3SOF

PWAC(otcbb) - Power Air Corp.

Mkt Cap:           93.28M
Float:                 34.31M

Profile:  Power Air Corporation, with head office in Livermore, California, is
engaged in the business of developing, manufacturing and marketing
fuel cell based commercial products. Power Air has the exclusive
worldwide license to zinc-air fuel cell ("ZAFC") technology that has
been developed at the Lawrence Livermore National Laboratory
("LLNL"), in Livermore, California, for numerous fields of use
(portable, stationary, light mobility and transportation
applications) and commercialization. While zinc-air technology has a
wide range of applications, the Company will focus on collaborating
with OEM's to replace battery and genset products.

website: http://www.poweraircorp.com/


The Idea

This is a photo of the zinc based fuel cell that PWAC is working towards marketing as Emergency Backup for home and small business at first... and later on to much bigger applications.  The key is to get revenue streaming in from this application to prove that it is a very viable technology.

(http://www.3stocksonfire.org/stockcharts/PWAC%2005-23-2006%20003.JPG)

• Lower cost components than conventional PEM fuel cells,
including cathode catalysts, and anode current collector.
• PAC's fuel is not compressed and is readily available; thereby
reducing distribution, storage and siting issues associated with
hydrogen.
• The low cost Portable Emergency Generator ("PEG") is suitable
for indoor use. It is a zero-emission, durable, light-weight fuel
cell that operates silently and effectively.
• PEG's can be quickly refueled by an exchange of electrolyte
and/or addition of zinc vs. the much slower electric recharge
required by batteries.
• PAC's fuel solution allows for continuous operation with the
possibility of refueling under load; the fuel reaction product,
electrolyte saturated with zinc oxide or zincate, can be recycled
for production of new fuel and fresh electrolyte.
• PEG's are environmentally friendly with no hazardous emissions.


To get this product to market as soon as possible the company is partnering with OEMs.

QuotePower Air Commences Demonstrations to Potential Partners
Tuesday April 18, 9:00 am ET
http://biz.yahoo.com/prnews/060418/nytu093.html?.v=45

[/b]
"By partnering with OEM's, Power Air will leverage existing product development, manufacturing, distribution, service and support infrastructures. This will allow Power Air to focus on cost reduction and improvement of the core ZAFC technology."

Funding does not seem to be a problem for this 7-month old company.

QuotePower Air Raises Additional $2 Million
Monday May 15, 8:30 am ET
http://biz.yahoo.com/prnews/060515/nem026.html?.v=48

"This injection of cash strengthens our position in negotiations with OEM and Zinc Partners by giving us the means to undertake our share of development and commercialization costs," states Mr. Steve Williams, President and CEO of Power Air.

Links:
Corporate Summary (http://www.poweraircorp.com/docs/pac_summary.pdf)[/url]
Company and Technology Overview (http://poweraircorp.com/docs/Intro-to-PAC.pdf)[/url]
10QSB 5/15 (http://biz.yahoo.com/e/060515/pwac.ob10qsb.html)[/url]

Charts

(http://www.3stocksonfire.org/stockcharts/PWAC%2005-23-2006%20001.JPG)

(http://www.3stocksonfire.org/stockcharts/PWAC%2005-23-2006%20002.JPG)


Trade Plan

PWAC has a hot technology on its hands and people are starting to notice according to the volume and price action this stock has seen.  It has held up amazingly well during the market downturn and now we have a breakout on our hands.  Volume is swelling and finally price has popped out of its triangle consolidation.

Support is close below with the 9,20, and 50 ma.. we plan to place out stop just under $2 and at this time our target is $3 for this play.  This sets us up for ~ 3:1 reward to risk ratio on this position.  We will modify stop and target data as the play unfolds.

The stock may gap tomorrow.. we would really like to have our position below 2.25.. but we will see what the market gives us as we are buying this stock for the 3SOF portfolio in the morning.

We will buy PWAC in the morning on 5/24

G.,

Looks like the challenge will be getting through the 2.48 high of the March 30 Black Candle that had heavy volume. 

PWAC is showing some nice technical strength in its MACD.  The histogram broke out of a Bullish Inverse H&S pattern in mid-May while the MACD itself was in the Head of its own Bullish Inverse H&S pattern. 

The MACD went on and put in a Right Shoulder, then broke out of that pattern to the upside yesterday, "mirroring" what the Histogram telegraphed. 

That looks "good to go" for a rally.  Good luck!

G.,

Steady upside follow-thru today.  Volume half way through the session already matches yesterday's, which was 8½ times the 100 day average.  I like seeing these good volume days, especially since we're inside that March 30 Black Candlestick resistance area (2.05-2.48), which was a heavy volume day.

I also like the fact that we filled the opening gap right away this morning.

Thanks for your work on Knick Knack PWAC, Give The Dog A Bone...this old Elf came rolling home.

;D  >:D

yea Melf PWAC is looking great.. I dont think that resistance area will prove much difficulty.. i generally erase that from my mind when I am looking at the chart.. lets see if that works out  ;)

Quote from: eliteG on May 24, 2006, 01:54:59 PM
yea Melf PWAC is looking great.

G.,

It sure is! 

My intraday charts show 2.50 as the high, which would be a takeout of the March 30 high of 2.48, but that might be a bad print.  My screen where it shows the trades says the high is 2.45.  At any rate, it looks great. 

Volume so far  is 11 times 100 Day average volume.  Now we want to see PWAC close well, and hold a good portion of today's gains.  Preferably ALL.   

;D

Quote
I dont think that resistance area will prove much difficulty.. i generally erase that from my mind when I am looking at the chart.. lets see if that works out  ;)

I generally sit here and chew on myself about it.   :D

Quote

Bought PWAC at 2.20.  Sold ½ at 2.43.  Gain: 10.45%.  Stop on the remaining ½ postion: 2.02, a penny below Monday's low of 2.03.  Risk: 8.2%.

Very nice day for PWAC, G.  Nice pick!  Applause.   

Nice pick up G in this awfully hard market. Keep it up

Quote from: Melf Elf on May 24, 2006, 09:05:20 AM
The MACD went on and put in a Right Shoulder, then broke out of that pattern to the upside yesterday, "mirroring" what the Histogram telegraphed. 

Alister,

If you're reading this thread...I know that you like MACD...check out that "mirrored" Bullish signal. first in the Histogram, then followed by the MACD Bullish Inverse H&S formation and breakout yesterday.  Nice bullish signal.

Quote
That looks "good to go" for a rally.  Good luck

Up 12% today.

Quote from: Melf Elf on May 24, 2006, 04:41:31 PM
 
Alister,

If you're reading this thread...I know that you like MACD...check out that "mirrored" Bullish signal. first in the Histogram, then followed by the MACD Bullish Inverse H&S formation and breakout yesterday.  Nice bullish signal.

How did you know that I like MACD?  :D ;D :D
....Actually you were right, MACD Lines & MACD Histogram turned out to be my favorite Trend Following system now, I've found it very useful & effective for entering & exiting trades along with moving averages ;)

I lke PWAC, weekly chart says BUY....
Great pick G, (applaud) ;)

Quote from: Terliso on May 24, 2006, 06:36:33 PM

How did you know that I like MACD?  :D ;D :D

Alister, Terlisa, Terliso,

Cuz we discussed it a cuppla times.   ;D  ;D  ;D

Listen.  I can't keep up with all of your name changes.  Are you having an identity crisis?

>:D  ;D  >:D

If you are...I have some more "identity" suggestions for ya.   >:D  ;D  >:D

E-Trials - internet Attorney
Sir Tale - Author of Stories About Chivalry
Stir Ale - Bartender
"El" Stair - Elevator Operator
Last Ire - Your Most Recent Stop Out, As A Trader
"La" Tries - Opera Singer
Saltier - Chef
E-Trails - Tried Everything On The Internet
It's Real - Your FINAL Identity

>:D  ;D  >:D

Applause for you nice chart.  You crack me up with your comments on some of them.

Quote from: Melf Elf on May 24, 2006, 07:05:29 PM
Listen.  I can't keep up with all of your name changes.  Are you having an identity crisis?

Crisis? .... Yeah, cuz' some people here calling me TERESA... what the heck!!

Quote from: Melf Elf on May 24, 2006, 07:05:29 PM

E-Trials - internet Attorney

Sir Tale - Author of Stories About Chivalry
Stir Ale - Bartender
"El" Stair - Elevator Operator
Last Ire - Your Most Recent Stop Out, As A Trader
"La" Tries - Opera Singer
Saltier - Chef
E-Trails - Tried Everything On The Internet
It's Real - Your FINAL Identity

E-Trials would be good... If someone calls me TERESA again I'll call my attorney  ;)  :D  ;D

Thank you G for bringing this one up.

It is nice to have something to the upside in this bloody market.

I entered at 2.19.  I got in my screen the 2.50 bid, then backed down. I thought something was not right, the market was selling off so I exited at 2.43 to protect the 11% profit. I thought it could create a false breakout of that 2.48resistance.

I am glad to see that, it stayed up there and kept the profits of the day. I might re-enter tomorrow.
Good luck to all of you holding,
rafael;)
(btw, i 've been sitting on cash since 2 fridays ago)

Glad you guys are enjoying this one.  ;)  Thx  8)


update PWAC:

Very nice move today on PWAC!  Up 12% on heavy volume and we got to buy in near the lows..  :o.  So today was the neon sign day for PWAC and we are expecting many traders/investors to start researching and buying in.  We'll talk exit strategies based on PWAC's performance tomorrow.

------
Position: bought PWAC @ 2.20 on 5/24/2006
Order: Hold
Exit: N/A
------

Be careful with this one.  Reading the company info it looks like the dozen of other developmental companies out there being pumped by newsletters.

The story sounds great.  but have an exit plan ready.

Look at OTD, XSNX, XTHN, RGUS etc........
http://finance.yahoo.com/q/cq?d=v1&s=xthn.ob%2c+xsnx.ob+otd%2c+rgus.ob

They are all very volatile - and you do not want to be left holding the bag.

BTW, good pick.  And I will say thank you to to the quick profit!

Quote from: snowcat on May 25, 2006, 10:40:46 AM
BTW, good pick.  And I will say thank you to to the quick profit!

Thx thats what we're here for  ;)

PWAC is finding support along its channel and may be ready to bounce higher.  8)

Ouch!
Hopefully it bounces back soon, this is where bought yesterday...if I had cash available, I'd pick up some here.

It is trading within the chanel now. But still with strong support underneath.

Re entered at 2.20

I thought the news about being traded in Frankfurt would have given a little boost to the stock.  What, are the Germans gonna short this stock?

PWAC got Pwacked. I'm out with a 1% loss. Yesterday's move rendered suspect by today's bearish engulfing candle.

Snowcat - I saw where you said you hoped Gharknes bought. I really hope not or we won't hear the end of it once he gets out of time-out!

Quote from: Melf Elf on May 24, 2006, 04:24:44 PM
Bought PWAC at 2.20.  Sold ½ at 2.43.  Gain: 10.45%.  Stop on the remaining ½ postion: 2.02, a penny below Monday's low of 2.03.  Risk: 8.2%.

Sold remaining ½ PWAC at 2.19.  Loss: 0.45%  Gain on the trade: 5%.

If a selloff had occurred over several days, I would stay with the 2.02 stop.  I don't like today's  Bearish Engulfing Candlestick.

A gain is a gain, though.  Thanks, G.!

Quote from: Lucas Scott on May 25, 2006, 03:51:33 PM
PWAC got Pwacked. I'm out with a 1% loss. Yesterday's move rendered suspect by today's bearish engulfing candle.

I am out too.  May rebound and for all those holding I hope it does.  But I am putting all my stocks on short leashes until I see a strong follow through rally day in the market like $SPX up by 1.7% or so in a day.

damn.

now gharknes has something else to complain about.

With the market so unpredictable,  there does not have to be a 3sof pick every day.........

Quote from: Terliso on May 24, 2006, 07:36:05 PM
Crisis? .... Yeah, cuz' some people here calling me TERESA... what the heck!!

E-Trials would be good... If someone calls me TERESA again I'll call my attorney  ;)  :D  ;D

E-Trials,

Oh-h-h, okay, thanks for explaining.  You can see why Melf Elf had difficulty understanding an identity crisis.   ;D

Now I'm curious about those dyslexics who call you TERESA.  ???

Quote from: Lucas Scott on May 25, 2006, 03:51:33 PM
Snowcat - I saw where you said you hoped Gharknes bought. I really hope not or we won't hear the end of it once he gets out of time-out!

Luke,

Rats!  Well, at least he'd be break even at the close.  Unless he waited and bought it at yesterday's high of 2.50 because he forgot to read eliteG's instructions.

???

Quote from: snowcat on May 25, 2006, 04:13:32 PM
damn.

now gharknes has something else to complain about.

snowcat,

Well, wait a minute here.  ghark could have sold some near yesterday's close for a 10% profit, like some of us did.  Let's be optimistic.  I'll bet he sold some, and has a BIG gain!

Or, is that one of the times when he goes shopping?  :(

hi guys,

I got to pull the trigger before the end of the bell at 2.18, It thought it would rebound and finish stronger. Still a good play, i just didn't like daily candle.  Still on the watch. Good luck tomorrow,

rafael 8)
------------
No open positions at the moment

I don't know if you guys follow David Randolph over at www.octbbcoverage.com but he is negative on PWAC.  Here's his analysis:

Fundamental Analysis

Profile:  Power Air Corporation (PWAC), with head office in Livermore, California, is engaged in the business of developing, manufacturing and marketing fuel cell based commercial products. Power Air has the exclusive worldwide license to zinc-air fuel cell technology that has been developed at the Department of Energy's Lawrence Livermore National Laboratory, in Livermore, California, for all fields of use (portable, stationary, light mobility and transportation applications) and commercialization.

For further information please call +1-925-960-8779 or visit our website at http://www.poweraircorp.com.

Latest 3 headlines:
Apr 03/06 - Power Air Signs Memorandum of Understanding for Tooling & Manufacturing in Midwest (PRN)

The company is preparing to ramp up for production of its exclusive patented Zinc Air Fuel Cell ("ZAFC").

Apr 18/06 - Power Air Commences Demonstrations to Potential Partners (PRN)

May 15/06 - Power Air Raises Additional $2 Million (PRN)

«"Power Air continues to meet the targets and milestones we established in 2005 and we are pleased that the market recognizes this," adds Don Prest, CFO of Power Air. "This private placement round was opened in April and response has been excellent."»

For an established company a private placement is usually a bad thing, because it is a sign the company isn't able to fund operations or investments through its activity. For a BDC it is usually seen as a positive, because it shows investors are willing to put money on an idea.

Latest 3 SEC filings:
Jan 17/06 - Form 10KSB Fortune Partners, Inc. For: Sep 30 (10K)

42,985,261 shares of common stock as of January 11, 2006.

Feb 10/06 - Form 10QSB POWER AIR CORP For: Dec 31 (10K)

May 15/06 - Form 10QSB POWER AIR CORP For: Mar 31 (10K)

43,000,646 shares of common stock as of May 12, 2006. The current market cap is $104,491,570 

Assets are just $714,297. Revenues $0.

«On April 24, 2006, our board of directors approved a private placement of up to 2,525,254 units at $1.10 per unit for net proceeds of up to $2,500,000 net of a 10% finder's fee, which we expect to raise by the end of May 2006. The Company to date has commitments for $1,692,900 pursuant to subscriptions received and expects to issue, as a result, a total of at least 1,539,000 units at $1.10 per unit. We anticipate that our working capital subsequent to this offering will be sufficient to enable us to complete phases 6 through 10 and commence phase 11 of our product development plan and to pay our general and administrative expenses for the next twelve months.

We will, however, require additional funds to complete phases 11 and 12 and commercialize our product and there is no assurance that we will obtain the funding necessary. If we do not continue to obtain additional financing going forward, we will be forced to abandon our plan of operations.»

So, the private placement on April 24 was at $1.1 a unit (unit is one share and one warrant to buy a share at that price). The stock closed yesterday at $2.43.

«We anticipate that we will require an additional $3,500,000 to pursue our business plan for the next 12 months and to provide working capital for our operating activities.»

«As at March 31, 2006, the Company had accumulated losses of $7,693,724 since inception.»

General Overview

I like the company's idea (although there are competitors with similar technologies), but, $104.5 M for a business plan?

For a BDC this is truly a high valuation. Perhaps they will sell a lot, but for now that is already reflected on the share price. I've studied several companies with the same kind of products, even yesterday, I studied CHDT which just made an acquisition of Complete Power Solutions, which is already selling products with the same application as PWAC, I believe. Sales at CHDT are growing 42% a month, on average, yet, the company is worth just $28 M.

update PWAC:

Tough market.. we had a gap up open that was the high of day and we closed at our entry price after having a nice gain yesterday..ouch.  Of course the fundamental evaluation of a development company looks bad!.. these companies don't have revenue.. only potential(zinc fuel cell 1yr down the road) and this one had blast off technicals that gave us 1 day of trying to leave the atmosphere.  I still like the volume although the candle is not a bulls friend.. I'm going to say this rocket has come to reload its fuelcell  ;)

We will go ahead and place a stop @ 1.99.. I know some of you would disagree with this stop so low but if you view the chart from our entry and the past movement and wipe away the 2 day failed blast-off.. one can see a chart with really cool volume growth and solid price movement that we are willing to speculate on.  >:D

I know some of you have stopped out and sold for a profit.. awesome job!  8)  Its all about your time frame.

------
Position: bought PWAC @ 2.20 on 5/24/2006
Order: Hold
Exit: stop @ 1.99
------

Hi G,

  The above message says there is a stop @$1.99, but the update email says holding it,  not stop, which one is the latest? thanks

PWAC although sold off a bitis still making higher lows and with the 50sma providing nice support on this rally gonna see if that 'support' can kick in again. A conflicting one for sure as it has potentially made a double top in the $2.50 area, so double top with strong support, will see.

Why the big selloff, I cant find any news?

Quote from: AussieTrader on June 05, 2006, 09:29:25 AM
PWAC although sold off a bitis still making higher lows and with the 50sma providing nice support on this rally gonna see if that 'support' can kick in again. A conflicting one for sure as it has potentially made a double top in the $2.50 area, so double top with strong support, will see.

The double top won out.......

Weekly and daily candlesticks say its time to buy PWAC again, and it broke out of a 3 month descending channel today.  Up 21% on the day, yet still down 66% from its peak .  This was a previous 3SOF pick, I was surprised it went down so far but kept watching it.  I am still not in, but maybe now is the time to buy?  Thoughts?

I didnt buy at .8, both Fous and I thought it would pull back to retest lows (and maybe it still will), but wow, its at 1.15 now...  hindsight is 20/20 in the stock market....

Quote from: tokyopua on August 18, 2006, 11:08:03 AM
I didnt buy at .8, both Fous and I thought it would pull back to retest lows (and maybe it still will), but wow, its at 1.15 now...  hindsight is 20/20 in the stock market....

Closed at 1.65 today, I would have doubled my money in less than a month if I had bought this.  Hindsight now at 20/10  :'(