If you thought you might not see another green energy or less-dirty energy exchange traded-fund, there is a new ETF for you.  First Trust Advisors is launching the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund of the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ: GRID) today.  So far we are seeing a gain in the ETF by 0.8% to $30.39, but on fairly thin trading volume of about 134,000 shares as of 11:20 AM EST.  We have seen many other green ETFs, but this is actually the first designated ETF or ETN that is geared solely toward the smart-grid rather than just to green energy.  There will be some overlaps in this ETF with others, but that is often the case.

This ETF aims to track equity index called the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index, which is designed to act as a “transparent and liquid benchmark” for the grid and energy infrastructure sector.  The most interesting aspect of this is that it may highlight which individual companies are making leaps and bounds here in the smart grid.  As you might expect, there are many overlaps in here with the other clean or green ETF products via the PowerShares Global Clean Energy (NYSE: PBD), PowerShares Cleantech (NYSE: PZD), PowerShares WilderHill Clean Energy (NYSE: PBW), and the First Trust NASDAQ Clean Edge Green Energy (NASDAQ: QCLN).

The Index is a modified-market cap weighted index and includes companies that are “primarily engaged and involved in electric grid, electric meters and devices, networks, energy storage and management, and industry-related software.”  The index is also jointly owned by the NASDAQ OMX Group,
Inc. (NASDAQ: NDAQ) and Clean Edge, Inc.

There are many overlaps in here as you might expect with electric and clean/green ETF products already on the market.  We have listed notes here on each if they are in the top ten components of other ETFs such as PowerShares Global Clean Energy (NYSE: PBD), PowerShares Cleantech (NYSE: PZD), PowerShares WilderHill Clean Energy (NYSE: PBW), and the First Trust NASDAQ Clean Edge Green Energy (NASDAQ: QCLN).

Some of the components are as follows (and noted if they are in top ten holdings in other clean or green ETFs):

• Advanced Energy Industries (NASDAQ: AEIS)
• American Superconductor (NASDAQ: AMSC) (also in PBW, PBD)
• Comverge Inc. (NASDAQ: COMV)
• Digi International Inc. (NASDAQ: DGII)
• Echelon Corp. (NASDAQ: ELON) (also in PBW)
• EnerNoc Inc. (NASDAQ: ENOC)
• ESCO Technologies Inc. (NYSE: ESE)
• General Cable (NYSE: BGC)
• General Electric Co. (NYSE: GE)
• Intellon Corp. (NASDAQ: ITLN)
• ITC Holdings Corp (NYSE: ITC)
• Itron Inc. (NASDAQ: ITRI) (also in PBW and QCLN)
• Mastec Inc (NYSE: MTZ)
• Pike Electric Corp. (NYSE: PIKE)
• Power-One Inc. (NASDAQ: PWER)
• Quanta Services Inc. (NYSE: PWR)
• Satcon Technology Corp. (NASDAQ: SATC)
• Valmont Industries Inc. (NYSE: VMI)
• WESCO International Inc. (NYSE: WCC)

The larger ADRs listed in the index are as follows:

• ABB Ltd. (NYSE: ABB) ADR (also in PZD)
• Cooper Industries Plc (NYSE: CBE) ADR
• Jinpan Intl Ltd. (NYSE: JST) ADR
• National Grid PLC (NYSE: NGG) ADR
• Siemens AG (NYSE: SI) ADR (also in PZD)
• Telvent GIT SA (NASDAQ: TLVT) ADR

In order to keep companies like GE from being the entire weighting, there is a methodology used to keep the weighting down or in-check.  These have to have smart-grid exposure and traded on an eligible stock exchange.  Pure-play components are given a collective 80% weighting, and the more diversified components not deemed pure-plays are given a 20% total weighting.  The pure-play components must derive 50% or more of revenues from smart grid, electric infrastructure, and other grid related activities.  Companies with a market cap of under $100 million are not eligible and the average daily share trading volume must have averaged $500,000 per day.

What is important to look at is the disclosures and risks associated with all ETF and ETN products so you know exactly what you are investing in…

There is a tracking-risk here which the release noted as “NON-CORRELATION RISK” where the ETF’s return may not match the return of the Index for a number of reasons: operating expenses for the fund not applicable to the index itself, and costs in buying and selling securities.  The ETF will generally not sell a stock because the stock’s issuer is in financial trouble, unless that stock is removed or is anticipated to be removed from the index.  The ETF will also invest in securities of non-U.S. issuers, which can be subject to additional matters of U.S.-traded stocks; and that also brings in a currency risk into play as the Net Asset Value is determined on the basis of U.S. dollars each day.

JON C. OGG
November 18, 2009

American Superconductor Corporation (NASDAQ: AMSC) is one of the (almost) cult stocks out there in the field of alternative energy and green energy as its has proprietary megawatt-scale wind turbine designs and electrical control systems.  The company has announced two orders this week, yet shares are ignoring the news.  It seems that the valuation and performance is going to demand from the company.

The company announced yesterday that it has received a follow-on order for $10 million worth of wind turbine core electrical components.  This was from China’s CSR Zhuzhou Electric Locomotive Research Institute Co., Ltd. and will be used in the 1.65 megawatt wind turbines designed by American Superconductor’s Windtec subsidiary.

Then this morning came the announcement that American Superconductor received a follow-on order for 30 sets of electrical control systems.  This order was from Hyundai Heavy Industries Co. for its 1.65 megawatt wind turbines now in production in South Korea. AMSC has already received an electrical control systems order for HHI’s 2 MW wind turbine prototypes and all of the systems will be shipped by the end of May 2010.

Neither order announcement has generated much buzz in the stock.  Yesterday shares were down about 1% at $31.78 on only about 579,000 shares after the first announcement was defined and shares are down 0.25% at $31.70 on under 100,000 as of 10:10 AM EST this morning.

What is interesting is that American Superconductor is still under the $100 million per quarter in revenues business stage.  That means that any and all new or follow-on orders can influence the quarter.  You may never know if there was hope for more or if this is a bump above, but estimates for the current December-end quarter are $77.27 million according to Thomson Reuters.  The total 2009 revenue targets are $307.76 million, and the 2010 revenue targets are $406.8 million in revenues per Thomson Reuters data.

The $31.70 price today compares to a 52-week trading range of $8.22 to $37.58.  The problem despite a solid position is that the valuations (and share recovery) may be priced for perfection.  Thomson Reuters has consensus estimates pegged at $0.62 EPS for 2009 and $1.04 EPS for 2010.  That gives implied forward P/E ratios of 51-times expected 2009 earnings and 30.5-times expected 2010 earnings.

American Superconductor is a solid company and fits right in with the move to a greener world in the current financial-political landscape.  It is just far from undiscovered and it is going to take either much larger orders or many more individual orders to move the meter in the share price.

JON C. OGG
November 18, 2009

New research indicates that transportation companies will benefit the most from the government’s huge stimulus investment in infrastructure. According to a new ChangeWave survey of 313 people who work for companies involved with infrastructure projects done between September 29 and October 5,  alternative energy will be that other sector that will do well because of federal investment in new products.

Fifty-six percent of those surveyed believe that
transportation infrastructure will see the largest benefit and 43% picked alternative energy projects. The poll also noted that water infrastructure has experienced the largest increase since the previous survey in March — jumping 10 points to 21%.

When ChangeWave asked industry respondents about the current availability of stimulus funds.  Forty-one percent said availability is greater than it was 6 months ago and only 12% said that stimulus funds are less available than before.

Based on the findings of the poll, ChangeWave suggested that some of the beneficiaries of the trends might be Caterpillar (NYSE:CAT), Fluor (NYSE:FLR), Siemens (NYSE:SI), GE (NYSE:GE), and Johnson Controls (NYSE:JCI).

Douglas A. McIntyre

Applied Materials Inc. (NASDAQ: AMAT) is on deck for earnings this afternoon right after the market closes. The chip equipment giant, and relatively new solar player, is the king of its sector to most traders and investors and will potentially have an impact on all the chip equipment stocks in the sector.  Estimates from Thomson Reuters are $0.03 EPS and $1.32 billion in revenues for its October quarter, which is also its year-end with estimates of -$0.14 EPS and $4.80 billion in revenues.

Applied Materials does represent about 13.55% of the Semiconductor HOLDRs (NYSE: SMH) ETF, but only represents about 5% of the Ultra Semiconductor ProShares (NYSE: USD) ETF.  We will be looking to its fiscal-2010 comments more than this last quarter.

While many analysts expect a recovery for 2010, with Thomson Reuters estimates at $0.38 EPS and $6.20 billion in revenues (higher than just a week ago), there is the notion of what to say about valuation and its stock performance.  With a loss for 2009 and with a P/E ratio of over 30 for next year, the bulls have to bet that the semiconductor companies are going to hike orders well above what the official expectations reflect even after considering the recently raised estimates.

Applied Materials was at $12.40 just on the close Friday, and shares are at $13.17.  This new increase represents gains of over 50% from March 9 and 15% just since June 30.  What is important here is the stock chart.  Shares did not get back down to the 200-day moving average two weeks ago ($11.66 now) and the current 50-day moving average ($13.02) was pierced this week.  $13.75 has acted as strong resistance in September and October.

Analysts are mixed and it appears that a consensus price target is over $15.00.  Options have been a bit active today ahead of earnings and it appears as though options traders are not really bracing for a move of more than $0.40 in either direction.

What is interesting is that the earnings reaction from Applied Materials is not likely to run back upstream to the end-users and  makers of chip and semiconductors.  We have already seen their earnings and more importantly their guidance, and in theory they can all hold off on cap-ex spending even if a recovery comes on stronger than what has been seen and compared to what is expected.  At the same time, cap-ex and equipment purchasing has greatly lagged the overall chip and tech recovery and Applied’s comments may potentially be key for evaluating semiconductor companies on their expense plans farther out into 2010.

Lastly, we will be paying close attention to what the company says regarding its solar operations for 2010.  The entire sector is under pressure as margins are contracting and orders are getting harder to come by or are getting pushed out.  Solar can be and is a great help to the energy problems that America and all countries face, but in many aspects these solar stocks may represent nothing more than a call option on much higher oil prices.  Stay tuned.

JON C. OGG
NOVEMBER 11, 2009

Earnings season has wound down now with over 85% of the S&P 500 Index having reported.  Still, there are some key companies posting their quarterly results and some companies were screened out of this list which are still actively traded or widely held stocks.  Electronic Arts Inc. (NASDAQ: ERTS), Energy Conversion Devices, Inc. (NASDAQ: ENER), Priceline.com Inc. (NASDAQ: PCLN) and Sequenom Inc. (NASDAQ: SQNM) are on deck Monday. Also this week are earnings from Tyco International Ltd. (NYSE: TYC), Applied Materials Inc. (NASDAQ: AMAT), Macy’s, Inc. (NYSE: M), are Nordstrom Inc. (NYSE: JWN). Wal-Mart Stores, Inc. (NYSE: WMT) and Walt Disney Co. (NYSE: DIS) are our two DJIA components reporting this week.

We have included Thomson Reuters consensus estimates and included performance and other important color where applicable.  We have shown the share performance since the March 9 close that traders mark as the official end date of the bloody bear market.  One issue to consider is that we used the performance since June 30 to keep consistency for our prior previews even though some of the quarter-ends this coming week are technically August 31.

Electronic Arts Inc. (NASDAQ: ERTS) is on deck Monday afternoon.  As always, EA has a huge discrepancy between its non-GAAP and GAAP data.  The most recent short interest was over 21.5 million shares, which is actually the largest short interest position seen in EA over the last year.  This last quarter is a mere fraction of the importance of what lies ahead because the holiday season is the most important quarter in video games.  Estimates are $0.07 EPS and $1.13 billion in revenues, but the coming quarter we are already in has estimates of $0.88 EPS and $1.61 billion in revenues.  EA has lost its was as a stock as its $19.00 share price is in the middle of a $14.24 to $23.95 range in the last year.  But the slide that started in September 2008 was never recovered as it was almost $50 then and was a $60.00 stock  two years ago.  The stock is only up about 21% from March 9 and it is down over 10% since June 30.

Energy Conversion Devices, Inc. (NASDAQ: ENER), the solar play everyone used to love that can now find no love, is on deck Monday. Consensus estimates are -$0.31 EPS and $56.4 million.  Next quarter consensus is -$0.20 EPS and $71.65 million in revenues.  Its fiscal year is June-2010 and it is expected to lose money for the fiscal year.  The reason this will be interesting is to hear if there is any truth to anything regarding a takeover, particularly since this one had a rights offering in the last quarter.  This 15.3 million share short interest is going to be a reason in the reaction.  The stock has been an awful performer and the only good news is that it is now ‘only’ down about 70% from a 52-week high rather than down almost 90% like it had been before hose old $80 peak share prices went out of the 52-week parameters.

Priceline.com Inc. (NASDAQ: PCLN) is on deck for Monday afternoon and consensus estimates are $2.92 EPS and $693.9 million in revenues.  Next quarter estimates are $1.49 EPS and $506.8 million in revenues.  Priceline might not be a key economic company, but it gives insight into travel trends that can still be applied for hotels and airfare.  The stock is also up well over 200% from its 52-week lows, up over 100% from the March 9 close and up over 50% from the June 30 date.

Sequenom Inc. (NASDAQ: SQNM) is on deck and the actual earnings report is not what will be of interest.  Consensus estimates are -$0.28 EPS and $8.54 million in revenues.  But the issues to take here are that the company is still largely vacant after the wave of management firings and resignations over the botched data handling of its Down’s Syndrome test results.   It has recently hired a CFO and the company just entered into an amended exclusive technology license with Isis Innovation Limited for the fundamental patented noninvasive prenatal diagnostic technology.  Isis agreed to certain time-based commercial launch milestones and Sequenom agreed to make an immediate one-time payment of $1,000,000, increase royalty payments under the agreement during the final 12 months of the patent term and increase the specified minimum royalty amounts.  Cash-burn is key here… It ended with over $70 million in cash last quarter and what the company says about how long that lasts will be key and you know that the cash is being consumed much faster now and it is always possible that it will go to shareholder suit verdicts down the road for how poorly this company has handled everything.  That 21+ million share short interest is going to be a factor.

Tyco International Ltd. (NYSE: TYC) is on deck for Tuesday as that day’s key report.  Estimates are $0.54 EPS and $4.32 billion in revenue, and next quarter estimates are $0.56 EPS and $4.25 billion in revenues.  This September quarter also marks its fiscal year-end with estimates of $2.29 EPS and $17.15 billion in revenues (almost a 15 P/E and under 1-times revenues).  Tyco is still active in security and is still somewhat misunderstood by many who consider it a large conglomerate before it broke itself up.  But shares are up over 100% from its 52-week lows, up over 100% from the March 9 close, and shares are up 33% from June 30.

Applied Materials Inc. (NASDAQ: AMAT) is on deck for Wednesday afternoon. The chip equipment maker, and now solar player, is the king of its sector to most traders and investors.  As cap-ex and equipment purchasing has greatly lagged the overall chip and tech recovery, what the company says for its outlook will potentially be key for evaluating semiconductor companies on their expenses.  Estimates are $0.03 EPS and $1.31 billion in revenues for its October quarter, which is also its year-end with estimates of -$0.15 EPS and $4.8 billion in revenues.  While many analysts expect a recovery for 2010, with estimates at $0.35 EPS and $6.14 billion in revenues, there is the notion of what to say about valuation.  With a loss for 2009 and with a P/E ratio of 35 for next year, the bulls have to bet that the semiconductor companies are going to hike orders well above what the official expectations reflect.  At $12.40, this is up almost 50% from March 9 and up about 12% from June 30.

Macy’s, Inc. (NYSE: M) is also the first of the big retail plays for the week.  The issue will not be on last quarter so much, but what it calls for in the coming and current holiday quarter.  Estimates for the last quarter are -$0.10 EPS and $5.2 billion in revenues.  But next quarter estimates are $1.11 EPS and $7.67 billion in revenues.  Talking about all the if-then scenarios for retail is something we just won’t do because you have already endured it for a year.  But the stock was just upgraded at JPMorgan and its same store sales were “only” down 0.8% in October.  We are also getting to the point that the year-ago comparable store sales will not look like as much of a disaster as what we have seen for the last year.  Still, valuation has to be brought up as it trades at about 18-times a normalized current year earnings expectation.  Macy’s shares are up over 200% from March 9 and are up 63% since just June 30.

Nordstrom Inc. (NYSE: JWN) is on deck Thursday.    Estimates are $0.37 EPS and $1.81 billion, but the current quarter we are in (next quarter estimates) for the key Holiday season is expected to be $0.59 EPS and $2.33 billion in revenues.  The issue here on valuation is that the stock trades at an expected 19.5-times Jan-2010 fiscal earnings and even about 16.5-times Jan-2011 estimates.  The good news for the sector is that the companies are getting to the point that the year-ago comparable store sales will not look like as much of a disaster as what we have seen for the last year.  Nordstrom’s shares are up over 150% from March 9 and are up over 70% since just June 30.

Wal-Mart Stores, Inc. (NYSE: WMT) is on deck for Thursday morning.  The retail king of the recession and DJIA component is expected to post $0.81 EPS and $99.8 billion in revenues.  The company is no longer a guidance or same-store-sales champion, but estimates for the coming Holiday quarter we are now in are $1.12 EPS and almost $114.4 billion in revenues.  Wal-Mart has been an incredibly poor performer of a stock despite its status of being a recession winner.  Shares are not even up 10% from the March 9 close and are up about 6% from June 30.  The company did recently announce its expansion plans that seemed impressive, and the one issue that the company does have going for it now is that there is far less anti-Wal-Mart sentiment now that so much of the country has become its client base whether it was intended or not.

Walt Disney Co. (NYSE: DIS) is on deck for Thursday after the close.  Estimates are $0.40 EPS and $9.26 billion in revenues, and the coming December quarter estimates are $0.41 EPS and $9.67 billion in revenues.  If you just assume a meeting of estimates for the last quarter and the Q4 period for its fiscal Dec-2009 year, the Mouse House trades with a current year ratio of about 16-times earnings (and about 15.3-times 2010 estimates).  There are many moving parts here, and the Marvel Entertainment, Inc. (NYSE: MVL) deal is a drop in the bucket.  Disney shares are up 82% since the March 9 close and up 22% sine June 30.

Be advised that these Thomson Reuters can and likely will change some as the week goes on after analysts have made their last-minute changes.

You can join our open email distribution list to get updates on top analyst upgrades and downgrades, top day trader alerts, IPO’s, secondary offerings, Warren Buffett and other guru activity, M&A and more.

JON C. OGG
NOVEMBER 8, 2009

Chinese interests and private capital will build a huge wind farm in West Texas. China-based wind turbine firm A-Power Energy Generation Systems (NASDAQ:APWR) will lead the project. It will cost as much sa $1.5 billion and could supply energy to nearly 180,000.

Senator Charles Schumer of New York State does not like the Texas project, although he might like it more if the turbines were destined for up-state New York. Schumer believes that $450 million in federal stimulus funds could go into the project from the government’s stimulus package. That would help to create as many as 3,000 jobs at turbine plants in China according Reuters.

Schumer wants to have the best and worst of the stimulus programs. He wants job creation and improved alternative energy prospects for America so it can break its addiction to fossil fuels. That may mean a sacrifice which is that China, the growing threat to US global economic dominance, will get a few jobs.

Schumer is naive, or is grand standing. Supplies for alternative energy has to come from somewhere and not all of its will not come from US manufacturers. That is a simple reality which cannot be changed.

Douglas A. McIntyre

We have long said that this Q3 period was likely to separate the men from the boys in the solar sector.  Unfortunately, none of the men looked stronger than the boys.  Tonight’s earnings report out of First Solar Inc. (NASDAQ: FSLR) only reiterates the notion that solar power companies are in many ways just leveraged bets on the price of oil.  First Solar posted $1.79 EPS on $480.9 million in revenues (excluding the Sarnia project with $58 million not recognized in Q3).  Thomson Reuters had estimates pegged at $1.74 EPS and $528.78 million in revenues.  The company noted a cost per watt drop of 2.3%, but the gross margin dropped faster by 5.8%.  And there are other reasons to be cautious here.

First Solar is roughly 11% of the key solar ETF in the Claymore/MAC Global Solar Energy (NYSE: TAN), and that is down 3.7% at $8.32 in the after-hours session.  The Market Vectors Solar Energy ETF (NYSE: KWT) is much thinner in trading volume and is indicated lower without much volume, but First Solar is about 8.6% of its weighting.  Many have hoped for a recovery in Energy Conversion Devices, Inc. (NASDAQ: ENER), but that is down almost 4% at $11.02 in the after-hours session and that is on the heels of a 4.5% drop during the normal trading session.

The solar leader issued guidance that is very disappointing to many of the solar bulls.  Q4 revenue guidance is $550 million to $600 million vs. $534.48 million expected by Thomson Reuters.  The new 2009 revenue range is $1.975 billion to $2.025 billion.  That is at the higher-end of a prior target from the company and just meets a $2.00 billion Thomson Reuters consensus target at the mid-point.

There are other negatives here.  The company says that its module pricing for 2010 is unclear and it still sees a potential change for solar business in Germany in 2010.  Also noted was Ontario requiring significant local content.

The company has a new CEO, Robert Gillette.  None of today’s woes are Mr. Gillette’s fault nor his problem.  He is taking over after years of unfettered growth and at a time when industry margins are contracting and as sector orders are getting more and more competitive.

It is very possible that tomorrow’s trading will be different than the after-hours session today after analysts and traders break these numbers down with the full impact.  But this trades now at over 6-times expected revenues and trades at roughly 20-times 2009 earnings.  At least that was before the near-15% drop to $129.00 in the after-hours session.

JON C. OGG
OCTOBER 28, 2009

We are seeing at least some significant moves from the company’s who have announced that they are grant recipients under part of the $3.4 billion Smart Grid pledge from the Obama administration day.  We are seeing the big moves in the companies which traders and investors believe will receive the direct orders from the utilities, and are even seeing gains down in the utilities and power companies who are getting direct grants.

Itron Inc. (NASDAQ: ITRI), for smart metering systems, was up 3% at $59.56 with a $2.38 billion market cap.  Comverge, Inc. (NASDAQ: COMV), for peaking and base load capacity solutions to electric utilities, operators, and electric markets, is up 10% at $12.95 with a $286 million market cap.  Echelon Corporation (NASDAQ: ELON) is up 7% at $14.70 with a $598 million market cap.

In the utility sector we are seeing the following moves:

• Consolidated Edison Inc. (NYSE: ED) up 0.3% at $41.47; $136 million grant vs. $11.4 billion market cap.
• Constellation Energy Group, Inc. (NYSE: CEG) up 0.4% at $32.03;  $200 million grant vs. $6.45 billion market cap.
• Duke Energy Corporation (NYSE: DUK) up 0.15% at $15.95; $200 million grant vs. $20.7 billion market cap.wins $200 million smart grid grant
• FPL Group Inc. (NYSE: FPL) down 2.2% at $50.95; $200 million grant vs. $21 billion market cap.
• NV Energy, Inc. (NYSE: NVE) up 1.3% at $11.52; $138 million grant vs $2.7 billion market cap.
• Pepco Holdings, Inc. (NYSE: POM) up 0.4% at $14.51; $168 million grant vs. $3.2 billion market cap.
• Southern Company (NYSE: SO) up 0.35% at $32.69; $165 million grant vs. $26 billion market cap.

Many of the beneficiary companies have not reported yet their awards.

Jon C. Ogg
October 27, 2009

Wind energy is supposed to be one of the key puzzle pieces in the quest to get off the dependence of foreign energy sources.  Yet a fairly disturbing story from the Daily Camera in Boulder. Colorado last night highlighted how all the federal grant money and all the alternative energy money in the world will still not be enough to keep every player alive.  Entegrity Wind Systems Inc. is a Canada-based wind turbine manufacturer that has based some operations in Boulder, CO.  And now the company has gone bankrupt.  In now way will this kill the efforts and ambition of the two giants in the U.S.:  General Electric Co. (NYSE: GE) and Siemens AG (NYSE: SI).  It might even be good news for the giants as one less future competitor may be gone.  However, it does highlight at least some of the potential risks and ongoing risks for three smaller companies:

• Zoltek Companies Inc. (NASDAQ: ZOLT), which makes carbon fibers for wind turbines and other key infrastructure;
• Otter Tail Corporation (NASDAQ: OTTR), a small conglomerate in Minnesota with wind operations;
• Broadwind Energy, Inc. (NASDAQ: BWEN), which manufactures and sells high precision gears for wind turbines.

Even though these three companies are very small compared to the giants, they are also relatively giants if you compare these to the bankrupt company.  And in no way is there a direct tie that we are aware of.  This bankruptcy might even benefit all existing players because it makes them all have one less competitor if this bankruptcy goes along the same path as many other bankruptcies that go from protection to liquidation.

The bankruptcy news from Entegrity Wind Systems was actually out of Canada over recent days but is small enough that it flew under the radar.  The article noted that New Brunswick-based A.C. Poirier & Associates Inc. is going to be the receiver and manager of Entegrity during the bankruptcy.  Where this gets a bit disturbing for the green crowd is that the debt is just not that large considering the hype and hope for the field of wind energy.  And for the field of alternative energy.

Listed was a debt of over $3 million to Mercantile Finance Services in Toronto and over $6 million to other institutions.  Then there is the widening loss because of manufacturing problems in some of the turbines.

You can read the full story from the Daily Camera with many more issues outlined in the piece over the last two weeks since the bankruptcy filing in Canada.  This may be of little or no concern to the larger players.  In fact, this is just one less rodent to deal with as far as they are concerned.  But it also highlights the risks that are still present in an emerging field full of hope and hype.  You could even take the same approach in solar, where this earnings season should set apart the children from the adults in that sector.

Jon C. Ogg

Applied Materials, Inc. (NASDAQ: AMAT) appears to not be slowing down on its solar ambitions, or at least not as much as we might have all guessed about six months ago when new expansions were being canned and when oil was at far lower prices.  This morning came an Applied Materials announcement that the company had opened the world’s largest non-governmental advanced solar research and demonstration facility in Xi’an, China.  We have not compared this to other large solar players, but the size of the labs and office buildings was listed as covering more than 400,000 square feet.  The site also contains an entire Applied SunFab™ thin film manufacturing line and a complete crystalline silicon pilot process, which are configured to closely simulate customer fabrication environments.

Today’s news is not a financial or guidance impact-event based upon its intent.  But it is the continued commitment to the solar industry at a time when many of the more junior players are still reeling from the financial crisis, lower orders, lower margins, and lower cost-benefit comparisons to more traditional energy sources.

The real direction for how solar shares trade will come later in the week when First Solar, Inc. (NASDAQ: FSLR) reports its earnings and a brief top 10 earnings preview.  We have seen a very mixed bag in the group, and with First Solar being the biggest of the US-based pure-play solar stocks it will set a benchmark for drawing a line between the men and the boys in the sector.

JON C. OGG
OCTOBER 26, 2009