New Energy Systems is a Bargain

New Energy Systems (NEWN) looks very cheap at current levels. Here are some numbers from the recent presentation as filed with the SEC:

• FY 2009 guidance is $23-25m revenue and $5.3-6.0m net income
  
• FY 2010 revenue guidance is at least $89.1m (+271%)
  
• FY 2010 income guidance is at least $15.6m (+173%)
  
• Organic growth projected (incl. acquisitions) is net $11.7m -> $15.6m (33%) year-over-year
  
  
• Shares outstanding (fully diluted): 12.6 million
  
• current P/E '10e (PPS $8.25): 6.66
  
• P/E/G '10e: 0.2

2010 Objectives:

• improve sales and profitability
  
• maximize synergies (cross-selling opportunities)
  
• expand international focus

If successful there is likely upside to 2010 guidance as company guided only for 6.25% revenue growth for core NEWN pre-acquisitions (that's where the "at least" comes in)

More Objectives:

• significantly increase awareness in investment community
  
• uplist stock to a national exchange in 2010

Now here's where the big opportunity lies (besides the current low valuation). There aren't that many profitable battery companies listed on Nasdaq/Amex (that was an understatement) and an uplisting will not stay under the radar in this industry, at least not for long.

Here are some valuation scenarios:

P/E of 10 / 15 / 20: $12.40 | $18.57 | $24.77
P/E/G of 0.5 / 0.75 / 1.0: $20.63 | $30.95 | $41.26

Investor Presentation: http://www.sec.gov/Archives/edgar/data/1144320/000121390010000035/f8k111609ex99i_newenergy.htm