrictrification of cars gets a lot of the attention here , Hydrogen and green fuels also get a lot of the headlines but quietly working away doing their thing is Clearsign.
Are Clearsign part of the green revolution? Yes they are.
Do they have a CEO that likes to shout about it? No they don't. Part of the reason I like the company.
Let's get into some financials...I am not a broker or economics person so I will keep this short.
They don't have any income, this is part of the reason I believe they are undervalued. The last time I posted about this company on Reddit the only comment was 'I wouldn't invest in this because Yahoo says it has no income'. Yet the stock is up 100% since then so what is going on.
Well their main product is a replacement burner, it has taken a long time to refine/test this burner and they have developed relationships with major companies that are coming to fruition now. It achieves industry leading NOX levels <2.5ppm, they have spent the last three years working with Exxon at their test facility in Seattle going through some of the most rigorous testing with a view to Exxon rolling it out across California and the rest of the states. Their burner can be used for process, refining etc
This resulted in an order from Exxon for one burner and my presumption is that it is the first of many.
Shortly after this Exxon order came about another order was announced from an unnamed European super major to be installed in Europe. It seems obvious to me that others are watching this test with Exxon and are ready to follow suit. Most companies try to treat the emissions afterward... like putting a filter on your chimney, Clearsign changes the way the burn happens and achieves lower nox levels from the getgo. Not only is this abetter way of doing things, it is actually a lot cheaper, retrofits are reasonably straighforward and the costs are considerably less. Why wouldn't people want it?
They have a partnership deal with California burner for sales and have just stated that there is a market of 7000 burners in California alone that they are targeting. .....and that is before I get to CHina!
In line with the company's commercialization plans for its fire tube boiler burner products in China, the product type testing application was successfully submitted and accepted by the Chinese government burner testing authorities. Acceptance of ClearSign's formal application was required before the government agreed to proceed and schedule formal 'on-site' commercial burner product testing for safety, performance and to verify that the burner is in compliance with the Chinese regulations. The formal testing was recently completed by government representatives and the full application was then submitted for review by the Chinese authorities. The company hopes to get a formal response by the end of the second quarter.
The company is also pursuing a strategic sales channel and alliance through a CFA with China's top tier boiler company Jiangsu Shuang Liang Boiler Co. Ltd, a subsidiary of China's Shuang Liang Group Co. Ltd, which is one of China's top 500 enterprises. Shuang Liang Boiler Company has the largest market share and ranks as China's number one boiler manufacturer in the industrial boiler, district heating boiler, and commercial and institutional boiler markets, with over 700 active sales personnel and sales offices strategically located throughout China. The company has been developing a relationship with Shuang Liang Boiler company now for some time, leading to their participation in the formal burner the testing process.
So where do I see the share price going .... up of course! I don't believe that very much of their future sales potential has been factored into the price, I think that in 12 months time this will be +100% again as the sales will have started to appear as revenue and several more contracts will have been announced in China for various heating districts there. The European major will have been named, there will be probably be more large players added to the list of customers and it will be impossible to ignore the fact that revenue is going to increase dramatically in the coming years from it's very very low base at the moment.
I will leave you with the overview from their most recent press statement. I picked up more shares at 4.7 last week, (there may be another dip below 5) and Clearsign is now my 2nd biggest position. This is not financial advice, please do your own DD and GLTA in these volatile times. I should mention that HC Wainright have a target of 10 bucks but I am not sure I think much of Wainright predictions however they are the only analyst covering it at the moment. I think when it holds about 5 bucks it will probably get more coverage.
Recent strategic and operational highlights during and subsequent to the fourth quarter and full year 2020 include:
Successfully Installed a Multi-Unit Process Burner Order for Major Energy Infrastructure Company: The installation is made up of three burners in an existing process heater at a California storage and transportation terminal. The burners were sold by ClearSign's channel affiliate, California Boiler, who were a subcontractor to the overall project management company, R. A. Nichols Engineering.
Completed the Performance Testing and Application for Firetube Boiler Burner Certification in China and Signed a Collaboration Framework Agreement (CFA) with Jiangsu Shuang Liang Boiler Co. Ltd: The Company completed the government performance testing required for their 2-ton fire tube boiler burner to be sold in the Chinese market. The performance testing results have been submitted along with the required documentation for certification in China. Assuming the certification is granted, the Company can then produce, market and sell the burners in the Chinese market. Additionally, the Company signed a non-binding CFA agreement with Jiangsu Shuang Liang Boiler Co. Ltd to provide a next generation ultra-low emission, and high efficiency integrated boiler burner package for the Chinese market.
Entered into an Agreement with California Boiler for Sale and Installation of 2.5 ppm NOx Capable Ultra-Low Emission Boiler Burners and Low Emission Flares: The agreement is for the sale and installation of "ClearSign Core™" enabled ultra-low NOx combustion equipment into the U.S. market. Both companies will be responsible for sales, California Boiler will be responsible for installation and the provision of controls, and ClearSign will provide the technology and product design.
Received Process Burner Order from Super Major Global Refinery for European Installation: The order, from a global refining company, is to design, fabricate and supply the Company's ClearSign Core process burner for installation in a European refinery. This is the first purchase from this customer and the second super major customer for the Company.
Target price is 6.25 dollars short term which is a 20% gain and longer term target is 100% or 10.4
ClearSign Technologies Corporation designs and develops products and technologies for the purpose of improving key performance characteristics of industrial and commercial systems, including operational performance, energy efficiency, emission reduction, safety and overall cost-effectiveness. Our patented technologies, embedded in established OEM products as ClearSign Core™, and ClearSign Eye™ and other sensing configurations, enhance the performance of combustion systems and fuel safety systems in a broad range of markets, including the energy (upstream oil production and down-stream refining), commercial/industrial boiler, chemical, petrochemical, transport and power industries.
The key takeaway from this is actually emission reduction. You are all aware of California and it's abhorrence of emissions, and where California is treading the rest of the world is following. China is on a big push to reduce emisions and improve air quality, Europe is also on that same push. Electrictrification of cars gets a lot of the attention here , Hydrogen and green fuels also get a lot of the headlines but quietly working away doing their thing is Clearsign.
Are Clearsign part of the green revolution? Yes they are.
Do they have a CEO that likes to shout about it? No they don't. Part of the reason I like the company.
Let's get into some financials...I am not a broker or economics person so I will keep this short.
They don't have any income, this is part of the reason I believe they are undervalued. The last time I posted about this company on Reddit the only comment was 'I wouldn't invest in this because Yahoo says it has no income'. Yet the stock is up 100% since then so what is going on.
Well their main product is a replacement burner, it has taken a long time to refine/test this burner and they have developed relationships with major companies that are coming to fruition now. It achieves industry leading NOX levels <2.5ppm, they have spent the last three years working with Exxon at their test facility in Seattle going through some of the most rigorous testing with a view to Exxon rolling it out across California and the rest of the states. Their burner can be used for process, refining etc
This resulted in an order from Exxon for one burner and my presumption is that it is the first of many.
Shortly after this Exxon order came about another order was announced from an unnamed European super major to be installed in Europe. It seems obvious to me that others are watching this test with Exxon and are ready to follow suit. Most companies try to treat the emissions afterward... like putting a filter on your chimney, Clearsign changes the way the burn happens and achieves lower nox levels from the getgo. Not only is this abetter way of doing things, it is actually a lot cheaper, retrofits are reasonably straighforward and the costs are considerably less. Why wouldn't people want it?
They have a partnership deal with California burner for sales and have just stated that there is a market of 7000 burners in California alone that they are targeting. .....and that is before I get to CHina!
In line with the company's commercialization plans for its fire tube boiler burner products in China, the product type testing application was successfully submitted and accepted by the Chinese government burner testing authorities. Acceptance of ClearSign's formal application was required before the government agreed to proceed and schedule formal 'on-site' commercial burner product testing for safety, performance and to verify that the burner is in compliance with the Chinese regulations. The formal testing was recently completed by government representatives and the full application was then submitted for review by the Chinese authorities. The company hopes to get a formal response by the end of the second quarter.
The company is also pursuing a strategic sales channel and alliance through a CFA with China's top tier boiler company Jiangsu Shuang Liang Boiler Co. Ltd, a subsidiary of China's Shuang Liang Group Co. Ltd, which is one of China's top 500 enterprises. Shuang Liang Boiler Company has the largest market share and ranks as China's number one boiler manufacturer in the industrial boiler, district heating boiler, and commercial and institutional boiler markets, with over 700 active sales personnel and sales offices strategically located throughout China. The company has been developing a relationship with Shuang Liang Boiler company now for some time, leading to their participation in the formal burner the testing process.
So where do I see the share price going .... up of course! I don't believe that very much of their future sales potential has been factored into the price, I think that in 12 months time this will be +100% again as the sales will have started to appear as revenue and several more contracts will have been announced in China for various heating districts there. The European major will have been named, there will be probably be more large players added to the list of customers and it will be impossible to ignore the fact that revenue is going to increase dramatically in the coming years from it's very very low base at the moment.
I will leave you with the overview from their most recent press statement. I picked up more shares at 4.7 last week, (there may be another dip below 5) and Clearsign is now my 2nd biggest position. This is not financial advice, please do your own DD and GLTA in these volatile times. I should mention that HC Wainright have a target of 10 bucks but I am not sure I think much of Wainright predictions however they are the only analyst covering it at the moment. I think when it holds about 5 bucks it will probably get more coverage.
Recent strategic and operational highlights during and subsequent to the fourth quarter and full year 2020 include:
Successfully Installed a Multi-Unit Process Burner Order for Major Energy Infrastructure Company: The installation is made up of three burners in an existing process heater at a California storage and transportation terminal. The burners were sold by ClearSign's channel affiliate, California Boiler, who were a subcontractor to the overall project management company, R. A. Nichols Engineering.
Completed the Performance Testing and Application for Firetube Boiler Burner Certification in China and Signed a Collaboration Framework Agreement (CFA) with Jiangsu Shuang Liang Boiler Co. Ltd: The Company completed the government performance testing required for their 2-ton fire tube boiler burner to be sold in the Chinese market. The performance testing results have been submitted along with the required documentation for certification in China. Assuming the certification is granted, the Company can then produce, market and sell the burners in the Chinese market. Additionally, the Company signed a non-binding CFA agreement with Jiangsu Shuang Liang Boiler Co. Ltd to provide a next generation ultra-low emission, and high efficiency integrated boiler burner package for the Chinese market.
Entered into an Agreement with California Boiler for Sale and Installation of 2.5 ppm NOx Capable Ultra-Low Emission Boiler Burners and Low Emission Flares: The agreement is for the sale and installation of "ClearSign Core™" enabled ultra-low NOx combustion equipment into the U.S. market. Both companies will be responsible for sales, California Boiler will be responsible for installation and the provision of controls, and ClearSign will provide the technology and product design.
Received Process Burner Order from Super Major Global Refinery for European Installation: The order, from a global refining company, is to design, fabricate and supply the Company's ClearSign Core process burner for installation in a European refinery. This is the first purchase from this customer and the second super major customer for the Company.
Target price is 6.25 dollars short term which is a 20% gain and longer term target is 100% or 10.4
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