Electric Grid

The Solar Investment Tax Credit has been extended, and the market for mortgage debt "rescued," but neither renewable energy nor the rest of the economy are out of the woods.  We'll probably be feeling the effects of the financial imbalances which have built up in our economy for years to come. While the extension of the tax credit will help renewable energy technologies raise funding, the headwinds from the continued fallout of the structured finance and real estate bubble will be blowing in the other direction.  This will be a problem both for developers of new technologies, and...

Two Strong Grid Stocks in Hiding Tom Konrad, CFA A look at two transmission (or "Strong Grid") stocks I missed previously: EMCORE Group and AZZ Incorporated. In part I of this series, I made the case that 2010 might be the year that transmission stocks caught investors' attention, as smart grid stocks did in 2009.  In part II, I looked at the transmission stocks in our Electric Grid stock list, and compared their financial strength.  My initial screen, based on Current ratio, Cash on Hand, Debt, Cash from Operations, P/E ratio, and dividend yeild allowed...

Research Analyst Bucks NaysayersBy Joyce Pellino CraneJay M. Meier may be out on a lonely limb, but the senior research analyst at Feltl and Company is unwavering in his enthusiasm for Digi International, Inc. (Nasdaq:DGII)Meier is recommending Digi as a buy, insisting that the company is undervalued given its potential for growth in the smart grid sector.“The company is woefully undervalued,” he said, “and it’s probably going to start growing in the second half of 2010 as evidenced by all the smart grid technology it has...”But other research analysts are not so sure. I spoke with two who...

Tom Konrad, CFA Why wasn't Aluminum Conductor Composite Core (ACCC) technology mentioned in Colorado's REDI report? In December, I gave readers a brief summary and a few investing ideas based on Colorado's Renewable Energy Development Infrastructure (REDI) report.  I've now read the entire report, much of which is focused on Colorado's needs in terms of electric infrastructure.  In addition to some useful price data for long distance transmission, there was a short section on "the potential for new transmission technologies" (page 35.)   The new technologies mentioned were  Aluminum-conductor, steel-supported (ACSS) with ultra-high strength cores. Aluminum-conductor, composite reinforced (ACCR)...

This timeline is intended as a supplement to the article: Bold or Bogus? Digi International’s Move toward Smart Grid Technology.Source: The Investor Relations Group, New York, NYApril 2005 - FS Forth-Systeme GmbH/Sistemas Embebidos S.A. (FS Forth), providers of embedded modules based on the company's processors and NET+OS software, as well as other microprocessors with supporting embedded software. May 2005 - acquired Rabbit Semiconductor® Inc. (formerly Z-World™, Inc.). The acquisition expanded Digi's embedded portfolio to include the Rabbit line of microprocessors and microprocessor-based core modules and Z-World single-board computers (now all sold under the Rabbit brand). July 2006 - acquired MaxStream®,...

Charles Morand A little while ago, we received the following request from a reader: " when are you going to start an ETF or mutual fund called "Energy TS&E". T for transmission, S for storage, and E for efficiency. I guess you need an index first. I'm thinking Quanta, Amer Superconductor, Exide, Axion, Itron, Echelon, etc. There is no good one stop shop for this subsector. Sign me up." While we don't plan on launching a licensable index or a mutual fund because of all the regulatory thicket we'd...

by Debra Fiakas CFA My recent post “Bull Case in Rick Perry’s Grid Study” highlighted efforts by U.S. Energy Secretary Rick Perry to help the coal industry with a study of the U.S. electrical grid.  Coal has long claimed advantage as a ‘dispatchable’ power source, i.e. a consistently available power source suitable to supply power for the base load.  Technology is making base load less important.  Indeed, modernized or ‘smart’ electrical grids are making it possible to take advantage of low-cost renewable power sources even though they produce power intermittently and are therefore considered ‘not dispatchable’. ...

Perhaps ironically, it took one of the worst financial and economic crises of the past three decades to bring "the grid" into investor focus. To be sure, certain alt energy aficionados such as Tom have been on this topic for a long time (Tom is actually the one who introduced me to the grid as an investment theme). However, it is fair to say that most investors, including alt energy investors, have not historically paid the grid a huge deal of attention. That is because most people outside of alt energy and VC circles held, until recently, the Old...