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Good Evening!

Sauer Energy, Inc. (SENY) has developed a consumer-friendly wind power technology, using easily installed vertical turbines, which it hopes to market this year for retail and residential sale. (Read more)

Unlike most windmill manufacturers, SENY won't primarily sell its turbines to utility-scale wind farmers...these aren't the 300-foot monster mills that cost $1.5 million or more per megawatt...these are 5-foot tall "bird scarer" designs that could sell for around $6,000 per kilowatt-hour. (Read more)

And as you'll learn tomorrow morning, these priced-just-right alternative energy generators may prove to be a very tempting purchase for the estimated 13 million families who live in a high-wind neighborhoods who want to dramatically lower their energy costs. (Read more)

But for tonight, let's look at this new little stock (it's only been on the market since June) and try to get a handle on why it's been trading up.

Over the last 4 weeks SENY has outperformed other wind stocks by 11%!

Technically, SENY may have been trading for the last 8 months, but until its latest quarterly report came out on January 20th, it was so thinly traded that it was almost none existent.

But after the report was released, turnover ramped up very, very quickly. In fact, over the last 22 sessions, there's been a 3,300% increase in volume!

Put another way, over the last 3 months, 99% of all SENY volume has been clustered into the last 4 weeks. That's not just a "huge volume spike"...it's practically a virtual IPO!

And all that volume translated into some decent price action – not a blockbuster by any means – and yet, while wind ETF PWND has been down a bit over the same time period, SENY is still up a net 11% – trading at just over a dollar a share!

Plus, traders have picked up some nice intraday gains in those sessions when SENY dipped appreciably...more than 1 or 2 cents...and then popped back up 9% or 10% by the close.

Technically speaking...

• Accumulation spiked a month ago and remains near its recent ceiling.

• STO is also elevated at 69...indicating that momentum here has been practically as strong as it gets without setting off the "overbought" sirens.

• As mentioned, recent volume has soared so much that even comparing it to pre-January turnover is practically meaningless. And up/down ratio since trading picked up is biased to the bulls, 3 to 1.

• No 200 mda yet. SENY has been flirting with the 50 mda line last Thursday though.

Investors want to pick up more SENY shares...but the CEO won't let any of his go! 

One last point tonight: As SENY's accumulation line demonstrates, demand for this stock has been unusually robust.

Since going public in June, SENY has sold 938,000 shares to private investors in order to raise $234,500 in operating cash. (Read more)

But what was unexpected was the actual demand – investors were practically begging for shares – and as SENY noted in their SEC filing, the offering was oversubscribed by 17%. (Read more)

But even in the face of that demand, CEO Dieter Sauer Jr. has held onto most of the 51% controlling float. (Read more)

And at today's price, that stake...39.8 million SENY shares...is worth approximately $45 million.

That's a pretty big vote of confidence in the success of the company he founded and still bears his name.

So what does he know, and why was the stock offering oversubscribed?

Stay tuned for Part 2, where we'll uncover exactly what makes SENY's windmills so special. (If you can't wait, check out the videos on the company's site.)

See you in the winners' circle!

Beacon Equity Group