I think this is the beginnings of an economy based on perpetual growth and fossil fuel energy running headlong into geological energy constraints. Basically I see an undulatory downward path for the rest of my life. From here out, I think any rallies in our economic condition are going to be met with spiking commodity prices that knock us right back down.
Posted: Mon Jun 30, 2008 9:29 am Post subject: Saw A Vestas Wind Energy Commerical For First Time Today
I was watching CNN and they had just finished a little piece on the price of oil hitting new highs when the commercial break featured a Vestas spot. It's a Danish firm that seems to be eyeing the US market more aggressively. But you can only get shares of it on the Danish exchange - which makes it problematic for US investors looking for a pure wind energy play. Shares of Vestas also are priced at about $635 or more.
Still, US investors can find small-cap stocks like Zoltek, a manufacturer of turbine blades (Vestas is a customer of their's) and a number of small-cap stocks who are developing wind farms. The idea seems to be to accumulate shares on the bet that these small firms will be acquisition targets.
Hedge fund billionaire and Peaker, T. Boone Pickens, will be jumping into the wind farm business with $100 million using GE turbines.
With roughly 35% market share around the world, Vestas has managed to build a real business in alternative energy alongside titans like General Electric (NYSE: GE), and Siemens (NYSE: SI). Unfortunately, you can't invest in it easily. Although the company has a Pink Sheets ticker symbol (VWSYF.PK), there's no volume there and investors who want to buy shares have to look to European stock markets to do so.
That's a pity.
Vestas posted more than $3 billion in revenue for 2004, up more than 50% from the year-ago period. Although the company posted a net loss for the year, results were hurt by one-time costs. Still, the company does have positive EBITDA (earnings before interest, taxes, depreciation, and amortization) -- something that many American alternative energy plays can only dream about.
What's the secret behind Vestas? For starters, it hasn't tried to change the world. Instead of crafting technology that forces everyone else to adjust to it, it makes gear that fits into existing systems.
What's more, the technology is cost-competitive. While wind power isn't practical everywhere, in those places where it is appropriate (you have to have wind, after all), it matches up very well. In fact, at about $0.06 per kilowatt-hour, wind power is equivalent in many cases to existing coal or gas-fueled electricity, and that's without any special government handouts or programs.
Vestas might be too difficult for most readers to own, but that doesn't mean that there aren't lessons here for American investors. Optimism about renewable energy is all well and good, but basic economics still wins out in the end. In other words, no matter how cool the technology may be, it's got to make financial sense for the intended end users or it's just a fancy science fair project.
Posted: Mon Jun 30, 2008 10:32 am Post subject: Re: Saw A Vestas Wind Energy Commerical For First Time Today
Try their website: http://www.vestas.com
Plenty of video and presentations. It's an impressive company.
From what I have checked last time, you can gain exposure to them through some ETF's and mutual funds, which hold as much as 10% of their assets, in Vestas shares. _________________ capitalism *is* fun | crude oil price
Posted: Mon Jun 30, 2008 12:17 pm Post subject: Re: Saw A Vestas Wind Energy Commerical For First Time Today
I just noticed I can buy Vestas shares through my bank, but the fee is a bit high (40 Euros, 60 USD) ... however, the shares performed great with all the ongoing crysis (up 40% in the past 6 months). _________________ capitalism *is* fun | crude oil price
Posted: Mon Jun 30, 2008 1:34 pm Post subject: Re: Saw A Vestas Wind Energy Commerical For First Time Today
mrobert wrote:
I just noticed I can buy Vestas shares through my bank, but the fee is a bit high (40 Euros, 60 USD) ... however, the shares performed great with all the ongoing crysis (up 40% in the past 6 months).
The other big European wind manufacturer is Nordex:
Google Finance wrote:
Nordex AG is a Germany-based manufacturer and supplier of wind energy systems, specializing in wind turbines. The Company's principal focus is on high-capacity units. Under the Nordex brand name, it offers wind turbines for various geographic regions, whether onshore or offshore. The Company's product portfolio includes Nordex N80/2500 kilowatts (kW); Nordex S70/1500 kW and Nordex S77/1500 kW turbines for onshore use; Nordex N90/2300 kW, Nordex N90/2500 kW; Nordex N80/2500 kW turbines for offshore use, and Nordex N60/1300 kW, a series of small units for international markets. In addition, it is engaged in the provision of rotor blades with a length of up to 45 meters and the development of electrical and control technologies for wind turbines, as well as technical planning of wind park systems. The Company has supplied over 2,980 wind turbines with a total rated output of over 3,300 megawatts to 34 countries worldwide. It has representative offices and subsidiaries in 18 countries.
Over the next few years, Nordex will be spending around USD 100 million to establish its own US production facilities for wind turbines and rotor blades. As early as 2009, the first locally produced 2.5 MW wind turbines will be entering the US market. “Four years ago, Europe constituted over 70 percent of the market. Looking forward, we expect Europe, Asia and the United States to each account for one third of demand. Over the next few years, we want to generate around 20 percent of our sales in North America,” says Thomas Richterich, CEO of Nordex AG, explaining the reasons for the decision to build US production facilities.
Seems like the big players are all coming into the US market all of a sudden with about a $100 million apiece.
Joined: Jun 28, 2005 Posts: 372 Location: san jose CA
Posted: Mon Jun 30, 2008 5:04 pm Post subject: Re: Saw A Vestas Wind Energy Commerical For First Time Today
mrobert wrote:
Try their website: http://www.vestas.com
Plenty of video and presentations. It's an impressive company.
From what I have checked last time, you can gain exposure to them through some ETF's and mutual funds, which hold as much as 10% of their assets, in Vestas shares.
I just bought some "FAN", a wind energy ETF with Vestas and Zoltek in it as well as around 50 other companies. Looking to hold it and see what happens in 5-10 years.
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