We've been telling you for some time now that MMC Energy (OTC BB: MMCN) would continue to acquire more and more facilities to ramp up the company's gross electricity capacity and return profit to its shareholders.
Well, MMC reported earlier this week that it has made its third power generating acquisition in California this year.
This brings the firm one step closer to the 1,500 megawatt mark that we've also talked about recently.
Fact is... MMC is one of my favorite energy plays right now simply based on the company's potential to rapidly grow. Like I said, we can expect this outfit to grow 15X from its current nameplate capacity of 100MW to approaching 1,500 MW within the next 24 months if not sooner.
That much power capacity is worth over $1 billion. Yet this company -- which is brand new -- has a market cap of less than $100 million.
That means we could easily see gains on the order of 10 to 1 in the next 18 to 24 months.
That's why we need to hold a position here.
Let me bring you up to speed...
MMC's current portfolio consists of two peaking power generation facilities located in Chula Vista and Escondido, California.
Each facility currently has a gross nameplate capacity of 44 megawatts and is powered by two natural gas-fired Pratt & Whitney FT4A-9 jet engines.
Where Will America Go When The Sheiks Run Dry
Middle East oil fields are parched. Even the Giants such as Ghawar, Burgan and Safaniya-Khafji are requiring POST PEAK PRODUCTION METHODS to squeeze out every last drop.And as the situation worsens, America is turning to some unexpected allies - safe from any terrorist threat or Oil Cartel. A few lucky investors who saw it coming a year ago are already sitting on more than 136%. But that's just a drop in the bucket when you see where it's headed.
Not long ago I told you that MMC reported a Request for Offers (RFO), which calls for a planned 94MW expansion of its Chula Vista Power Plant
But this will only bring the company's capacity to 138 MW. To reach the 1,500 MW level, MMC plans to buy more power plants at a steep discount to market and reorganize them so they run efficiently and profitably.
And like I mentioned earlier that's just what they're doing...
MMC Energy announced this week that it has entered into a definitive agreement to purchase the Taft Power Plant located in Bakersfield, California, which has a rated capacity of 23 megawatts.
The company said that it won't have to take on any debt to acquire the plant as it plans to fund the purchase with cash on hand.
True to their business model, MMC plans to re-commission the Taft Power Plant following closing and completion of some minor maintenance work. This should further increase the plant's gross nameplate capacity.
But this is still just the beginning...
I expect MMC to continue acquiring small to mid-sized merchant power generating facilities that are available at a deep discount to their replacement cost.
The Engine to Change it All?"
The technology is so revolutionary that it was headlined on CNBC, FoxNews, MSNBC and CNN.The stock's already up more than 261% since March! But with major Defense contracts already underway and the drooling interest from the Big Three Automakers, I think it's going to go a lot higher
- maybe another 312% by the end of the summer.
And using the management's expertise in the sector, I believe that they will be able to significantly ramp up the output at any power facility acquired.
MMC's Chairman and CEO, Karl Miller commented on the recent Taft acquisition saying, "This transaction marks the third acquisition MMC has made in California this year with additional acquisitions expected prior to year end. MMC will continue to invest in power generation facilities and energy infrastructure assets to deliver critically needed energy to California as long as the regulatory and market structural changes continue support MMC capital investments."
I expect MMC Energy (OTC BB: MMCN) to be another long-ball grand slam for us.
This stock is an absolute must own.
Subscribe to