OPTT: What I Know and What I Don't Know

Ocean Power Technologies, $OPTT, is a company that makes equipment to harness the power of the ocean's waves and turn them into electricity.  Sounds like a great idea, because what I do know is that ocean waves are free and abundant.  

What I don't know is how well $OPTT's devices work, their cost efficiency, durability, and the economics of the power generation on a $/kWh basis if you include the manufacture and installation.  I have no clue about that.  Sure, I have a degree in Engineering from MIT.  I could spend the next 6 months learning about their technology, reading patents, talking to engineers, and get up to my elbows in calculus.  

But why should I do that when a group of smart people at Lockeed Martin ($LMT) have already done the hard work for me?  The fact is, I don't need to do any of that detailed research.  I see that $LMT today announced a $200mm deal with $OPTT to build an ocean wave power generation station off the coast of Australia.  $LMT is very familiar with $OPTT's technologies and capabilities; the two companies have been working together on smaller projects since 2004 and on this project specifically for about 18 months.  If $LMT believes in the future of $OPTT's ocean power harnessing technology, then I know it is a good bet to jump on that ship.  

What do you know?

Written by Jennifer Galperin.  Follow me on Twitter and StockTwits.