Dreaded ‘Going Concern’ Notes Head To Alternative Energy (AVR, BCON, EPG, VRNM)

247wallst — Tue, 17 Mar 2009 13:02:07 +0000

If there is one phrase that a company does not want to see in its annual report, it is “GOING CONCERN.” This hinges on a company’s ability to operate financially as a viable business. March is the month where we see many “going concern” notes from auditors, but what makes this interesting is that we are seeing this phrase applied to alternative energy companies. They are supposed to be the thing of the future.

Aventine Renewable Energy Holdings, Inc (NYSE: AVR) looks like a disgraced Samurai disemboweling himself. The ethanol producer is in default of debt covenants and has said it needs to raise additional funding to avoid bankruptcy. And its auditors raised a “going concern” doubt. We have noted this corn vs. crude argument for quite some time, and that is only getting worse as these have all become nonviable. This is a penny stock, but it is getting cut in half.

Beacon Power Corporation (NASDAQ: BCON) was supposed to be one of the fly-wheel winners in advanced battery technologies. It also recently took a hit after it raised cash. Yet the annual report yesterday said that the company will need to raise more cash to satisfy “Our continuation as a going concern.” That doesn’t mean it is there quite yet, but it does need funding from 2009 to 2011.

Environmental Power Corporation (NASDAQ: EPG) develops, owns, and operates renewable energy production facilities in the United States. Its annual report noted a going concern as well, yet the company said it is pursuing a number of financing avenues. The leash looks pretty short as it said it “hopes to obtain the financing it requires by the end of the first half of 2009.”

Verenium Corporation (NASDAQ: VRNM) is down over 10% this morning at $0.345. The cellulosic ethanol and high-performance specialty enzymes developer disclosed the going concern note.

Let’s hope that if these firms head to D.C. with their hat in hand to ask President Obama for money that they don’t fly a private jet.

JON C. OGG

Posted in Accounting, Alternative Energy, Annual Report, Green Biz Tagged: AVR, BCON, EPG, VRNM

Top Analyst Upgrades & Downgrades (ACM, AXYS, CTAS, CVD, GILD, PPDI, VISN, EPG, VTIV)

247wallst — Tue, 23 Dec 2008 07:38:35 +0000

It is getting pretty thin in major analyst coverage as firms are encouraged to go easy on major year-end calls barring anything unexpected. These are the top analyst upgrades, downgrades, and new coverage calls we have seen this Tuesday morning:

AECOM (ACM) Started as Outperform at Baird.
Axsys Technologies (AXYS) Raised to Outperform at Morgan Keegan.
Cintas (CTAS) Started as Overweight at JPMorgan.
Covance (CVD) Started as Buy at Piper Jaffray.
Gilead (GILD) Started as Buy at Stanford Group.
PPD Inc. (PPDI) STarted as Buy at Piper Jaffray.
VisionChina Media (VISN) Strated as Buy at Piper Jaffray.
Environmental Power Corp. (EPG) Cut to Neutral at Merriman Curhan Ford.
inVentiv Health (VTIV) Cut to Hold at Jefferies.

Jon C. Ogg
December 23, 2008

Posted in Analyst Calls Tagged: ACM, AXYS, CTAS, CVD, EPG, GILD, PPDI, VISN, VTIV

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Dreaded ‘Going Concern’ Notes Head To Alternative Energy (AVR, BCON, EPG, VRNM)

Top Analyst Upgrades & Downgrades (ACM, AXYS, CTAS, CVD, GILD, PPDI, VISN, EPG, VTIV)