24/7 Wall St. » FTEK

24/7 Wall St. Closing Bell (AIXG, AZN, HON, HUM, PAA, ALU, FTEK, IRDM, XIDE, WMS, JRCC, PKT, RJET, OPXA, DYN, TRGT, MSSR, SZYM)

Paul Ausick — Tue, 08 Nov 2011 21:07:29 +0000

Equities started the day with a solid move up, but lost momentum after about half an hour. The downward move lasted into the late morning, at which time stocks started a fitful climb back up. There was no big news to speak of, although the Italian prime minister lost a budget vote which may lead to vote of confidence in his leadership. Crude oil is up about $0.75/barrel and gold is up about $6.40/ounce, to near $1,800/ounce. Commodities are mostly higher as the dollar weakened. Stocks finished the day near session highs.

The unofficial closing bells put the DJIA up more than 101 points to 12,170.18 (0.84%), the NASDAQ rose more than 32 points (1.2%) to 2,727.49, and the S&P 500 rose 1.17% or more than 14 points to 1,275.93.

There were several analyst upgrades and downgrades today, including Aixtron SE (NASDAQ: AIXG), which we noted in our story on LED lighting this morning and was raised to ‘equal weight’ at Morgan Stanley. Other changes included AstraZeneca PLC (NYSE: AZN) cut to ‘underweight’ at Morgan Stanley; Honeywell International (NYSE: HON) raised to ‘buy’ at Citigroup; Humana Inc. (NYSE: HUM) reiterated as ‘buy’ and target price raised to $95 at Argus; Plains All-America Pipeline L.P. (NYSE: PAA) raised to ‘buy’ at Wells Fargo; and Alcatel-Lucent (NYSE: ALU) cut to ‘neutral’ at BofA/ML.

Here are today’s big post-earnings news reactions with prices during the last half-hour of trading: Fuel Tech, Inc. (NASDAQ: FTEK) is up about 22%, at $6.63; Iridium Communications Inc. (NASDAQ: IRDM) is up nearly 16%, at $7.34; Exide Technologies (NASDAQ: XIDE) is down more than -32%, at $3.04, after posting a new 52-week low of $2.98 earlier today; WMS Industries Inc. (NYSE: WMS) is down nearly -17%, at $18.25; James River Coal Corp. (NASDAQ: JRCC) is down nearly -9%, at $9.45; and Procera Networks, Inc. (AMEX: PKT) is up nearly 21%, at $14.31, after posting a new 52-week high earlier today of $14.38.

Several other standouts from today are as follows…

Republic Airways Holdings Inc. (NASDAQ: RJET) is up more than 57%, at $4.24. The company said that it is looking at selling or spinning off its Frontier Airlines unit.

Opexa Therapeutics, Inc. (NASDAQ: OPXA) is up nearly 33%, to $1.37. The company announced that its drug treatment for multiple sclerosis has received the Fast Track designation from the FDA.

Dynegy Inc. (NYSE: DYN) is up more than 28%, at $3.79. The utility company has said that several of its units have filed for bankruptcy. We covered the unusual bankruptcy boost in more detail earlier today.

Targacept, Inc. (NASDAQ: TRGT) is down nearly -59%, at $7.75, a new 52-week low. The company announced this morning that its anti-depressant drug failed a recent first phase trial.

McCormick & Schmick’s Seafood Restaurants Inc. (NASDAQ: MSSR) is up more than 27%, at $8.65. The company has accepted a buyout offer of $8.75/share in cash from Landry’s Inc.

Solazyme, Inc. (NASDAQ: SZYM) is up more than 17%, at $10.98. The company has signed tentative contracts for 90% of its feedstock through 2015. We covered potential upside in the biofuel sector earlier this week.

Stay tuned for Wednesday. Federal Reserve chairman Ben Bernanke is giving a speech in the morning and Federal Reserve governor Daniel Tarullo gives a speech in the afternoon. We have noted the following events (all times Eastern):

7:00 a.m. – Mortgage Bankers Association purchase applications
9:30 a.m. – Wholesale trade report
10:30 p.m. – EIA weekly petroleum status report
1:00 p.m. – US Treasury 10-year note auction

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: AIXG, ALU, AZN, DYN, FTEK, HON, HUM, IRDM, JRCC, MSSR, OPXA, PAA, PKT, RJET, SZYM, TRGT, WMS, XIDE

CO2 Restriction Easing on Coal-fired Power Plants? (BTU, ACI, MEE, CNX, FTEK)

247wallst — Mon, 22 Dec 2008 10:04:56 +0000

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.

Needless to say, environmental groups have already challenged thisruling, and an environmental appeals board has directed EPA to re-thinkits ruling on carbon dioxide. But until the EPA completes its review,any new coal-fired power plant can be built without any control ongreenhouse gas emissions.

This is temporarily good news for coal producers, which could use somegood news. Peabody Energy Corp. (NYSE:BTU) closed recently off nearly75% from 52-week highs. Arch Coal Inc. (NYSE:ACI) is off nearly 80%,Massey Energy Company (NYSE:MEE) is off nearly 85%, and CONSOL EnergyInc. (NYSE:CNX) is down about 75%.

Nearly everyone expects the incoming Obama administration to mandatesignificant reductions in greenhouse gas emissions, which would almostcertainly mean a reduction in coal burning. But coal produces nearly50% of US electricity, and, as with gasoline for transportation, thereis no cheap, quickly-implemented alternative. The only fuel that couldpossibly replace significant amounts of coal-generated electricity isnuclear. And nukes may be even more controversial than coal. There isalso the notion that piling on extra costs on to companies (andultimately to consumers) right now when everyone is strapped will onlyhurt the economy further.

That leaves "clean coal," which is more of a promise than a reality.Essentially, clean coal burning implies capturing the greenhouse gasemissions before they go up the stack and then storing the capturedemissions somewhere. Carbon sequestration is touted as the solution foreither storing CO2 indefinitely or until the CO2 can be used insecondary recovery of US crude oil.

Fuel-Tech, Inc. (NASDAQ: FTEK) offers boiler optimization, and airpollution reduction and control solutions. It has been unable tomaintain being a successful stock story, but it is probably chomping atthe bit for whatever cleaner and more efficient mandates come down.

The catch is that not every existing power plant is built near apotential CO2 storage site. In fact, most aren’t, which is the biggercatch. New coal-fired plants built near suitable geology will likelynot be near the power grid, which means new transmission lines.

The biggest catch though is how the US chooses to tax carbon dioxideemissions. A straight-forward tax is unlikely because politiciansdislike taxes, so that leaves the various cap-and-trade schemes. Butany tax on CO2 emissions will ultimately be paid by consumers, whichwill be unpopular as well.

There is no simple, clean, quick alternative to coal. In the near-term,nothing will replace it. That’s probably good news for the producers.The bad news is that the US sits on so much coal that pricing pressurewill always be a factor.

Paul Ausick
December 22, 2008

Posted in Alternative Energy, Oil & Gas, Utilities Tagged: ACI, BTU, CNX, FTEK, MEE

Short Sellers Losing Conviction in Alternative Energy (CSIQ, CPST, CLNE, ESLR, FSLR, FTEK, FCEL, HOKU, LDK, SPWR, STP)

247wallst — Thu, 25 Sep 2008 08:07:30 +0000

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.

Alternative Energy                         SEPT 15    AUG 29    Change
Canadian Solar Inc. (CSIQ)          4,731,677 4,792,383 -1.27%
Capstone Turbine Corp. (CPST) 28,332,291 26,868,541    5.45%
Clean Energy Fuels Corp. (CLNE) 4,871,814 3,157,778    54.28%
Evergreen Solar, Inc. (ESLR)       30,308,874 29,577,222    2.47%
First Solar, Inc. (FSLR)                3,966,956 4,118,065 -3.67%
Fuel Tech, Inc. (FTEK)                9,302,674    8,967,558    3.74%
FuelCell Energy, Inc. (FCEL)    13,205,000 13,231,020 -0.20%
Hoku Scientific, Inc. (HOKU)       3,363,737 3,408,545 -1.31%
LDK Solar Co. Inc. (LDK)          11,752,249 12,810,785 -8.26%
SunPower Corporation (SPWR) 18,335,432 18,696,656 -1.93%
Suntech Power Holdings (STP) 12,782,938 12,693,121    0.71%

Jon C. Ogg
September 25, 2008

Posted in Alternative Energy, Short Interest Tagged: CLNE, CPST, CSIQ, ESLR, FCEL, FSLR, FTEK, HOKU, LDK, SPWR, STP

Short Seller Changes in Alternative Energy (CSIQ, CPST, CLNE, ESLR, FSLR, FTEK, FCEL, HOKU, LDK, SPWR)

247wallst — Thu, 11 Sep 2008 14:11:40 +0000

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)

247wallst — Wed, 28 May 2008 09:58:55 +0000

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)

247wallst — Mon, 21 Apr 2008 17:35:21 +0000

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)

247wallst — Tue, 04 Mar 2008 14:33:53 +0000

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)

247wallst — Mon, 03 Mar 2008 16:55:04 +0000

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)

247wallst — Sat, 01 Mar 2008 08:23:00 +0000

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)

247wallst — Tue, 26 Feb 2008 15:41:52 +0000

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