Posted by Windy Admin on July 8th, 2008
The markets have been tough as of late and Wind Energy stocks have not been spared. We categorized WWEI.ob as risky more than 2 weeks ago and since then the stock has fallen from 0.17 to 0.11 shedding almost 40% of its value. Today, WelWind issued a hohum press release that it was going to be involved in standing up 2 met towers in the Zhanjiang region but there was no mention financial terms discussed in the release. Investors will want to see some press of substance before this starts climbing upward once again.
Below is a 5 day chart of WelWind which illustrates the lower trading range this stock has settled into
Posted by Windy Admin on June 26th, 2008
Offshore wind power company Bluewater Wind has announced an agreement to build America’s first offshore wind turbine park off the coast of Delaware. Each turbine will reside on a slim tower about 250 feet above the waterline. From the shore, the park will be visible only on clear winter days, and the turbines will be nearly invisible during summer months when Rehoboth Beach fills with vacationers. Each blade on the three-blade rotor is to be 150 feet long. The wind farm will power 50,000 homes in Delaware, using about half of its capacity.” The initial plan calls for about 60 large wind turbines about 11 miles east of Rehoboth Beach. Bluewater Wind LLC is a member of the Arcadia Wind Holdings LLC family of companies, which successfully developed the 181 MW Judith Gap Wind Farm in Montana. Judith Gap was developed after Arcadia won a competition among 45 bidders of all generation technology types. The first phase of this project, at 135 MW, began commercial operation in November 2005. The balance of the project is expected to be built in 2007.
Posted by Windy Admin on June 24th, 2008
WelWind Energy is a microcap stock trading on the Nasdaq Bulletin Board under the ticker (WWEI.OB). The stock is currently trading around $0.17 and has a market cap of approximately $30 million. WelWind also estimates it would generate $8 million in cash flow in 5 years, though in its first year of wind farm operations its cumulative cash flow would be negative $13 million. WelWind has two wind farms in development in Zhanjiang and Yangxi which the company touts will provide their customers in Zhanjiang and Yangxi the opportunity to purchase cleaner, more affordable electricity and in turn reduce carbon dioxide and pollution into the air. Recently, Welwind Energy announced that it has begun negotiations for a Joint Venture Partnership with YATU Wind Energy Manufacturing Co. Ltd (formerly ENGGA) to manufacture wind turbines internationally and further announces that the two companies have signed a Turbine Supply Agreement (EPC) for 66 Wind Turbines for its Zhanjiang Wind farm Project. In the short term however, this announcement doesn’t have any positive impact on earnings. Aside from these 2 projects, there is not much else in the pipeline when looking at press releases or the corporate website. For WelWind to scale, they need to diversify their deployments in other regions outside of China and speed up those deployments.
In addition, form their most recent 10Q filing, they will need to raise substantial cash to fund future growth which will result in the company diluting shares or taking on debt.
Our cash on hand as of March 31, 2008 is $22,241. We have sufficient cash on hand to pay the costs of some of our operations as projected to twelve (12) months or less and to fund our operations for that same period of time. However, we will require additional financing in order to proceed with some or all of our goals as projected over the next twelve (12) months. We presently do not have any arrangements for potential lines of credit or sources of financing for the purpose of proceeding with any of our goals projected over the next twelve (12) months and beyond.
For now, it seems prudent to steer clear and reassess in 3-6 months to see whether the company is able to fund operations, execute against their current China projects and increase capacity so they can embark on new projects. To sustain a market cap of even $30 million, you should be able to net $2 million per year in net profits and it doesn’t look like that will happen until at least 2010-11.
Posted by Windy Admin on June 18th, 2008
Wind energy company Noble Environmental Power Inc. has filed for an initial public offering of common stock, according to a Securities and Exchange Commission filing in May. The company did not disclose the expected size or price range of the IPO, but indicated the offering may total up to $375 million but is subject to change. The 4 year old company began operating its first wind farm in March of this year and has 282 megawatts, or MW, of electrical generating capacity through wind parks in NY. The company has also started construction of additional wind parks in New York and Texas that it expects will provide an extra 465 MW of capacity in 2008 growing to 3850 MW of capacity in the next 4 years.
Lehman Brothers, JP Morgan Securities and Credit Suisse Securities are underwriting the IPO which could be oversubscribed if the hype around wind energy continues. Noble plans to list its shares on the Nasdaq Stock Market under the symbol “NEPI.”
