Which Small Cap Company Is Advancing A Major Deal With Mitsubishi Caterpillar?

Tecogen Inc. (US:TGEN – $3.88 & GER:2T1 – €2.89) designs, manufactures and sells industrial and commercial CHP (Combined Heat & Power), or cogeneration, systems that produce combinations of electricity, hot water, and air conditioning. It’s a well-established Company that has already shipped over 3,000 units, some of which have been operating for more than 35 years.

The market had little reaction to Tecogen’s Q1 results. This is to be understood as revenue and gross profits declined, which will generally not attract the attention of new investors. What is more important though is that Tecogen has set itself up for a lucrative 2019 by shoring up its balance sheet, nearly doubling backlog since the end of 2018 and continuing with plans to market Tecofrost, which will only add to revenues and backlog for 2019 and beyond.

Moreover, the test results of the propane fueled Mitsubishi Caterpillar forklift truck are consistent with the program goal of near-zero certification. The Company is most likely to pursue this certification in the coming months.

TGEN remains an under-the-radar stock. As the stock price remains fairly steady, existing shareholders can view the first quarter financial statements as one step closer to the small cap achieving its goal of consistently profitable revenue growth. Its thinly traded nature makes it a prime candidate for a major run towards our target price on positive news or demonstrated profitability.

We reiterate our buy recommendation for Tecogen Inc. with a target price of $9.41, which is 142% above today’s stock price.

Download the first quarter 2019 Tecogen Inc. Company Report.

Smallcaps.us Advice: BuyPrice Target: $9.41Latest Company Report (pdf)
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