Energy Conversion Devices a Speculative Buy

5/22 - "We remain optimistic about Energy Conversion Devices, Inc.’s (ENER) long-term potential success in the high growth alternative energy industry, given increased activity in solar power projects. The maker of thin-film flexible solar laminate products achieved profitability for the first time in the third quarter since it went public in 1969. The company is also developing and expanding its solar business while exiting other non-core businesses."

"Nevertheless, we note the stock is highly volatile, pending the sale of its Cobasys joint venture...Moreover, a history of negative profit margins and operating income without meaningful valuation metrics collectively show potential for moderate-to-high returns, but with high risk. Accordingly, we maintain a speculative Buy recommendation and a six-month target price of $74 on the stock."