Active Power, Inc. (ACPW)

Active Power, Inc. is a company that I see as a very attractive "long term" investment.










I came across ACPW randomly when I was reviewing past investments of Austin Ventures, a Texas based venture capital firm.

Fortunately, I discovered the company a day after the University of Texas announced a "green data center" that uses ACPW's uninterpretable power supply (UPS) systems. Knowing this was good news and good technology, I placed an order for 50 shares of ACPW @ $1.20 on 9/22/10.

As of today, ACPW is trading in the $1.42-1.52 range and while stocks below $3 tend to be very volatile I believe ACPW is a great long term hold for a number of reasons.

First, some speculate that our planet might experience future power disruptions via solar flares, weather disruptions, and natural disasters.
Such acts of God could seriously imperil data critical businesses and power critical establishments like hospitals and care facilities.

The technology that ACPW provides helps protect data and provides power critical establishments with a baseline power supply in times of crisis. Such technology should be viewed as a necessary "insurance measure" for any business or establishment that seeks to protect its data and power supply during crises.

Second, man-made electrical disruptions like electrical grid hacking and cyberwarfare present dangers on the same level (or perhaps greater) as the acts of God mentioned previously.

ACPW's UPS flywheels can give establishments enough time to react and protect data assets after an electrical grid attack. Furthermore, ACPW should investigate how their technologies can be used as an added security measure in the event of a cyberattack.

Lastly, ACPW's technology is a cleaner alternative to electro-chemical battery-based energy. With companies going with the trend and "going green" I can only view ACPW's technologies as an attractive clean energy and energy efficiency investment. As evidenced in the UT green data center, ACPW's technology also saves floor space.

All of these reasons make ACPW an attractive long term hold. Additionally, there might be some good "black swan" events to consider like a buyout by GE or the other energy related companies.

As always, "time will tell" and I'll hope for the best.