QTWW Shares Pass $2 On Record Oil, Solid Corporate News

Ultimately, my hesitance to load the boat on Quantum Fuel Systems Technologies Worldwide Inc(NASDAQ: QTWW), last Monday cost me dearly.

The dip back into the $1.10 range from $1.28 that I had hoped for never happened. News out over the past week has simply been too positive. Instead, the stock ran up to $2.10 today - $.20 off of its 52-Week high - on the highest daily volume since June.

News out of the company today states that Quantum's 25% owned German partner - Asola Advanced and Automotive Solar Systems GmbH - is tripling their annual solar module manufacturing capacity in response to growing European demand.

QTWW also stated plans to expand its ownership position in Asola and announced that the companies have jointly "entered into a long-term supply agreement with Ersol Solar Energy AG for the procurement of 155 MW of high-efficiency silicon photovoltaic solar cells, starting in 2008. "

The relationship is already expected to yield $600 million in combined sales. With its 2007 revenues approaching $167 million, the Asola partnership is one of Quantam's biggest assets.

Announcement of a long-term solar cell agreement with Ersol Solar Energy AG.

Keep an eye on QTWW

One company in the hydrogen space that we are watching closely is Quantum Fuel Systems Technologies Worldwide Inc (NASDAQ: QTWW)

QTW is a fully integrated alternative energy company and a leader in the development and production of advanced propulsion systems, energy storage technologies, and alternative fuel vehicles.

With a list of clients and partners that includes: NASA, Shell, GM, DailmerChrysler, Toyota, BOSCH, and Lockheed Martin, Quantam is already recognized globally for its innovation in the field of sustainable energy. According to the recent quarterly filing, the company is already booking revenues for sales of systems going directly into hydrogen-fueled Toyata Prius and being used in the GM Fuel Cell Hybrid Equinox program.

Financials are looking better as well. Here a few highlights for the company's third quarter filing:

• Total revenue in the third quarter of fiscal 2008 was $7.1 million compared to $2.3 million in the third quarter of fiscal 2007, a net increase of 209%.
• For the nine month period ended January 31, 2008, Company's consolidated revenues ($16.8M) were up 15% on from the corresponding period of 2007.
• consolidated operating loss decreased from $5.8 million in the third quarter of fiscal 2007 to $3.8 million in the third quarter of fiscal 2008.
• Product sales for the Quantum Fuel Systems segment increased $1.7 million, or 213%, from $0.8 million in the third quarter of fiscal 2007 to $2.5 million in the third quarter of fiscal 2008.
• Product sales during the third quarter of fiscal 2008 primarily consisted of hydrogen fuel storage systems for General Motors' fuel cell hybrid vehicle program and sales of hydrogen-fueled Toyota Prius hybrid vehicles.
• Net loss decreased from $21.6 million, or $0.33 a share, in the third quarter of fiscal 2007 to $1.4 million, or $0.02 a share, in the third quarter of fiscal 2008.
• Net loss decreased from $124.3 million, or $2.05 a share, in the first nine months of fiscal 2007 to $80.3 million, or $1.06 a share, in the first nine months of fiscal 2008.

The stock has been in a consolidation pattern over the past few weeks after gaining nearly 200% since January. This has been one of the best penny stock success stories that we have seen since the beginning of the year and recommend watching the company closely over the next few weeks. I'm still not convinced that I'm ready to pull the trigger at $1.28, but the $1.09 -$1.15 range may become more appealing in the coming day's given nothing too negative transpires.

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