Wednesday, July 11, 2007

Wind Power Stocks are Spinning

Some facts about wind power:
1. Wind power generation went up over 300% between 2000 and 2006.
2. It provides 20% of electricity in Denmark.
3. It provides 9% of electricity in Spain.
4. It provides 7% of electricity in Germany.

The following stocks are a list of the pure plays and semi-pure plays in the wind energy field. Companies which have a very small portion of their business in wind were excluded, such as General Electric (GE), FPL Group Inc. (FPL), and TXU Corp. (TXU). Some of these stocks should be considered very speculative and none are recommendations.

Alstom (AOMFF.PK) is involved in various types of power segments including gas, hydro, nuclear and wind power through its Ecotecnia division, which is a Spain based producer of turbines. Net income was positive for 2006 versus a loss for 2005, on increased sales revenues for the year.

Americas Wind Energy Corporation (AWNE.OB) manufactures and markets medium sized, 500 - 1,000 megawatt wind turbines for the North American market. During the three months ended April 30, 2007 and April 30, 2006, they did not generate any revenue.

Composite Technology (CPTC.OB) makes and markets renewable and energy efficient electrical products including wind generation turbines under the brand name 'DeWind'. Earnings have been negative.

Gamesa Corp. (GCTAF.PK) is based in Spain, with 18% of the world's share of the wind turbine market. Their net income grew by 48.8% for 2006 over the previous year.

Energias de Portugal (EDPFY.PK) is a Portugal based company which is one of Europe's largest electricity providers and the fourth largest wind power producer in the world. One of its newest divisions is Horizon Wind Energy. Gross profit for the first quarter of 2007 increased by 12.8%, with a 1.8% increase in net profit.

Iberdrola (IBDRY.PK) bought Scottish Power, so it is the world's largest provider of wind power, and the second largest electric utility in Spain.

Kore Holdings (KORH.PK) A power provider and marketer of alternative energy from wind farms, hydro and distributed power facilities. Financial could not be found on their website beyond July 2006.

McKenzie Bay International Ltd. (MKBY.PK) Develops wind powered alternative energy systems. Earnings have been negative, based on latest reported quarter.

Mass Megawatts Wind Power Inc. (MMGW.OB) develops prototype wind energy production equipment. Earnings have been negative, based on latest reported quarter.

Nordex (NRDXF.PK) is a German based wind turbine company. In the first quarter of the current fiscal year, they had a 21 percent increase in sales and earnings increased by 52%.

Tower Tech Holdings Inc. (TWRT.OB) is involved in the engineering, manufacture, and sale of wind turbine extension towers to the wind energy industry. Earnings have been negative, and the P/S ratio is 35.5.

Vestas Wind Systems (VWSYF.PK) is a Denmark based company, which is the world's largest manufacturer of wind turbines. Revenues were up 6.3% for the first quarter of 2007, and earnings went from a loss to a profit for the quarter.

Western Wind Energy (WNDEF.PK) Produces clean renewable electrical energy from over 500 wind turbine generators located in Tehachapi and San Gorgonio Pass near Palm Springs, California. It has been generating negative earnings per share.

Author does not own any of the above.

By Fred Fuld at


Alex Landefeld said...

One addition to your list might be Zoltek Companies (ZOLT). While not a pure play, this carbon fiber company has made news recently as a supplier of carbon fiber for windmill blades to both DeWind and Vestas. And, despite its not being a pure play, perhaps, the market is treating it as such, having driven it's share price from a 52-wk low of 18 to a recent 47.

Scott Felsenthal said...

Don't forget about BAM (Brookfield Asset Management) in this group.

Scott Felsenthal said...
This comment has been removed by the author.
Dividend Growth Investor said...

What If I was interested in purchasing pure Wind Electricity Companies- companies which actually generate the electricity from Wind turbines.

kevin kretzschmer said...

Dose John Deere show up as a player in this arena? I know what they have done with wind farms here in Michigan and have looked at some of their other operations. It appears that they are targeting the farmers to provide them with residual income by leasing land from them which sounds like a "win win" at least from my prospective.