Monday, January 12, 2009

Wind Stock Review

During 2008, the wind industry achieved a growth rate of more than 42 percent in the US. In recent years, more than $7 billion has been invested in new wind power plants worldwide.

Smart investors see value in renewable energy and wind power is an important part of that picture. Here are 3 of The Green Market's wind stock picks. The performance of these stocks will be reviewed in a forthcoming Green Market post after the years end.

Western Wind Energy Corp. (WND and WNDEF) Western Wind is in the business of acquiring land sites, capital and technology for the production of electricity from renewable sources. Western Wind conducts its operations through its wholly owned subsidiaries in Arizona and California. Management of Western Wind includes individuals involved in the operations and ownership since 1981.

Western Wind announced a 72% increase in revenues for the third quarter (ended September 30, 2008). The Company's financial position as at September 30, 2008 was strong with a cash balance of $3.1 million, working capital of just under $3 million, loans payable of only $0.9 million and shareholders' equity of over $22 million.

Mass Megawatts Wind Power Inc (MMGW) Also known as the Multiaxis Turbosystem, Mass Megawatts is engaged in the production of wind turbines and sale of wind generated electricity. Financial figures show that the company recorded a net loss of USD90,484 (USD0.02 per share) in the second quarter ending 31 October 2008. In the previous fiscal year, net loss of USD48,480 (USD0.02 per share) was reported for the second quarter ending 31 October 2007.

However, the future looks bright for Mass Megawatts as they have introduced an improved augmenter technology that reduces the cost for heavy and expensive components. The recently announced new augmenter reduces the electric generation cost below traditional wind turbine technologies. As a result, Mass Megawatts can be directly competitive with fossil fuel power plants such as coal and natural gas at more locations than traditional wind power plants.

Nonetheless, Mass Megawatts could be affected by risks and uncertainties, including the ability to produce a cost-effective wind energy conversion device, secure the necessary zoning approvals, remain competitive, finance marketing and general economic conditions.

Composite Technology Corp. (CPTC) was recently recognized by QualityStocks as an industry leader in composite technology, designs, manufacturers and markets. They refereced Composite Technology's diversified line of products that solve many of today's power industry problems. On December 29, 2008, Composite Technology announced that its subsidiary DeWind has shipped the last five D8-2000 wind turbines for a wind power generation project in Chile. The company previously shipped five turbines to the Port of Houston.

These are 4 wind stocks that should see some significant growth this year.

Next: US Government Spending and Energy Efficiency Stock

No comments: