Smart Grid Investment

The global industrial giant, Siemens, is making a smart grid investment in the start-up company, Tendril. Siemens is a world-wide leader in energy distribution and management systems on the large scale but has had no home directed products, until now. Tendril provides home based, real time, solutions for effective energy use and conservation. As the world becomes increasingly energy efficient the Siemens smart grid investment in Tendril could become a long term money maker. As part of energy efficiency trials utility companies are using Tendril equipment for in-home smart grid trials. The point is to reduce peak time electric demand from homes by monitoring home energy use. The presence of Siemens in this market indicates that the demand for and use of home energy management systems will become widespread on a scale of millions of homes. According a company press release it is the scalability of home system monitoring that is a current focus of joint Siemens and Tendril efforts in smart grid investment. How to invest in stocks like Tendril or Siemens is to analyze the need that their products service and the profit that the companies expect to derive from sales. If this technology becomes generalized in the first world, that will be a rather large and potentially profitable market.

What is the first step to investing in this sort of technology? The profitability of this joint endeavor can be looked at from either the viewpoint of investing in Siemens or from investing in Tendril. The manufacturing giant will be a global marketer and distributor of products developed by Tendril. It is also likely that Siemens will use parts of technology developed by Tendril for its own products. Obviously a large company such as Siemens will not expect to see growth in multiples from this joining of forces. However, Tendril just might. Tendril is a private company founded in 2004. Investors who do not have an inside track will need to wait for an IPO in order to buy stock in Tendril. The alliance with Siemens may well give Tendril a step up over competitors as the home electric management market moves from R&D to general usage.

One way to find profitable investments today is to follow the lead of leaders in an industry. Siemens has a track record of successful research and development and product launches. It had its choice of many technology partners in this market sector and chose Colorado based Tendril as its partner. Siemens has invested in Tendril and will market products in North America as a starting point. Investors will be interested in news regarding Tendril products and any move to market Tendril technology outside of North America. As usual we are not suggesting investment in Siemens or Tendril but rather indicating a means of finding and researching profitable investments such as the smart grid investment by Siemens in Tendril.

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