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Last August, the US Environmental Protection Agency (EPA) ruled that a proposed coal-fired power plant in Utah did not need to file for a clean-air permit because the emissions from the plant were not regulated pollutants under the Clean Air Act. Carbon dioxide, which all of us expel every time we exhale, is not a pollutant under the EPA regulations. Thus, if a power plant is going to emit carbon dioxide, it’s just breathing.
Posts for Ticker ‘FTEK’
CO2 Restriction Easing on Coal-fired Power Plants? (BTU, ACI, MEE, CNX, FTEK)
Short Sellers Losing Conviction in Alternative Energy (CSIQ, CPST, CLNE, ESLR, FSLR, FTEK, FCEL, HOKU, LDK, SPWR, STP)
Many traders and short sellers have loved targeting solar power and other alternative energy stocks. Interestingly, bets against these companies have not risen dramatically even though many of them are under pressure from falling energy and commodities prices. As you will see below, there was only one company with a significant rise in short interest.
Short Seller Changes in Alternative Energy (CSIQ, CPST, CLNE, ESLR, FSLR, FTEK, FCEL, HOKU, LDK, SPWR)
Many traders and short sellers have loved targeting solar power and other alternative energy stocks. What is interesting is that the bets against these companies did not show a larger increase since many of them have been under pressure from falling energy and commodities prices..
Alternative Energy Aug 29 Aug 15 Change
Canadian Solar Inc. (CSIQ) 4,792,383 4,105,862 16.72%
Capstone Turbine Corp. (CPST) 26,868,541 27,148,261 -1.03%
Clean Energy Fuels Corp. (CLNE) 3,157,778 3,370,936 -6.32%
Evergreen Solar, Inc. (ESLR) 29,577,222 28,600,712 3.41%
First Solar, Inc. (FSLR) 4,118,065 3,932,851 4.71%
Fuel Tech, Inc. (FTEK) 8,967,558 9,409,720 -4.70%
FuelCell Energy (FCEL) 13,231,020 13,547,382 -2.34%
Hoku Scientific (HOKU) 3,408,545 3,264,070 4.43%
LDK Solar Co. Inc. (LDK) 12,810,785 14,263,002 -10.18%
SunPower Corporation (SPWR) 18,696,656 18,939,191 -1.28%
Jon C. Ogg
September 11, 2008
Short Sellers Targeting Solar & Alternative Energy (AKNS, ASTI, CSIQ, CPST, ESLR, FTEK, OTTR, SPWR)
The overall short interest on NASDAQ stocks was actually pretty dull from the end of April to Mid-May, or at least that is the case until you go straight into looking at solar stocks and other alternative energy stocks. Many of these have seen their stock prices rise sharply over the last few months. Many were viable with $70 or $80 oil, but after $100 and then $130 oil you can imagine that short sellers are targeting the most up or most speculative names.
MAY 15 APRIL 30 CHANGE
Akeena Solar, Inc. (NASDAQ: AKNS) 3,280,165 3,042,025 7.83%
Ascent Solar Tech (NASDAQ: ASTI) 2,106,784 1,889,624 11.49%
Canadian Solar Inc. (NASDAQ: CSIQ) 4,311,126 3,562,672 21.01%
Capstone Turbine (NASDAQ: CPST) 12,860,110 11,491,389 11.91%
Evergreen Solar (NASDAQ: ESLR) 22,122,144 20,622,446 7.27%
Fuel Tech, Inc. (NASDAQ: FTEK) 7,488,443 6,443,583 16.22%
Otter Tail Corp. (NASDAQ: OTTR) 2,126,732 1,960,651 8.47%
SunPower Corp. (NASDAQ: SPWR) 15,231,873 14,016,469 8.67%
As you have seen, most of these are solar plays, but some aren’t. Fuel Tech helps power plants burn cleaner coal, and it has had more problems over the last year on making its earnings numbers. Otter Tail is a diversified "General Eclectic" but it has become more well known for making wind towers of late; and it hasn’t hurt that Bill Gates has been a holder for quite some time. Capstone Turbine has been our largest winner in our weekly "10 Stocks Under $10" newsletter in the sector with a 200% gain; and it is still an active hold in that group. We also just featured Akeena Solar over at VSinvestor.com for a highly unusual volume spike alert.
These are the ones we screened with the largest short interest increases in the sector seem to be more speculative names, although there were some that saw decreases and we excluded those from this list. Out of the alternative energy or "cleaner" energy stocks we follow, these were the ones with the largest increase in the short interest.
You can join our open email distribution list to hear about other issues in short interest, secondary offerings, IPO’s, private equity, special financings.
Jon Ogg
May 28, 2008
Cramer Revisits Green & Alternative Energy (FSLR, FWLT, SGR, BWA, WFR, FTEK, TTEK, OMG)
Because of Earth Day and because of a strong performance, Jim Cramer came on CNBC’s MAD MONEY tonight after a week off and said he wanted to revisit which ones to buy and hold now that the entire portfolio he gave is up some 76.8% (or up about 35% on an ex-First Solar basis). Down below you can see the updates from the past to see what he said, but first are the ones he reviewed:
- First Solar (NASDAQ: FSLR) up over 300%, but it doesn’t need subsidies. He thinks the new administration will bring it in. The payback is cheaper and faster because it doesn’t need silicon. Cramer noted that this was to solar what Intel was to chips. He wants to stick with it.
- Foster Wheeler (NASDAQ: FWLT) has risen 97% and is his favorite infrastructure play, which should work even higher. Cramer thinks this one can be bought now without a pullback.
- Shaw Group Inc. (NYSE: SGR) is the play on nuclear energy and he would stick with this one.
- BorgWarner Inc. (NYSE: BWA) was play for clean emissions, but he thinks this one should be dumped.
- MEMC Electronic Materials Inc. (NYSE: WFR) is also up big but Cramer thinks this should be dumped because of recent execution problems.
- Tetra Tech (NASDAQ: TTEK) was a water play that rose only about 1.6%, but it is becoming the right place because of rapidly deteriorating domestic infrastructure. It now has a wind energy company. He thinks you can buy it now.
- FuelTech (NASDAQ: FTEK) has come back off since he said SELL, but now you can reload on it. He said sell it once, and he thinks it is going up on increasing efficiency of coal plants. He also likes that insiders have been buying stock recently.
- OM Group (NYSE: OMG) is an emissions play, but now that it has recovered you can take profits in OM Group or just sell it.
Here was the summary for Cramer’s "original" Alternative Energy & Green Stocks if you want to compare then to now.
We have been highlighting some of the smaller green tech and alternative or renewable energy picks in our own weekly "10 Stocks Under $10" newsletter. Of those picks, our Capstone Turbine Corp. (NASDAQ: CPST) is up roughly 150% and the only "selling" we have yet to note is perhaps some profit taking to lock in a portion of your gains, but we think this one is heading higher. Our other pick has only been on the list in the under $10.00 newsletter for a few weeks, and it is already up about 30% since. We actually just raised our expectations on this one.
Jon C. Ogg
April 21, 2008
Lazard Defends FuelCell Energy Ahead of Earnings (FCEL, FTEK)
Lazard Capital Markets’ Sanjay Shrestha has come out defending FuelCell Energy (NASDAQ: FCEL) ahead of tomorrow’s earnings report. The firm expects another strong quarter from the company. It also notes a an attractive risk/reward metric and is maintaining its BUY rating.
Lazard has forecast revenues of $17 million and a loss per share of $(0.26), versus consensus of $16.2 million and $(0.26). Here are some pending projects noted by Shrestha: "We expect FuelCell to report another solid quarter of additional bookings traction in key markets and ongoing cost/ kW reductions. During the quarter, the company announced more than 9MW of new awards, including a 3.9MW contract with the Linde Group and a 4.8MW order from POSCO Power."
Lazard is also looking for an update on the CT150 projects totaling 16.2MW recently approved by the Connecticut Department of Public Utility Control, and anticipates an update on the status of the 19.6MW Danbury "Triangle" project.
This target price of $15 represents more than a 100% gain from today’s prices and this stock has seen a 52-week trading range of $6.15 to $13.14. This target reflects a 30x multiple on two potential revenue scenarios and EPS of $0.90-$1.20 over the next 4-6 years.
We would also note that Fuel Tech, Inc. (NASDAQ: FTEK) is scheduled to report earnings after the close tomorrow. We recently gave a full preview on this one, and the companies are similar in name only.
Jon C. Ogg
March 4, 2008
The Business Day In Global Warming (CSIQ, FTEK, TSL, GE, GOOG, CS, SOPW, AKNS, JASO, ENER, CPST)
Canadian Solar (NASDAQ: CSIQ) issued and sold $75 million in 6.0% Convertible Senior Notes due 2017 in a private placement on December 10, 2007, and in a filing today investors were given the right to resell their notes and/or converted shares. This one also reports earnings on Wednesday of this week.
We’d note that Fuel Tech (NASDAQ: FTEK) is soon to report earnings, this weekend we issued a full earnings preview. Also, we’ll see earnings out of Trina Solar (NYSE: TSL) on Tuesday.
Cnet News ran a great piece today showing how the American Council on Renewable Energy organized the press conference for Tuesday to publicly lobby for extended tax breaks and credits for renewable energy firms beyond 2008. Well-known energy investors and business people from General Electric (NYSE: GE), Credit Suisse (NYSE: CS), Google (NASDAQ: GOOG) and others are said to be involved.
SCHOTT AG of Germany broke ground today on a $100 million initial investment for a 200,000 square foot manufacturing facility outside of Albuquerque, New Mexico for its SCHOTT Solar, Inc. unit.
A boutique research firm called Global Hunter initiated coverage of Solar Power (OTCBB: SOPW) and Akkena Solar (NASDAQ: AKNS) with a neutral rating on each. In another call, Zacks.com showed an interview with one of its analysts talking up JA Solar (NASDAQ: JASO) and Canadian Solar (NASDAQ: CSIQ), as well as Energy Conversion Devices (NASDAQ: ENER). That can be seen at Zacks.com
Capstone Turbine Corporation (NASDAQ:CPST) announced that RSP Systems completed installations of New York’s first microturbines in four location under the City’s new rule for residential and commercial use. This stock is up roughly 50% since we added this one to our "10 Stocks Under $10" newsletter, and we haven’t yet taken our foot off the gas…. nor off the turbine.
As a reminder, whether you prefer the term "Global Warming" or "Climate Change" is not the issue as far as 247WallSt.com covers it. Green business has become big business, and this affects many public companies today.
Jon C. Ogg
March 3, 2008
Fuel-Tech Readies For Earnings (FTEK)
On Wednesday we’ll get to see earnings out of Fuel-Tech, Inc. (NASDAQ: FTEK). The estimates for the combustion engineering solutions provider (cleaner coal) from First Call are $0.17 EPS and $28.04 million in revenues. Next quarter estimates are $0.12 EPS and $25.39 million in revenues. Estimates for fiscal 2008 are $0.55 EPS on $107.87 million in revenues. As there were discrepancies and as many analysts have changed targets on this one ahead of earnings, we’ll make an update on any key changes before the earnings release.
Analysts have an average price target north of $31.00, still some 50% north of current prices. Fuel-Tech’s 52-week trading range is $14.15 to $38.20. This remains one of the key potential beneficiaries of high coal demand and the need to clean up the coal process. But its valuations and its stage where it is still dependent upon individual contracts have plagued the company for some time. This is one of the more volatile names in all of the cleaner energy and alternative energy sectors, and its guidance is more important than current numbers for determining forward valuations.
Jon C. Ogg
March 1, 2008
The Business Day In Global Warming (LDK, CPST, USU, FPL, ZAAP, FTEK, HVAG)
LDK Solar Co. (NYSE:LDK) stock fell 7% to $30.05 in the last hour of trading today after yesterday’s earnings, but it was mainly a lackluster guidance. This was actually up in after-hours trading yesterday. This solar player had already warned us about the same issues back in January, so this shouldn’t have been that big of a surprise.
Capstone Turbine (NASDAQ: CPST) scored another small gain of 2% or 3% before coming off at the end of the day, after a huge run yesterday. This remains our own top pick of the small emerging alternative energy players, and this now represents a 50% gain for our "10 Stocks Under $10" weekly newsletter sent out every Monday.
FPL Group Inc. (NYSE: FPL) had a power outage today in much of South Florida for what was being reported as "a loss of off-site power" without the cause being elaborated on besides workers taking the nuclear reactor down.
USEC (NYSE: USU) was horrible today, and many of you might not like "nuclear" as one of our "green" energies. But a new uranium enrichment facility in Ohio is running 50% more expensive than budget. Sounds to me like someone forgot to hedge steel and metals costs.
In an announcement last night, electric car maker ZAP (OTCBB:ZAAP) said it has filed a lawsuit against DaimlerChrysler, Smart Car and various officials on October 28, 2005, alleging severe misconduct attempting to destroy ZAP’s business model to bring the affordable and environmentally friendly smart for two to the US public.
Fuel-Tech, Inc. (NASDAQ: FTEK) reports earnings next week, and this one has had one heck of time getting off the floor. It is a great company that helps clean coal into much less nasty power, but its valuations may still be excessive in a time when low-risk is still preferred. Coal is unfortunately going to be with us for another generation or more.
T. Boone Pickens gave a prediction that oil was coming off as much as $15/barrel in Q2 just last week. He admitted he was short, but we were told by some oil traders this last weekend that his fund is doing far worse than his -5% he admitted to in energy.
High Velocity Alternative Energy Corp. (OTC-PK: HVAG) lost half of its value after filing for Chapter 11 bankruptcy last night. That’s the wrong way to go for an alternative energy play, and it is obviously poor management that can’t make alternative energy fly in this environment.
Point Carbon, a world-leading provider of independent analysis and consulting services, has predicted that the global carbon market will see 4.2 billion tons carbon emissions transacted during 2008, up 56% from 2007, and at today’s prices that would make the market worth $92 billion after converting Euros.
As a reminder, whether you prefer the term "Global Warming" or "Climate Change" is not the issue as far as 24/7 Wall St. covers it. Green business has become big business, and this affects many public companies today.
Jon C. Ogg
February 26, 2008
Backward & Forward, Cramer In 2007 To 2008
2007 was one volatile year and for now it appears that will be the norm for at least the start of 2008. Everyone’s favorite market pundit or least liked pundit is obviously Jim Cramer. If you love Cramer or can’t stand him it really doesn’t matter. He signed a new multi-year deal with CNBC recently. Here are some of his major calls this year that will still be referred to in 2008:
Here were Cramer’s TOP 9 STOCKS FOR 2007, with a call broken down for each one. Borat would say HI FIVE on some and NOT SO NICE on others, as would be expected. Cramer’s 14,582 year-end DJIA target…..Friday’s close was 13,365.87……although we did hit 14,279.96 on OCT11, 2007. Cramer also gave a batch of price targets on most of theDJIA components:
- Batch 1 (AA, MO, AIG, AXP, BA, T)
- Batch 2 (CAT, C, KO, DD, XOM, GE)
- Batch 3 (MMM, GM, HPQ, HON, HD, INTC, AMD, SHLD)
Cramer’s Stock Picks FOR 5-YEARS OUT:
- Cramer’s First Pick For Five Years Out: First Solar (FSLR, SPWR)
- Cramer’s Second Pick For Five Years Out: MedcoHealth (MHS)
- Cramer’s Third Pick For Five Years Out: Transocean (RIG)
SOME LISTS: His list of recession proof stocks compared to ours. We are updating our
Defensive Stocks For The First Half Of 2008" currently. Cramer gave a huge list of companies he expects to benefit from the alternative energy traders (SGR, FWLT, BWA, OMG, FSLR, FTEK, WFR, TTEK, ZOLT, BP, SPWR, CY, CPST, ITRI)… Jim Cramer pondered which US companies China would want to acquire, about 3 months before sovereign funds started buying into US companies. Cramer’s mortgage winners and losers…… Here were his MAJOR BULL MARKET STOCK PICKS(MHS, CVS, AGN, CELG, GENZ, CEPH, RIG, HAL, EMR, CAT, CMI, UTX, KO,PEP, CL, GS, SKS, VFC, UNP, CSX, BA), some of which are DJIAcomponents. Cramer produced a "MUST OWN" list of stocks, many of whichare up significantly and some are down (WHR, BDK, ATI, BGC, HON, ASD, JCI, MDR, FWLT, CAT, TEX, DE, QCOM)
Cramer spent lots of time on International stocks that most US investors might not cover on their own. He made a big call on Mercadolibre (MELI) (also BIDU, GOOG) with some emphasis on buying immediately, right before it made a huge run up. Cramer’s Hidden Video Game Investment Perfect World (PWRD, ATVI, ERTS, VIA) was one he said could run more than 50% for 2008. Cramer made 5 TOP CHINESE PICKS (CEO, CHL, SSW, FMCN, BIDU, GMR). We’ll see in 2008 if any of his Canadian OIL TRUSTS get acquired in 2008 (BTE, CNE, PGH, PVX, PWE, AAV, GDI). Cramer also went over his top picks from Europe for American investors (TOT, SI, ABB, PHG, BF)
ON TECHNOLOGY: Cramer’s NEW HORSEMEN OF TECH…. will the list change in 2008??? Did Cramer Say $1,000.00 on Google, Or Is It $600.00? That was in May 2007. Cramer Gave Monster Price targets to Baidu.com (BIDU, GOOG).. will these targets change in 2008? Cramer was very positive on all the GPS stocks,although we’d expect that Cramer will change his tune in 2008 now thatthe holiday madness is behind us (GRMN, UA, CROX, NVT, TRMB, SIRF).
Would it be fair not to include the Barron’s attack on Cramer from summer for those of you that criticize his every word?
ON WARREN BUFFETT…. Cramer noted that BROOKFIELD ASSET MANAGEMENT in Canada may be the next Berkshire Hathaway (NYSE:BRK/A) NYSE: BAM). Cramer reviewed 10 Warren Buffett stocks for analysis and then reviewed 10 More Warren Buffett stocks:
- Stock Tickers: BRK/A, BNI, KO, PG, WMT, USG, AXP, WFC, MCO, JNJ, COP
- Stock Tickers: BRK/A, UNP, USB, MTB, ASD, NSC, WLP, UNH, IR, HRB
Will his buyout of ALCOA (AA) prediction come true in 2008??? Cramer gave a list of stocks that had bought back so much stock that they might be taking themselves private.
Join our free email distribution list for other Cramer calls or for updates we send out regarding IPO’s, spin-offs, restructuring, reorganization, activist investors and more.
Happy New Years from the 247WallSt.com team!
Jon C. Ogg
December 31, 2007
The Business Day In Global Warming (MDR, GOOG, FTEK, GFET, ACPW, HPQ, YGE, GLW, HOKU, SOLF, HMC, CPST)
McDermott (NYSE:MDR) realigned its its B&W into 4 units, mostly aspects of nuclear but it also is focusing on cleaner coal and carbon capture.
Google (NASDAQ:GOOG) is going greener than green with a new business venture… in alternative energy generation and a search to eliminate carbon from coal. As Google’s initiative is aimed at eliminating and lowering coal use emissions, one key player there (that was not mentioned at all) is Fuel Tech Inc. (NASDAQ:FTEK) and it has been beaten up lately.
Gulf Ethanol (OTC-BB:GFET), which you have likely seen advertised all over the internet, licensed a ‘breakthrough technology" in an agreement to acquire the exclusive rights to a cellulose feed-stock processing technology and will have the exclusive right to deliver this new technology solution to the ethanol industry.
Active Power, Inc. (NASDAQ:ACPW) announced its CleanSource UPS (uninterruptible power supply) system was awarded the 2007 Product Design Innovation of the Year by the Institution of Engineering and Technology….noise rather than financial news.
Hewlett-Packard (NYSE:HPQ) announced relationships with two renewable energy providers, SunPower Corp. in the U.S. and Airtricity in Ireland, as part of the company’s strategy to reduce its global carbon footprint. HP will install its first-ever, large-scale solar power installation at its San Diego facility. And now it will ensure that nearly 90 percent of HP’s energy use in Ireland is renewable, exceeding the company’s 2007 target for carbon emission reductions.
Yingli Green Energy Holding Company Limited (NYSE:YGE) announced it has signed three polysilicon contracts with a leading polysilicon manufacturer to produce over 40 MW of PV modules over the life of the contracts.
Last night, Corning Incorporated (NYSE: GLW) completed expansion of its clean-air products facility, Corning Shanghai Company, Ltd. in Shanghai, China. The additional capacity will help Corning to increase its manufacturing capabilities to meet anticipated local and global demand for advanced ceramic substrates for light-duty vehicle applications.
Yesterday, Hoku Scientific (NASDAQ:HOKU) rose sharply by 38% after signing a Phase II $306 million polysilicon supply pact spread over 8-years with Solarfun (NASDAQ:SOLF).
It’s been a while, but Honda Motors (NYSE:HMC) has gotten a significant amount of attention after the announced launch of the Fuel Cell car, its FCX Clarity. We gave a review of how investors should view this with an explanation as to why. It’s definitely a different take than you’d expect and we show the others in the sector too.
In another note, we recently featured Capstone Turbine (NASDAQ:CPST) on our "10 Stocks Under $10" subscriber letter. We feel the aggressive target where Lazard Capital Markets called for it to essentially double may end up being quite conservative.
To set your RSS feeds to out "Business Day in Global Warming" set your feed to the following URL:
http://www.247wallst.com/alternative_energy/index.html
Jon C. Ogg
November 27, 2008
24/7 Wall St. also has its open email distribution list where we cover IPO’s, merger arbitrage, small cap stocks, reorganizations, upcoming events, and other special situations.
As a reminder, whether you prefer the term "Global Warming" or "Climate Change" is not the issue as far as 24/7 Wall St. covers it. Green business has become big business, and this affects many public companies today.
The Business Day In Global Warming (XEL, FTEK, AIG, SYNM, AKNS, USBE, DASTY, CLNE, DSTI, FSLR, HOKU, PBW, GEX)
Xcel Energy’s (NYSE:XEL) 345-kilovolt transmission line along with two major 115 kV lines will deliver the power into the Minnesota High voltage transmission grid allowing delivery of the power from the Fenton Wind farm and other wind power resources from the Buffalo Ridge region of the state into the twin Cities area. Minnesota’s largest wind farm and the state’s largest transmission line built to carry wind power into the Twin Cities were dedicated today and will soon become fully operational. The only thing between the Twin Cities and the North Pole is a picket fence and it blew down.
Fuel Tech, Inc. (Nasdaq: FTEK) announced receipt of a FUEL CHEM® demonstration order from a new electric utility customer in the Midwestern United States on a large Powder River Basin coal-fired boiler, with chemical feed scheduled to commence later this quarter. Unfortunately for the company shareholders, shares slid nearly 3% to $24.39 after a miserable day yesterday.
Jim Cramer recently gave a large summary of his stock picks that would win from the move to a greener U.S., although some are far from "green" companies.
Al Gore Goes Deeper Into Green VC, As Alternative Energy Stocks Tank (PBW, GEX, FTEK, FSLR, SPWR)
24/7 Wall St. does not normally cover venture capital news, particularly when it doesn’t pertain to a pre-IPO company. But when we see news that Al Gore is joining a top VC-firm like Kleiner Perkins Caufield & Byers as a partner for green investing it sure makes one wonder just how much deeper the green investing trend will get. Interestingly enough, shares in alternative energy stocks are seeing severe profit taking today (see below).
Kleiner Perkins Caufield & Byers and Generation Investment Management have announced a global collaboration to find, fund and accelerate green business, technology and policy solutions with the greatest potential to help solve the current climate crisis. This partnership will provide funding and global business-building expertise to a range of businesses, both public and private, and to entrepreneurs. As a result of the collaboration, the chairman and co-founder of Generation, former Vice President of the United States Al Gore, will join KPCB as a Partner. KPCB has already committed $200 million to green tech ventures.
This doesn’t mean green tech companies can ramp up indefinitely and without logic, but this is one more piece to the green-tech investing strategies that have generated huge gains in 2007. These have pulled back some and may pull back further. In fact, as oil prices fall (and if it continues) then you are likely to see quite a correction in the green-tech sector. Corrections come and go, but with 2008 being a regime change election year it’s hard not to believe that there won’t be deeper pushes into environmental pledges from both sides of the aisle.
What is so interesting here is the argument between the believers and the doubters of global warming or climate change. Whether you believe in it or not, it’s actually silly to not recognize a major trend here. Green technologies (or more eco-friendly operations) are becoming mainstream and represent a major business opportunity here, regardless of politics.
If you wish to see our coverage of select alternative energy news from the financial angle, not the political side, you can set your RSS readers or save to favorites the following link:
http://www.247wallst.com/alternative_energy/index.html
Jim Cramer recently covered some of his favorite stocks he feels will win from these trends, even if these have recently come off highs. Not all of these are green-tech, but they will benefit from the trends already set in place.
Big green-tech stocks are taking it on the chin….
- PowerShares WilderHill Clean Energy (AMEX:PBW) is down nearly 6% at $22.98, and the Market Vectors Global Alternative Energy ETF (NYSE:GEX) is down 4.5% at $54.40….proof that it is quite widespread selling in the alternative energy sector;
- Fuel-Tech Inc. (NASDAQ:FTEK) is down 11% at $25.50;
- First Solar (NASDAQ:FSLR) is down 12% at $182.00;
- SunPower Corp. (NASDAQ:SPWR) is also down 12% at $113.00.
Here is a sample of our last "The Business Day In Global Warming" where we cover the business and financial side of green investing.
Jon C. Ogg
November 12, 2007
Lazard Defending Fuel-Tech (FTEK)
Fuel-Tech (NASDAQ:FTEK) is being defended by Lazard Capital after the net earnings miss yesterday. Analyst Sanjay Shrestha, Managing Director & Senior Analyst, Alternative Energy & Industrials, maintained a BUY rating and a $33 price target on Fuel-Tech today. This was also one of the "Jim Cramer Alternative Energy Picks Reviewed" stocks from last night. Lazard maintains that the $33 target reflects a 25-multiple of 2010 EPS estimates of $1.60 discounted back one year by 20%.
Fuel Tech reported 3Q revenues and EPS of $15.2 million and $0.04, below our and consensus estimates of $19.5 million and $0.07, reflecting lumpiness with timing of bookings, typical for the company’s end market. Consolidated revenues were down 24% Y/Y, with air pollution control (APC) revenues down 39% Y/Y due mainly to major awards materializing later in the quarter than previously anticipated. As a result, management lowered 2007 revenue and EPS expectations to $76-$79 million and $0.25-$0.28 from $80-$85 million and $0.30-$0.35.
Shestha notes that there was a record booking and backlog: booking sat $24.7 million; backlog $28 million up from $9 million at end of last quarter. "We continue to believe the outlook is robust for the company’s APC and FUELCHEM work, as utilities attempt to comply with increasingly stringent air pollution regulations and focus on improving overall plant efficiency. Despite the lower than expected 3Q, we expect the company to exit 2007 with a solid backlog base, setting the stage for excellent growth into 2008/2009 and beyond…. We are lowering our 2007 revenue and EPS estimates to $71.5 million/$0.25 from $80 million/$0.28, but we leave our out-year estimates unchanged as the company’s growth prospects and outlook remain intact."
24/7 Wall St. has an enhanced viewpoint of this stock. The reason you saw buying yesterday after a disappointing result was because Fuel-Tech has one hell of a business model. Everyone hates coal except for coal mine operators, but that doesn’t matter one bit. Even in the U.S. with all the alternatives out there, coal-fired power plants are something we are stuck with for probably decades, and we won’t even address Asia. Only so many nuclear power plants can be built if the permitting is allowed, only so many workers can be hired at any time for this, and only so many plants can be decommissioned in a certain time.
Assuming there are no regulatory loosening factors at work, it is the opinion of 24/7 Wall St. that ‘cleaner coal’ is a fact the world will have to deal with "like it or not." That doesn’t assure a higher price for a triple-digit P/E alternative energy beneficiary. But it certainly explains why there are buyers for this stock every single time it weakens.
Jon C. Ogg
November 7, 2007
Cramer’s Alternative Energy & Green Stocks (SGR, FWLT, BWA, OMG, FSLR, FTEK, WFR, TTEK, ZOLT, BP, SPWR, CY, CPST, ITRI)
On tonights MAD MONEY on CNBC, Jim Cramer wanted to pitch in on covering the green-tech stocks. He says he has no politics on his calls because he is just looking at these as opportunities to make money. Cramer’s green stocks are up 68% on average since he covered that Massachusetts ruling back in April. His stocks from back then and here are his reviews now:
- Shaw (SGR) up from $30 by 146% in nuke power infrastructure he thinks it can still double.
- Foster Wheeler (FWLT) up 99% and being driven by non-green demand, it’s still a favorite but for another reason.
- Borg Warner (BWA) is up 38% and still has legs in cleaner engine parts, Cramer thinks it goes higher.
- OM Group (OMG) is actually down on refining cobalt and he said he’d have given up if last quarter wasn’t good.
- First Solar (FSLR) was up big today on a $1 Billion contract. Its up 170% since his recommendation and he thinks it can go higher with analysts racing each other to raise targets. It reports Wednesday but he says it is expensive and he’s look at it speculatively.
- Fuel-Tech (FTEK) is one that Cramer would rather sell than OM Group.
- MEMC (WFR) is an arms merchant for solar makers in making wafers for solar panels; too good to pass it up; it’s cheap and he thinks out of all green stocks that this one is still bargain. MEMC is his TOP PICK in the alt-en sector.
- Tetra Tech (TTEK) is his play on the water group and he likes the last buyout with an international footprint.
He doesn’t see a single one where he thinks the run is over. In a call-in he was also positive on Zoltek (ZOLT). As far as BP’s (BP) initiatives in a call-in, he thinks it is an after-thought and right now it doesn’t add up right. SunPower (SPWR) in a last call-in is one that he’s been behind and he thinks Cypress Semi (CY) is the play off it.
Another alternative energy stock an analyst said could double is Capstone Turbine (CPST) today in an unrelated report. That was Lazard, and its analyst also defended Itron (ITRI) on recent weakness.
Jon C. Ogg
November 6, 2007
Pre-Market Stock News (November 6, 2007)
- Archer-Daniels Midland (ADM) $0.71 vs. $0.59 est.
- Asset Acceptance Corp. (AACC) -$0.05 EPS vs -$0.05 est.
- Beazer (BZH) cutting 1/4 workers and suspends dividend; sees new order down 50%.
- Church & Dwight (CHD) $0.69 EPS vs. $0.589 est.; sees 2007 EPS $2.42-2.44 vs. $2.36 consensus.
- Cooper Tire (CTB) $0.28 EPS vs $0.30 est.
- El Paso (EP) $0.22 EPS vs $0.23 est.
- Emerson (EMR) $0.78 EPS vs $0.75 est.
- Environmental Tectonics’ (ETC) Aeromedical division won two new contract awards in Middle-East worth a total of $20 million.
- Fuel-Tech (FTEK) $0.04 EPS vs. $0.06 est.; sees 2007 revenues $76-79 million vs. $79.7 million est.
- Gerdau AmeriSteel (GNA) $0.40 EPS vs $0.42 est.
- Google (GOOG) up $25 on analyst Sanford Bernstein raised target to $850.
- International Securities Exchange (ISE) $0.62 EPS vs $0.53 est.
- Kellwood (KWD) sets 2008 targets of $1.55 billion revenue from operations and sees $1.50 EPS.
- K-Swiss (KSWS) $0.36 EPS vs $0.34 est.
- Momenta Pharma (MNTA) announced FDA letter received says its M-Enoxaparin ANDA is NOT Approvable in current form.
- Nortel Networks (NT) $0.05 EPS after charges vs. $0.11 est.; Revenues $2.71 Billion vs. $2.77 Billion est.
- PetroQuest (PQ) $0.16 EPS vs. $0.14 est.
- PowerSecure $0.15 EPS vs. $0.17 est.
- QLogic (QLGC) announced a $200 million share buyback plan.
- Sun Micro (JAVA) up 1.5% after earnings, despite lackluster report.
- TheStreet.com (TSCM) $0.13 EPS vs $0.12 est.; Revenues $16.1 million vs. $16.3M est.
- Urban Outfitters (URBN) sees revenues for Q3 at $379.3 million versus $374.5 million est.; s-s-s +8% for the quarter.
- Valero (VLO) $1.40 EPS vs $1.35 est., but had lowered preliminary numbers.
- Watson Pharma (WPI) $0.33 EPs vs $0.30 est.
Jon C. Ogg
November 6, 2007
The Business Day of Global Warming (SPWR, LDK, PSD, ACM, ICPR, CAB, CSUN, FTEK, EFOI, HOT, CVX)
Wall Street analysts covered a few of the alternative energy names today: SunPower (NASDAQ:SPWR was started as an Outperform rating at RBC Capital Markets; LDK Solar (NYSE:LDK) was downgraded to "Market Perform" at Piper Jaffray.
Puget Sound Energy, a subsidiary of Puget Energy (NYSE:PSD), is deepening its mark in renewable energy, with the utility and its customers now boasting more than 1,200 kilowatts (kW) of combined solar-power generating capacity or enough to serve the total power needs of 125 homes. As Puget Energy serves 1 million electric customers and 721,000 natural gas customers, there is still quite ways to go.
ENSR is providing environmental permitting and licensing support for four major solar energy projects in southern California. ENSR, part of AECOM (NYSE: ACM), is a leading global environmental services firm.
The Business Day In Global Warming (YGE, PCL, FSLR, SPWR, FTEK, NPWS, UEC, CEG, CVX)
Yingli Green Energy Holding Company Limited (NYSE: YGE) amended the joint venture contract with Baoding Tianwei Baobian Electric Co., Ltd. under which Yingli Green Energy will contribute additional capital of US$236.6 million to its principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd.
Plum Creek (NYSE:PCL) was noted positively on ethanol help on "Inside Wall Street" in Business Week.
First Solar (NASDAQ:FSLR) opened a new solar plant in Malaysia; First Solar was one of the WINDOW DRESSING stocks this week (see Friday notes on this) with more than 25% stock price gains.
SunPower (NASDAQ:SPWR) is partnering with Macy’s to install solar power in stores in California.
Fuel Tech (NASDAQ:FTEK) was awarded air pollution control orders totaling $4.8 Million. This is the "cleaning up coal plants" player.
CGM’s Ken Heeber talked up Oil Services On CNBC (SLB, BHI), although we haven’t gotten his read on alternatibve energy. This sounded much like T. Boone Pickens bullish call recently that we’ve addressed.
The Business Day In Global Warming (EEE, AECOX, GE, VOLV, SOLF, FTEK, AW, PCG, PGN)
Evergreen Energy Inc (NYSE:EEE) has signed an “Agreement to Proceed” with specifications and design work that lead to the construction of a K-Fuel® lignite coal refinery in the Inner Mongolian Autonomous Region of the People’s Republic of China (PRC). The agreement was signed yesterday with a subsidiary of China Power Investment Corporation (CPI), one of the five state-owned power generation companies in China.
Our friends at TheStreet.com have a great article "A Green Fund for Global-Warming Skeptics." As we have noted ourselves over and over, whether you believe in "global warming" or "climate change" doesn’t really matter. Green business is becoming big business. Allianz RCM Global EcoTrends Fund (AECOX) is a $131 million fund has appeared in the top 10% of stock funds for several months this year.
Thursday, September 20, 2007
Plutonic Power Corporation (TSX:PCC) and GE Energy Financial Services, part of GE (NYSE:GE), executed a fixed-price construction contract with Peter Kiewit Sons Co. for the construction of the 196 MW Toba Montrose run-of-river hydroelectric project. The signing of the approximately $500 million engineering, procurement and construction (EPC) contract allows Kiewit to move ahead to the next stages after the initial rejuvenation and construction of forestry roads and bridges to the powerhouse site that had begun in July 2007.
With higher than $80.00 per barrel oil, alternative energy is all forms is highly important. Many of these initiatives started back in the 1990’s and 2000 when oil was cheaper than water. T. Boone Pickens is still bullish on oil prices and he’s bullish on his natural gas for autos initiative. Earlier this week Goldman Sachs unveiled their "Super-Spike" in oil prices with the high-end of that band moving from $100 to $135 per barrel and up to $4.50 per gallon of gas at the pump.
Lazard Defends Fuel-Tech (FTEK)
Lazard Capital Markets has made a post-earnings call on Fuel-Tech, Inc. (NASDAQ:FTEK). The brokerage firm has reiterated its Buy rating and $33.00 in an intraday research call. Its reason: they expected this news.
Lazard’s analyst for the alternative and clean energy sector, Sanjay Shrestha, also noted that the results reflect inherent lumpiness in bookings related to air pollution control (APC) projects and the timing of revenue and expenses in the company’s FUELCHEM segment. He also noted "2Q results don’t alter our view of the company’s long-term growth prospects. In our July 30th earnings preview, we noted the potential for lower reported numbers and outlook for 2H07, reflecting the lumpy nature of bookings with utilities and percentage-of-completion accounting." The firm did lower its fiscal 2007 earnings revenue targets to $0.28 (from $0.42) and $80 million (from $92 million), respectively.
In the report, it is also noted that Fuel-Tech is well positioned to gain meaningfully in major international markets, particularly in China. They expect the company to end 2007 with significant backlog that will set the stage for excellent growth in 2008/2009. Lazard’s note also states "Our price target of $33 reflects a 25x multiple on our 2010E EPS of $1.60 discounted back one year at 20%. We believe the pullback in the shares represents an attractive entry point and risk/reward." Maybe they are right. We noted some problems this is starting to show in the model. But shares were down over 10% and are now down less than 3%. Despite the high current P/E ratios, it looks like more traders are using this pullback as an opportunity to buy the stock on sale.
Jon C. Ogg
August 6, 2007
Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.
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