For those members who are new, you may not know the story of one of my favorite trading ideas.  It must be my favorite because I keep bringing it back. It has returned double digit gains BOTH times I presented it previously. 

Maybe THAT is why I keep bringing it back!

Today’s alert company is Superlattice Power, Inc. (SLAT)

The company could be an emerging leader in the development and marketing of the next generation lithium-ion powered batteries.

SLAT is creating the next generation of Lithium-Ion Batteries and here is an overview of the company and its technology.

Lithium-ion batteries are being touted as the next and best power source to provide both primary and backup power for a variety of uses. The benefits of Lithium-ion batteries are that they are smaller and lighter than other batteries, yet have a high energy density. Lithium-ion batteries are finding increasing application in defense, automotive, aerospace and industrial applications.

SLAT has a pending 3 for 1 stock split coming soon.  This is a BIG REASON why I think we should all be looking at this idea again right now.  I have seen a lot of big moves follow a split since investors naturally like to buy lower-priced shares.

Just so you know, if the 3 for 1 split happens when the penny stock closed at .60 the previous day, then the following day you would have 3 times as many shares at .20.  I don’t know about you, but I think a penny stock stock has a lot better potential for big % gains when it is lower priced.

According to Frost and Sullivan (a battery research and consulting firm), the market for Lithium batteries is expected to reach $1.77 BILLION by 2014.

The article went on to state, “Nonetheless, the market is in a growth stage for industrial, automotive and military applications, which will offer strong demand for primary lithium batteries in the next five to seven years. Other factors that support the battery market in general are the declining reliability of electricity transmission grids, the demand for dependable and rugged power sources to operate remote power, and the need for backup emergency power during the orderly shutdown of highly critical equipment.”  Read the full article here

SLAT’s batteries are rechargeable and composed of cathode, anode, separator and electrolyte composed of LiPF6 or different salts dissolved in different non-aqueous solvent.

SLAT, with several technology partners, has pioneered a Superlattice configuration that is a hexagonal structure and can accommodate more Lithium and more energy. The elements and specialty transition metals have been selected precisely to make Superlattice cathode materials safe, environmentally friendly and less expensive (a key in today’s competitive global marketplace).

As I said in a previous alert, their information on their site is highly technical (and an effective sleep aid). Any of my members are welcome to review the technical analysis of the properties of SLAT’s next generation technology, by clicking here.

SLAT is making the next step:  from research only to MANUFACTURE!

Here is a recent headline:

“SLAT has Started Expansion Work to Accommodate Dry Room and Machinery’s for Automatic Lithium Ion Battery Manufacturing Unit”

Read the full release by clicking HERE

The news of the manufacturing step was preceded by news regarding the effectiveness of their technology.

“SLAT Research Group Successfully Increased the Efficiency of Lithium Ion Battery”

On June 24th, SLAT issued a press release confirming their claims that their technology can and does increase the efficiency of Lithium-Ion batteries. Read it here.

To the Chart:

• The penny stock is trading below its most recent highs
• Volume is coming back into the stock.  i.e. it is under accumulation again
• The resistance levels do not appear to be strong resistance.  With volume and some bullish strength, SLAT could push past these levels and easily retest its recent high of $.75
• The penny stock is not overbought and the trend appears favorable

One final note: The company recently announced a forward split that will take place as soon as FINRA approves it.  This should have little or no effect, positive or negative, on SLAT. Typically, forward splits are benign and are undertaken for three reasons:  (1) to increase liquidity, (2) to keep the penny stock in a certain price range and 3) to indicate to the markets that the company believes the stock will go up.

I am hoping that we will see a higher move following the stock split for the simple reason that more investors are likely to pick up shares of a .20 stock rather than a .60 one.  I guess we’ll see what happens AFTER the split takes place, but I would want to position myself AHEAD of it.

Once you have completed your due diligence, be sure and get SLAT on (or back on) your trading radar. It has the “latest and greatest” technology in a hot sector that is growing.  Nothing wrong with that!