Wind: Oversupply Heralds ‘Flight to Quality’
David Appleyard A dramatic turnaround in the wind technology supply chain could bring opportunities for qualified suppliers, finds research by BTM Consultant ApS. Over the past five years the whole of the wind technology supply chain has been in flux. The industry has seen a dramatic turnaround, with a negative supply situation for some key components and materials transformed into the current position, with a significant supply surplus. We present the key findings of the latest BTM Consult Supply Chain Assessment report. Slower than expected economic recovery in the U.S., combined with the eurozone sovereign...
Western Wind to Sell Company, Avoid Proxy Battle
Tom Konrad CFA Western Wind and the Toronto Hedge Funds Last October, Western Wind Energy (TSXV:WND, OTC:WNDEF) received an unsolicited takeover bid of $2.50 a share from Algonquin Power (TSX:AQN, OTC:AQUNF) to buy the company. Before the bid, the stock had been trading in the $1.20-$1.25 range, but President and CEO Jeff Ciachurski felt that it did not fully value the company’s projects and assets, including approximately $1 per share of US tax assets which the Canadian company Algonquin would not be able to use. Large shareholders at the time were in favor of the sale, including at least one shareholder...
A Gust of Wind Industry Mergers
Tom Konrad CFA Wind Turbines photo via Bigstock A rising tide may float all boats, but a stiff wind separates the wheat from the chaff. Over the last week, it’s become clearer which wind developers are the wheat, and which are the chaff. Stronger developers with deeper experience are buying projects from their weaker kin. At least two such deals were announced last week. On May 15th, Western Wind Energy (TSXV:WND, OTC:WNDEF) signed a deal to acquire the entire 4,000 MW wind energy development pipeline of private Champlin/GEI Wind Holdings, with near...
California Approves Renewal of Wind Farm Permits
The Alameda County Board of Supervisors approved renewal permits held by wind power companies like FPL Group Inc (FPL), and other wind generators to produce electricity at the 584-megawatt Altamont Pass wind farm, one of the world's largest wind energy centers. One key stipulation for the renewal is that the wind power companies need to replace over 5,000 windmills over the next 13 years with 500 more efficient turbines with high blades that spin above the birds' flight paths. This may seem like a win for the wind farm utilities, but it comes with a price....
Trading Alert: AAER Inc. (TSE:AAE)
I took 2 long positions yesterday (1 in my normal trading account and the other in my retirement account) in an emerging Canadian integrator of megawatt-sized wind energy conversion systems (i.e turbines) called AAER Inc . Besides turbine assembly, the company also provides a range of services to clients in the wind industry, ranging from assistance in project planning and financing to post-installation maintenance. Now it must be said from the outset that is a very speculative play on North American wind and not suitable for all investors. I entered one of my positions at C$0.38 and the...
Companies Helping New York Take the Lead in Offshore Wind
by Debra Fiakas
The Lieutenant Governor of New York, Linda Hochul, has predicted that the state will be a world leader in off-shore wind power - a bold assertion for a state that still derives three-quarters of its electric power from fossil fuels. Natural gas has become the most important fossil fuel source. Yet in 2016, for the first time, over one million megawatt hours of electricity were sources from solar power and 24% of electricity is generated by renewable sources. This is remarkable given that just a few years ago even that accomplishment was given very low odds. There...
Alternative Energy Companies Posting Large Returns
Alternative energy companies delivered compelling returns for investors. A look at Crystal Equity Research’s ‘indices’ of renewable energy, conservation and environmentally-friendly technology companies found some exceptional price moves. We review five companies here that have experienced top price moves from 52-week lows.
Codexis, Inc. (CDXS: Nasdaq) has gained 257% from its 52-week low. The company won a place in our Beach Boys group through development of proteins for a mix of applications from biocatalysts for industrial enzymes, chemicals and pharmaceuticals. While the company has started generating revenue from its technology, it has yet to post a profit. Codexis delivered a smaller than expected loss in the...
Our Undiversified Wind Portfolio
Wind advocates like to say "The wind's always blowing somewhere" to counter concerns about the variability of wind power. This is true, and it means that wind can always be relied on to produce some power, but that does not mean that wind can always meet demand. In the United States' Great Plains wind belt, wind is typically anticorrelated with demand, meaning that, unless we can shift demand to times when the wind is strong, either through time of use rates or demand planning, overall energy production from wind will not be able to exceed 25-35% of overall demand...
Two Canadian IPPs For Your Portfolio
Most alternative energy investors are aware of North American wind power's very bright growth prospects. In past articles, we discussed encouraging projections for the US and Canadian (PDF document) wind markets between now and 2015. While onshore European capacity is fast being exhausted, North America is only beginning its foray into wind and some major capex can be expected in this space over the coming years. Besides solid expected growth, another phenomenon is currently impacting the wind industry; consolidation. This is a global movement that is affecting all of the power gen sector, and that has no-doubt been...
Is Composite Technology Corporation Still a Buy?
by Tom Konrad When I asked, Alternative Energy Stocks readers overwhelmingly wanted me to take another look at Composite Technology Corp. (OTC BB:CPTC.OB) I've discussed CPTC several times over the last year, and consider it my most speculative pick in electricity transmission and distribution. True to the nature of a speculative stock with no current earnings which is still trying to establish markets for its products, the stock price has been all over the map. The reader interest is doubtless due to the recent sharp decline since mid January. I personally sold a portion of...
AAER & The Hydro-Quebec Tender: A Tale Of The Importance Of Risk Management
Some of you may remember an article I wrote last March about a small Canadian wind turbine maker called AAER Inc (AAERF.PK or AAE.V). In fact, I got a few emails from readers informing me that they'd bought the stock following my article and that they were happy with its performance. The following chart traces the stock's performance between the date of the article (March 7, 2007) and last Friday (May 2, 2008): Since I wrote this article many things have changed with AAER. The Katabatic contract, which is what attracted my attention initially,...
Buying Innergex – Texas Was Bad, But Not That Bad
By Tom Konrad, Ph.D., CFA
Last week, I published this call to buy Innergex (INGXF, INE.TO) because investors had been overreacting to the losses from the February cold snap in Texas. The stock is up since then, but still seems a decent value.
Canadian Yieldco Innergex Renewable Energy (INGXF, INE.TO) took a big financial hit from the power disruptions in Texas in March.
It's complex, but their financial hedges on power prices for three of its wind farms ended up creating enormous liabilities - more, in fact, than two of their wind farms are worth. Two of their facilities also had benefits...
Wind Power in Hawaii
Hawaiian Electric Industries Inc (HE) has begun a one-year study to verify the wind energy potential on the ridges above the company's Kahe Power Plant. The study began in April of this year to monitor wind speed, direction and turbulence so the utility can confirm the area's potential to generate electricity with wind. Recently completed high-resolution wind resource maps indicate that the ridges above Kahe have one of Oahu's strongest wind resources.
What A Portfolio Approach To Climate Policy Means for Your Stock Portfolio
Portfolio theory can lend insights into which carbon abatement strategies policymakers should pursue. If policymakers listen, what will it mean for green investors? Tom Konrad, Ph.D., CFA Good Info, Not Enough Analysis I've now read most of my review copy of Investment Opportunities for a Low Carbon World. The quality of the information is generally excellent, as Charles has described in his reviews of the Wind and Solar and Efficiency and Geothermal chapters. As a resource on the state of Cleantech industries, it's generally excellent. As an investing resource, however, it leaves something to be desired. Each chapter is written...
BT gets behind renewable energy
British Telecom has announced a three-year plan to get all of its energy needs from renewable sources - the biggest such project in the world. The electricity used, worth hundreds of millions of pounds, could power a city the size of Nottingham. Renewable sources of energy include wind, wave and solar power, rather than using fossil fuels like oil or coal.
Maxwell’s Misreported Revenue: More to Come
Tom Konrad CFA On March 7th, Maxwell Technologies (NASD:MXWL) announced problems with revenue timing. Unlike Lime Energy (NASD:LIME), which I discussed in the previous part of this series, there was no hint of any fictitious revenue. The disclosure was very specific that “The errors relate to the timing of recognition of revenue from sales to certain distributors.” The announcement went on to discuss “arrangements … regarding the payment terms for sales” at these distributors. As a result of the discovery, “certain employees were terminated and our Sr. Vice President of Sales and Marketing resigned.” Maxwell is reviewing deficiencies in...
