EnSync Inc (NYSEMKT:ESNC)’s Tower Reversal

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A power white candle marked the end Monday of battery and energy management company EnSync Inc (NYSEMKT:ESNC)’s  stock price correction.

The stock surged a solid 30.28% to end the day at $0.86 with 1.47 million shares changing hands.

Technically, Monday’s huge white candle also indicated a tower reversal of the downtrend that has been plaguing EnSync since October 14. The accompanying high volume adds credibility to the pattern.

EnSync is a Milwaukee headquartered global corporation providing power control, energy storage and energy management solutions, particularly to “energy-challenged environments.” It added power purchase agreements (PPA’s) to its business in 2015. It was previously known as ZBB Energy.

EnSync Inc (NYSEMKT:ESNC) during the fiscal fourth quarter

Ensync declared EPS of $-0.12 which missed by $0.04, and revenue of $1.3 million which beat by $1.1 million but was up 319.4% year on year.

During the quarter it sold multiple power purchase agreements (PPAs) from its Tranche 1 to AEP OnSite Partners, a subsidiary of American Electric Power. Revenue from these will be recognized in FQ1 of 2017.

“The sale of these projects completes the disposition of seven of our eight projects from our initial tranche, said Brad Hansen, President and Chief Executive Officer. “We are now focused on working with our Hawaii subsidiary, Holu Energy, to drive the execution of our second tranche of projects, and the effort has already yielded four projects, that combined with our remaining Tranche 1 project have estimated future sales value of more than $5 million.”

Hansen also said that, to the best of its knowledge, it was the only company to have completed the full cycle of the PPA business model for behind the meter, commercial and industrial solar plus energy storage projects.

EnSync Inc (NYSEMKT:ESNC) to report a strong FQ1 2017 quarter

The revenue of $7.1 million from the July sale of PPAs will be accounted in FQ1 2017, and together with revenue from other projects, this could be a record quarter for the company.

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