Wind Stocks I Cover

APWR, A Power Energy, a Chinese power plant builder who is going into China wind business during 2009 and has already signed a contract with General Electric to partner starting in 2010.   APWR is like a 3X ETF on wind, always up or down like a rocket rising or a rocket exploding (not for the faint hearted)  

APWR has no debt, lots of cash, and a lot of backlog for future business but is facing the startup of the wind division causing problems in the short term.   APWR main business model is building distributed power stations which are smaller localized power stations delivering electricity directly to the paying customer.

AMSC , based in USA and producing wind turbines, wind components, grid for the electrical lines, and a host of other parts associatted with electrical current and wind energy.  AMSC has won six Chinese companies using AMSC components and the biggest is Sinovel which has signed a long term contract for 450 Million.  AMSC is a play on China and also the power grid of the world where most countries need to upgrade their current and electrical grids.

Vestas (VWDRY) is the 800# Gorilla of wind energy and wind turbine delivery/installation/delivery/service.  Vestas has 24% of the world market share in wind energy , (GE is 2nd at 20%) and has been very profitable and is expanding like mad to take advantage of global growth in wind power for the future.   Vestas is based overseas but is moving global headquarters to Portland , Oregon and has FIVE Wind Turbine plants under construction in Colorado along with global facilities in 77 countries and is a global power and the heavy weight in wind power for the world.

Zoltek (ZOLT) is a carbon fiber producer who provides carbon fiber to most entrants in the wind power turbine blade production group. Vestas and Gamesa are two largest wind blade makers and Zoltek has counted both as primary customers for a while. Zoltek is not followed by many and has found more ways to step on their toes in the past but the future is all about carbon fiber for deep water drilling rigs, wind turbines, and even Apple computer is going to put carbon fiber in their new laptops to make them lighter and stronger. The real use for carbon fiber is higher mileage vehicles and airplanes into the future to help MPG and mileage of aircraft! ZOLT should be counted as a LONG TERM accumulation cause only God knows what their profits will be into the future!

AMSC came out with great earnings 7/31/09 and shot up 25% !!! Nice work on a Sinovel reorder and move up in the contract timing!

AUG 10th== NO longer following /endorsing Zoltek, too many misses and composites cleaning ZOLT revenues and profits! Maybe Carbon Fiber just too expensive for wind companies to use???

Sept. 6th, 2009 AMSC still overvalued given the ridiculous high P/E and Vestas fairly valued but with large cap ex in USA new plants and the Americans like to talk, ie Boone Pickens, vs buying wind turbines, Vestas could be headed down in near term. APWR still way undervalued with the future Thailand contract which will make APWR soar the day the contract is announced.
Sept 30th AMSC announces a nice new 100 million contract to Sinovel, AMSC up 10% today!

Oct 29th, 2009……AMSC knocks the ball out of park with earnings and AMSC UP 24% and APWR signs a 1.5Billion LOI with Cielo, US-REG, and Shenyang Power Group for a Wind Farm in Texas and APWR up 13% with much more to come……it was a GREAT DAY 4 anyone in AMSC and APWR

Nov 19th, 2009 AMSC announces a very NICE upgrade to 2010 earnings and revenues!! DAMN, why did I sell too early?? Congrats AMSC longs, my bad!