Energy Business

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

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