Date: 4/1/12
Broker: Panmure Gordon
Company: VPhase
Share price: 0.58p
Target price: 5p
Recommendation: Buy
House broker Panmure Gordon has named AIM-quoted VPhase, which has developed the VX1 voltage optimisation product that helps to reduce domestic electricity consumption, as one of its top picks for 2012.
The broker believes that rising energy prices will make the technology increasingly attractive to consumers. VPhase has a link with Tesco and British Gas is trialling the product.
There are also international opportunities for the VX1. VPhase already has a relationship with GE that could open up the US market, while France and Australia are countries where sales have already been made.
A £2 million placing at 0.5p a share provides the cash for short-term working capital, marketing spending and product development. VPhase is not expected to move into profit until 2013.
