Environmentally friendly locomotives pass muster

7/2/2008 4:35:16 PM | Buzz on the Boards

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Shares of Railpower Technologies (P) up slightly on successful test in California.

One of the more volatile non-resource companies that is a favorite of Stockhouse readers is Railpower Technologies (TSX: T.P, Stock Forum). The Quebec-based developer and producer of specialized enviro-friendly transportation products released news today stating that it has successfully completed testing of its RP20BD locomotive in California. From the news release:

For Railpower, the demonstrations represented the opportunity to showcase the merits of the RP20BD design: when compared to a conventional GP38 locomotive, advanced adhesion in certain operational conditions is increased by approximately 54 percent, fuel consumption is reduced up to 45 percent, and reductions of NOx and particulate matter emissions are 80 and 90 percent, respectively. (Go to news release.)

The share price of Railpower has been on nothing short of a rollercoaster ride ever since Ontario Teachers’ Pension Plan took a stake in the company back in late 2007 when the stock was trading near 30 cents – it rose to around 65 cents. (It was down from 2006 highs of near $7.00.) The stock dropped back after the initial spike, but then popped again when Teachers’ announced another investment for manufacturing plant construction. Shares have been hovering between 40 cents and 45 cents now for a few weeks. Railpower was up almost 3.5% in trading today to 44 cents.

In response to the news, Stockhouse member Bannick said, “We need to see more reviews / releases like this one... some very impressive numbers. Granted these are shortline RR's in CA but the application and usage I would expect is typical. Now to turn some into orders... [sic]”

Investor royallepage agreed that the news was positive, and had this to say: “This is no longer a speculative stock!!! its a long term investment with a great future ahead and a possible takeover.
You all remember what Bombardier went through and look at it where it is today. Railpower Technologies may soon suprise all of us. [sic]”

Whether it will or not remains to be seen. In the meantime, check out the action on the Railpower Bullboard.

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