Energy Business

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.

Lexington Insurance Company, a member company of American InternationalGroup, Inc. (NYSE:AIG), today announced Upgrade To GreenSM Residential,an insurance coverage allowing U.S. homeowner policyholders to rebuildtheir property to “green” standards following a covered loss.

Syntroleum Corporation (NASDAQ: SYNM) today announced it has retainedDallas-based Halliburton Investor Relations to manage the company’sinvestor relations program.  Akeena Solar, Inc. (NASDAQ:AKNS) shares fell some 24% to $5.50 todayafter posting wider losses, although shares are sill up about 80% off52-week lows.Dassault Systèmes (NASDAQ:DASTY) announced that electric carmanufacturer Tesla Motors has selected CATIA PLM Express as its productdevelopment solution.

US BioEnergy Corp. (NASDAQ:USBE) shares rose 16% to $7.45 today afterit announced net income of $11.1 million, or $0.15 per share, for thequarter ended September 30, 2007; this included a one-time impairmentcharge of $2.5 million.  It is positioned to bring total productioncapacity to 750 million gallons per year (mgy) by the end of 2008.Gross margins improved 50% to $28.8 compared to the second quarter of2007.  During the third quarter of 2007, the company sold 73.2 milliongallons of ethanol at an average selling price of $1.76 per gallon.

T. Boone Pickens’
alternative energy stock Clean Energy Fuels Corp. (NASDAQ:CLNE) saw sharesfall 3.6% today to $17.83 after yesterday’s earnings report. For thethird quarter of 2007, the Company’s combined volume of CNG and LNGdelivered increased to 20.0 million gasoline gallon equivalents(Gallons), compared with 18.2 million Gallons in the same period a yearago.  It will be interesting to know if T. Boone Pickens is still expecting $100/barrel oil.

Despite some massive selling yesterday and a recovery for most ofTuesday, alternative energy stocks are still seeing sellers hit theshares as oil is falling more and more.  Owning alternative energystocks is like having a leveraged trade on a high-beta stock when oilprices are fluctuating wildly as these will benefit from higher oilprices.  That sword cuts both ways.

Yesterday came the announcement that former VP Al Gore had joinedpremiere VC-firm Kleiner Perkins Caulfield & Byers as a partner forgreen investing.  The crowd that refuses to accept the term “globalwarming” or even “climate change” probably laughed hard that this wason the same day that many alternative energy stocks got crushed.

A boutique investment banking and research firm named BroadpointCapital initiated coverage of DayStar Tech (NASDAQ:DSTI), First Solar (NASDAQ:FSLR),and HOKU Scientific (NASDAQ:HOKU) all with Buy ratings today.

The PowerShares WilderHill Clean Energy ETF (AMEX:PBW) rose 4.8% to $23.60and the Market Vectors Global Alternative Energy ETF (NYSE:GEX) rose0.2% to $53.76.

-Jon C. Ogg
November 13, 2007