Posts related to ‘Utilities’

Pimco’s Gross Says Buy Utilities

PIMCO’s chief Bill Gross puts out a regular letter in which he shares his investment advice with the public. Invoking the memory of Will Rogers, a Depression-era comic, Gross describes the recent upheaval in the financial markets as a period where investors needed to concern themselves with the return of their money, rather than return on their money.  After sharing an amusing (if not somewhat disturbing) story of having his wife emptying their bank accounts at the height of the crisis, Gross argues that it is time for investors to concern themselves with the problem of earning some return again.   Read More »

Posted on: November 19, 2009 – 7:31 pm in Economy, Utilities

Reviewing the New Smart Grid ETF (GRID, PBD, PZD, PBW, QCLN)

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).
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Posted on: November 18, 2009 – 11:40 am in ADR, Alternative Energy, ETF, Editor's Picks, Green Biz, Infrastructure, Utilities, , , , ,

AES Debate: China’s Infrastructure Grab (AES)

bull-and-bear-imageChina is at it again buying key infrastructure access.  AES Corp. (NYSE: AES) disclosed on Friday, along with earnings, that the company was raising significant cash.  This is a capital raise which also may ‘raise some eyebrows’ because the company is selling a 15% stake to China’s sovereign wealth fund, China Investment Corporation.  The stake sale will bring in $1.58 billion for expansion of global projects.  AES also announced a Letter of Intent to sell a 35% minority stake in its global wind generation business valued at $571 million on top of the stake sale.
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Posted on: November 7, 2009 – 11:59 am in China, Emerging Markets, Infrastructure, Mergers and Buy Outs, Private Equity, Regulation, Utilities,

Bill Gates Gets Further Entrenched in Waste Sector (RSG, WM, MSFT, BRK-A)

Bill Gates ImageIf you thought that Bill Gates might have an ambition beyond just passive investing in the garbage and waste disposal sector, you might be correct.  Bill Gates’ Cascade Investment, L.L.C. and the Bill & Melinda Gates Foundation Trust own a collective share of about 15% of Republic Services, Inc. (NYSE: RSG).  Republic is the #2 waste management player now that it acquired Allied Waste Industries behind the dominant Waste Management Inc. (NYSE: WM).

Today came the news that Gates’ confidant Michael Larson has joined Republic’s Board of Directors effective October 28, 2009, and Larson will also become a member of Republic’s Compensation Committee and its Nominating and Corporate Governance Committee.  Larson is the Business Manager of Cascade Investment and is the Chief Investment Officer for the Bill & Melinda Gates Foundation Trust.  In short, Bill Gates (or his investment funds) is not just going to be a mere large investor in the garbage sector.  That is an entrenchment into a company, and there seems to be a reason for it.
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Posted on: October 30, 2009 – 11:40 am in Activist Investor, Buffett, Business Services, Private Equity, Utilities, , , ,

The Smart Grid Surge Hitting Home (ITRI, COMV, ELON, ED, CEG, DUK, FPL, NVE, POM, SO)

Power Lines ImageWe 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.
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Posted on: October 27, 2009 – 3:37 pm in Green Biz, Politics, Utilities, , , , , , , , , ,

Siemens Shows Wind Energy is Alive (SI, DUK, BAM, GE, ZOLT, BWEN)

Wind Energy PicSiemens AG (NYSE: SI) is showing that wind energy is not as dead as many might have you believe. This morning the company issued a press release showing that wind power orders are still possible. The company said that it had been awarded 6 new wind turbine orders in just the last month that come to more than $900 million in orders. While this is not exactly breaking news that will influence a quarter or a year, it shows that there is still some appetite out there for wind power that could help other wind power players domiciled in the U.S.

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Posted on: October 13, 2009 – 11:30 am in Alternative Energy, Conglomerates, Green Biz, Utilities, , , , , ,

Stocks That Missed the Rally (ABT, MO, AWK, BKC, ENER, GENZ, KR, ORB, WMT, LEAP, PCS)

Here we are going into yet another earnings season.  We saw Monday how the market has rallied significantly from the March lows and the major indexes are even up in positive territory for the 2009 calendar.  The DJIA is up 51% from its absolute lows of March, and the S&P 500 has rallied more than 61% from its absolute lows in March.  If you look at the December 31, 2008 closing bell levels, the DJIA is now up about 12.75% and the S&P 500 is now up more than 19% year-to-date.

But almost as always, there are still some key very large and/or very active stocks which have not recovered anywhere close to the same amounts with the overall stock markets.  Some of these lagging stocks are Abbott Laboratories (NYSE: ABT), Altria Group Inc. (NYSE: MO), American Water Works Company, Inc. (NYSE: AWK), Burger King Holdings Inc. (NYSE: BKC), Energy Conversion Devices, Inc. (NASDAQ: ENER), Genzyme Corp. (NASDAQ: GENZ), Kroger Co. (NYSE: KR), Orbital Sciences Corp. (NYSE: ORB) and Wal-Mart Stores Inc. (NYSE: WMT).  Two similar situation stocks that are Leap Wireless International Inc. (NASDAQ: LEAP) and MetroPCS Communications Inc. (NYSE: PCS).  We wanted to explore the forward values and relative performance, and the consensus estimates based upon Thomson Reuters data.  Only two of these stocks have market capitalization rates under $1 billion, and almost all are very actively traded and well known in their sectors.
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Posted on: October 12, 2009 – 5:03 pm in Biotech, Charts, Consumer Goods, Defensive Stocks, Dividend, Editor's Picks, Retail, Utilities, Value Investing, Water, , , , , , , , , , ,

Warren Buffett, Wind Investor? (BRK-A, GE)

Buffett ImageMid-American Energy, a holding of Berkshire Hathaway Inc. (NYSE: BRK-A) and a holding of Warren Buffett, is about to get into the U.K. offshore wind power business if the reportsfrom the weekend in the U.K’s Times Online are accurate. The new plan is meant to go off in phases off the coast of Kent in the U.K. and this round is said to be approximately 1 billion pounds.  That is $1.61 billion in today’s dollars and is actually only about one-twelfth of the total estimated size of the auctions that will be made in the coming months and years.
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Posted on: September 21, 2009 – 11:06 am in Alternative Energy, Buffett, Infrastructure, Utilities, ,

The Lame Blame on Short-Termism

Bull and Bear ImageThere is a very silly notion being brought to you by the Aspen Institute Business & Society Program’s Corporate Values Strategy Group and what is admittedly a rather impressive list of names joining it. It is a call to end “Short-Termism” in the financial markets.  Imagine a long-term financial utopia where investors did not have to trouble themselves with the day in and day out wranglings of the stock market or the economy.

Imagine if quarterly earnings, monthly same-store-sales, quarterly or annual guidance, key turns in the demand cycle, interruptions or obsolescence of a business model and other issues were just able to be smoothed over.  Now imagine investing in this sort of a climate.  This idea sounds great on paper and probably looks great on economic models and charts that are the basis for the notion because it goes along with the current theme of thinking for the long-haul and doing what is best for everyone else.  The problem is that this is the most silly and perhaps dangerous notion for the public to embrace.  This is a path for investors large and small to get drummed, slapped, duped, discouraged and a few other things we decided not to print.
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Posted on: September 9, 2009 – 12:10 pm in Accounting, Activist Investor, Brokerage Firms, Buffett, Economy, Editor's Picks, Exchange News, Labor & Unions, Regulation, Research, Shareholder Issues, Utilities, Value Investing, , , , , , ,

Still Too Many Mixed Solar Signals (FSLR, ENER, AMAT, CSIQ, VECO, ED, WFR)

Solar Roof ImageThere are many things that help solar power and orders for the sector, but arguably higher energy prices and tax incentives or subsidies probably dwarf the overall economic situation.  There seems to be a steady series of ups followed by more downs, and you can blame part on the economy and on energy prices.  First Solar Inc. (NASDAQ: FSLR), Energy Conversion Devices, Inc. (NASDAQ: ENER), Applied Materials Inc. (NASDAQ: AMAT), Canadian Solar Inc. (NASDAQ: CSIQ), Veeco Instruments Inc. (NASDAQ: VECO), Consolidated Edison Inc. (NYSE: ED), and MEMC Electronic Materials Inc. (NYSE: WFR) have all been in solar light with news.
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Posted on: September 9, 2009 – 10:25 am in Alternative Energy, Green Biz, Utilities, , , , , , ,

Can Verizon Raise Dividend Indefinitely? (VZ, T)

Verizon LogoVerizon Communications Inc. (NYSE: VZ) did not immediately rise despite the announcement from the company that it was raising its quarterly dividend.  Most dividend hikes do not raise the price of stocks immediately, but this 3+% rise in the dividend is an interesting one because this is the third straight year that the company has raised its dividend.  The new dividend is $0.475 per share per quarter,  up from a $0.46 dividend for the last four quarters and a $0.43 dividend before that.

Some may point out that this is actually the smallest dividend hike compared to the two prior dividend hikes.  Frankly, in today’s business and economic climate that is a whiners’ argument that is no different than lottery ticket winners complaining about all the taxes they will have to pay.  What we want to see is how much it can grow down the road.   And just as importantly, we wanted to see how this stacks up against rival AT&T Inc. (NYSE: T) and its dividend history and the future dividends.
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Posted on: September 3, 2009 – 2:30 pm in Defensive Stocks, Dividend, Telecom, Utilities, Value Investing, ,

USEC Wants a DOE Do-Over (USU)

Carbon Emission ImageUSEC Inc. (NYSE: USU) has just announced that it is requesting that the Obama administration “review further the economic recovery and national and energy security benefits of providing a loan guarantee for the American Centrifuge Plant.”  This announcement is of little surprise.  Yesterday’s news severely changed how Wall Street and Main Street will look at the role of  nuclear power as an alternative to foreign energy.
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Posted on: July 29, 2009 – 3:51 pm in Nuclear, Politics, Utilities,

NJ Solar Project is World’s Largest Of Its Kind (PEG)

petra solar posterPetra Solar, Inc. may be an unknown company to many investors.  But an announcement from it and Public Service Enterprise Group Inc. (NYSE: PEG) may soon change that.  The companies both released data on an approval from the New Jersey Board of Public Utilities to invest $515 million in 80 megawatts of solar projects.

Petra Solar is a South Plainfield, New Jersey-based company which designs and manufactures the SunWave™ solar electric system for utility, commercial, and residential installations. These systems scale from a single panel to multi-megawatts, and the company calls this “the most deployable, cost effective and intelligent solar solutions in the industry.” Petra said that the contract is about $200 million to it over a three-and-a-half year period with PSE&G, and it will make the units for the 200,000 poles under the agreement.

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Posted on: July 29, 2009 – 3:18 pm in Alternative Energy, Green Biz, Utilities,

Nuclear Stocks Reacting to USEC Woes (USU, CCJ, NLR, URZ, DNN, URRE, PESI)

Carbon Emission ImageWe have already covered the nuclear winter blow-up over at USEC Inc. (NYSE: USU) after the DOE declines to issue a guarantee for it long-pending loan application.  What we wanted to see is what the fallout is in the rest of the nuclear sector.  As we expected, all of the stocks are down.  The good news is that these are not down anywhere as much we would have guessed based upon the sharp negative reaction for USEC shares.  This has Cameco Corp. (NYSE: CCJ), Market Vectors Nuclear Energy ETF (NYSE: NLR), and others on the defensive.
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Posted on: July 28, 2009 – 11:26 am in Nuclear, Trading Alert, Utilities, , , , , , ,

Beacon’s $43 Million Loan, Possible Game-Changer (BCON)

Money Stack ImageThis morning we caught an alert for volume and trading activity at VSInvestor.com in Beacon Power Corporation because of a government award of a loan commitment.  This has now been confirmed.  Beacon announced that it has received a conditional commitment from the Department of Energy for a loan guarantee of approximately $43 million.  Keep in mind that this is subject to negotiation and completion of a number of contracts and conditions.
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Posted on: July 2, 2009 – 9:44 am in Alternative Energy, Cult Stock, Green Biz, Utilities,

Analyst Looks More Positive on Utilities (AEP, DUK, EXC, PCG, PEG, UTL, XEL, ED, FPL, PNW, PGN, SCG, SO, IDU)

Power Lines ImageOppenheimer is making a new call in the utility sector.  It looks a bit mixed between positive and somewhat cautious calls this morning, but it is important to note that many of these utilities are still in the lower half of the trading range of their last 52-weeks and some are significantly off of highs.

The new OUTPERFORM rated stocks are American Electric Power Co., Inc. (NYSE: AEP), Duke Energy Corporation (NYSE: DUK), Exelon Corporation (NYSE: EXC), PG&E Corp. (NYSE: PCG), Public Service Enterprise Group Inc. (NYSE: PEG), UNITIL Corporation (NYSE: UTL), Xcel Energy Inc. (NYSE: XEL).

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Posted on: June 30, 2009 – 7:39 am in Analyst Calls, Utilities, , , , , , , , , , , , , ,

Goldman Sachs Mixes Calls in Oil and Utilities (RIG, PTEN, HAL, OIS, NBR, DO, FTI, WR, NRG, NVE)

Oil Well ImageGoldman Sachs has made several key upgrades and downgrades this morning in the utility sector and in the oil patch.  While the utility sector was raised to attractive, some of the other calls seem more mixed on the surface in the oil patch.

Transocean (NYSE: RIG) was one of the few real upgrades as shares were raised to Buy from Neutral.  Patterson-UTI (NASDAQ: PTEN) and Halliburton (NYSE: HAL) were cut to Neutral, while Oil States International (NYSE: OIS) was cut to Sell.  Nabors Industries (NYSE: NBR) was cut to Sell from Neutral.  Diamond Offshore (NYSE: DO) and FMC Technologies (NYSE: FTI) were both upgraded, but only to Neutral from Sell.

Westar Energy (NYSE: WR) and NRG Energy (NYSE: NRG) were both raised to Buy, while NV Energy (NYSE: NVE) was cut to Neutral.

Jon C. Ogg
June 25, 2009

Posted on: June 25, 2009 – 7:22 am in Analyst Calls, Oil & Gas, Utilities, , , , , , , , , ,

FuelCell’s Capital Raise, Dilutive But Opportunistic (FCEL)

Money Stack ImageFuelCell Energy Inc. (NASDAQ: FCEL) is getting hammered this morning.  The developer and manufacturer of fuel cell power plants for electric power generation announced a $24.2 million financing pact this morning.  The company sold 6.7 million shares of common stock at $3.59 per share via Canaccord Adams Inc. and Lazard Capital Markets.
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Posted on: June 16, 2009 – 8:46 am in Alternative Energy, Green Biz, Secondary Offering, Utilities,

FuelCell and POSCO in Korea: When Contracts Really Add Up (FCEL

Solar Panel PicFuelCell Energy Inc. (NASDAQ: FCEL) is screaming higher in early trading before the bell, and it is easy to see why.  The company announced that POSCO Power ordered 30.8 megawatts of FuelCell Energy modules and components, with estimated value of $58 million.  This won’t help in the immediate future, but this adds to future orders.
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Posted on: June 9, 2009 – 8:35 am in Alternative Energy, Green Biz, Utilities,

When Power Companies Underwrite Appliance Recycling (ARCI, XEL)

Money Stack ImageAppliance Recycling Centers of America Inc. (NASDAQ: ARCI) is far from a household name.  Xcel Energy, Inc. (NYSE: XEL) is known, literally, if you live in parts of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin.  The large utility has engaged the tiny company to provide refrigerator recycling services for its residential electric customers in Colorado and New Mexico starting on June 1, 2009 through December 31, 2010.
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Posted on: May 26, 2009 – 12:21 pm in Green Biz, Housing, Utilities, ,