The Energy Report
Ron Struthers of Struthers’ Resource Stock Report looks at two small-cap companies that have announced major developments.
Markets continue to rally and the S&P 500 closed at 2,737 yesterday, well into my resistance area. I expect a pullback or correction soon, as it is highly unlikely the market could punch through this resistance, especially on its first attempt. That said, anything is possible these days.
Huge news with Greenbriar this morning, time to back up the truck
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Greenbriar Capital Corp. (GRB:TSX.V; GEBRF:OTC) Recent Price CA$0.87
Entry Price – $1.15 Opinion Strong Buy to $1.20
The reason we first bought this stock was a belief that Puerto Rico in its condition would have to build the Montalva projectit made no sense to do otherwise. Today we got the first news that it is going to happen.
Greenbriar announced that the Puerto Rico Electric Power Authority (PREPA) has communicated to Greenbriar, through Luis Baco that it wants to re-open negotiations to move forward the Montalva Project, the company’s 100 MW solar/30MW battery powered energy project.
The shovel-ready project, when built out, will be the largest renewable energy project in the Caribbean. Generating 100% renewable energy, the project will greatly reduce emissions on the island and will save PREPA customers between $1 and $2 billion in energy savings over the 25- to 35-year lifespan of the project. In addition, it will add 900 direct jobs during the construction phase and over 1,000 indirect jobs will be created for suppliers, transport, accommodations, etc. The $305 million project will be located in, and provide substantially to the tax base of, the municipalities of Guanica and Lajas.
Jeff Ciachurski, CEO of Greenbriar states, “We have always believed this is a world class project, and we look forward to working with PREPA to getting it done. It will give PREPA what it needs most affordable, safe and reliable clean energy for the citizens of Puerto Rico.”
As a reminder, this project will generate over US$50 million in annual revenue to GRB. The market cap of GRB is about C$20 million with the stock at $1.00. Ridiculously cheap and don’t forget the huge progress Greenbriar has made with RealBloq.io, that went live a few days ago.
GRB’s RealBloq.io platform is now live and collecting revenue from branches of Title Security and Landmark Title. Rollout to additional branches will occur over the coming weeks, and many additional title companies are in negotiations to come on-line in short order. RealBlock provides a secure platform to communicate wire instructions with real estate buyers, sellers and other designated stakeholders during the closing process. RealBlock is setting a goal of 60,000 transactions per month (US$14 million) annualized by February, 2020. This goal will not be linear, but rather weighted toward the 12-month period. The company will provide guidance updates accordingly on this forecast.
Tommy Sullivan, CEO of Title Security, stated: “Our escrow officers are very excited about the technology. As wire fraud incidents continue to escalate, the need to secure the exchange of documents and communications between buyers, sellers and others involved in real estate transactions are more crucial than ever. It’s often the biggest financial transaction of their lives, and we want to do everything we can to ensure it works as it should. RealBloq is the new standard of care in the title industry.”
The stock is at a strong support level, a triple bottom, so downside looks small. One might not be able to buy at this level because it may open strong on the news, so I have it at a strong buy to $1.20.
Very rare to have two back up the truck stocks on the same day, but here it is.
Smartcool Systems Inc. (SSC:TSX.V; SSCFF:OTC; R3W:FSE) Recent Price – CA$0.05
Entry Price $0.04 Opinion Strong Buy
Yesterday, Smartcool announced successfully completed installations of its proprietary air-conditioning and heat pump optimization technology for Knight Frank LLP on two large office buildings in the UK, one in London and one in Bristol, with measured results of over 20% energy savings.
Ted Konyi, CEO Smartcool Systems commented, “Working with Knight Frank has been a great experience. They clearly are committed to playing a significant role in assisting their clients in reducing their carbon footprint through various energy efficiency measures. We have managed to demonstrate significant energy reduction with the two initial projects and have now surveyed an additional 18 buildings on Knight Frank’s recommendation. The opportunity for further collaboration in the UK and elsewhere in Knight Frank’s world could generate tremendous benefits for both the clients and the environment. We are looking forward to continuing to expand our relationship with Knight Frank and their clients.”
David Goatman, Partner and Head of Energy and Sustainability at Knight Frank LLP said, “As one of the leading asset managers of real estate assets in the world we are constantly looking for new ways to improve the resource efficiency of our client’s buildings. Smartcool is a very impressive technology and one that we have one installed now in two large UK assets, it is an example of the way in which we seek to utilize best in class technologies to drive positive sustainability outcomes for our assets. I look forward to continuing to collaborate with Smartcool and to extend the roll-out of the technology across many more of our assets under management.”
I made sure the Knight Frank comment from the news release was in this update because this is going to be an enormous deal for SSC. Below you can get a grasp how large it is.
About Knight Frank LLP
“Knight Frank LLP is the largest privately owned real estate consultancy in the world, headquartered in London, the firm has over 500 offices in 60 countries around the globe. In the past 12 months, Knight Frank has valued land and buildings valued at circa $1,500 billion, completed property transactions valued at over $100 billion, and we currently manage approx. 750 million square feet of real estate around the world.
“At Knight Frank we build long-term relationships, which allow us to provide personalized, clear and considered advice on all areas of property in all key markets. Operating in locations where our clients need us to be, we provide a worldwide service that is locally expert and globally informed. We believe that inspired teams provide excellent and dedicated client service. Therefore, we have created a workplace where opinions are respected, where everyone is invited to contribute to the success of our business, and where they are rewarded for excellence.”
It is obvious that this is going to lead to many more installs of SSC’s technology. SSC announced that 4th quarter sales exceeded $2.4 million, which was a record quarter for the company. I believe this is just the beginning as SSC’s technology is gaining critical mass and acceptance. Soon, if not now, it will no longer need trial locations, it will simply be installed.
On the chart, we have strong support at 4 cents and a wedge formation developing. I am expecting the break out of this wedge to the upside.
Ron Struthers founded Struthers’ Resource Stock Report 23 years ago. The report covers senior and junior companies with ample trading liquidity. He started his Millennium Index of dividend stocks in 2003 – $1,000 invested then was worth over $4,000 end of 2014 and the index returned 26.8% in 2016. He retired from IBM after 30 years in customer service, systems and business analyst, also developing his own charting software. He has expertise in junior start-ups and was a co-founder of Paramount Gold and Silver.
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1) Ron Struthers: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Greenbriar Capital and Smartcool Systems. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company currently has a financial relationship with the following companies mentioned in this article: Greenbriar Capital and Smartcool Systems are advertisers at playstocks.net. Additional disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
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( Companies Mentioned: GRB:TSX.V; GEBRF:OTC,
SSC:TSX.V; SSCFF:OTC; R3W:FSE,