Enova Systems (ENA) Soars After Reporting Record Revenue, Partnership With LG Chemical

Enova Systems (ENA), which makes hybrid vehicle drive systems,  had a big day today soaring nearly 66% up to the 2010 highs after the company reported a record quarterly revenue number and announced a partnership with LG Chemical.  While the company remains unprofitable and will likely remain so for some time, revenues bumped up to $3.7 million which is a 152% increase over the year ago quarter.

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Enova President and CEO Mike Staran stated, "2010 resulted in quarter after quarter positive gross margin growth, responsible cash management and core customer growth. Exciting partnerships with companies like LG Chemical further confirm our technology and allow us to penetrate incremental opportunities within the expanding market."

A subsidiary of LG Chemical will supply battery packs for Enova‚Äôs charge sustaining post-transmission hybrid drive systems.  This deal could open up some doors for Enova considering LG includes GM, Volvo, Ford, Renault, Eaton and Navistar as customers. 

Big move today and maybe it has some more left it in, but I would absolutely not chase it up here.  These kinds of news driven surges have a way of retracing quite a bit.  If it can retrace at least half this move, I might consider a position.

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