From The Energy Report:
Energy tech companies have a business model that's closer to Apple Inc. than Apache Corp. In other words, it's all about the new product. The products Dominick & Dominick Analyst James McIlree is excited about offer major benefits like improved geological mapping for oil and gas explorers, or electric grid safety for energy utilities. In an interview with The Energy Report, McIlree talks about his favorite companies in the energy tech space and how understanding product cycles can help investors time their buys.
The Energy Report: Your investment firm, Dominick & Dominick, keeps a sharp eye out for companies that back up electrical grid operations. Are the ongoing battles over President Obama's proposed budget likely to impact small companies in this space?
James McIlree: We focus on companies with new products that have the ability to grow even in a sluggish economic environment. Companies that are looking for federal subsidies, or that rely upon the U.S. government as a customer, should re-think those business plans. Although the overall shape of economy is important, the product cycles of the companies we invest in are much more important to determining their success than the macro-economic scene.
TER: What are product cycles and why do you focus on them?
JM: In the technology markets, product cycles are the most important determinant of success...
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