E•BOOM CAPITAL: Wind Sector Climbs, Solar Companies Fall During Underwhelming Week
It was another underwhelming week for the stock markets, with the broad markets and broad clean energy indices all losing ground over the five days.
The only strongly positive clean energy sector was wind power and technology, with the EnergyBoom Wind Subindex (E•B Wind) increasing 1.35% and the First Trust Global Wind Energy ETF (FAN) climbing 0.90%. Biggest loser was the solar power and technology sector, with the EnergyBoom Solar Subindex (E•B Solar) falling 7.34% and the Guggenheim Solar ETF (TAN) dropping 6.27%.
Two companies led the E•BOOM Wind index this week:
- Shares of Danish-based global manufacturer Vestas Wind Systems A/S (OTC: VWDRY.PK) (market cap $6.5 billion) increased 8.18% on news this week that its wind turbines were chosen for power projects in the United States, Scotland and Brazil totaling 320 megawatts.
- Broadwind Energy, Inc. (NASDAQ: BWEN) (market cap $188 million) shares climbed 16.56% after the market consolidated the news of a strong Q1 2011 the company released May 9. Based in Cicero, Illinois, Broadwind designs and manufacturers wind turbines blades, towers and gearboxes.
There were two standout performers in the EnergyBoom Clean 100 Index (E•B Clean 100):
- Orion Energy Systems, Inc. (AMEX: OESX) (market cap $89 million) jumped 30.6% this week. The energy management and lighting technology company, based in Manitowoc, Wisconsin, reported financial results May 18 for the fiscal year ended March 31, 2011 showing improved revenues over 2009 and a profit in 2010 compared with a net loss in 2009.
- Shares of power demand response manager EnerNOC, Inc. (NASDAQ: ENOC) (market cap $499 million) increased 10.9% based on news by grid operator PJM Interconnection that demand response services would be an important part of its capacity in the June 2014 through May 2015 period. EnerNoc said it now expects more than $275 million of PJM demand response revenue in 2014. EnerNoc had 2010 revenues of $280 million, approximately 35% of which came from demand response contracts with PJM.
Most companies in the EnergyBoom Solar Subindex (E•B Solar) had losing weeks:
- Biggest loser was LDK Solar Company Ltd. (NYSE: LDK) (market cap $1 billion) whose shares fell 22%. The company said today it was postponing a debt offering because a recent increase in interest rates exceeded its expectations. Management still expects to generate enough operating cash flow to support its business plan and reiterated guidance for the first quarter and fiscal year.
- Evergreen Solar, Inc. (NASDAQ: ESLR) (market cap $37.4 million) fell 17% this week. The company said last week in its Q1 2011 financial results that it was scrambling to acquire enough cash to avoid bankruptcy. On January 12, the Marlboro, Massachusetts-based company said it was closing its nearby Devens manufacturer plant and laying off 800 employees because it couldn’t compete with low-cost Chinese manufacturers. This week a Massachusetts economic development board voted to cut off two multimillion-dollar tax breaks for the company.
Other losing solar companies:
- Trina Solar Limited (NYSE: TSL) -14%
- Yingli Green Energy Holding Company Limited (NYSE: YGE) -14%
- ReneSola Ltd. (NYSE: SOL) -12.97%
- Ascent Solar Technologies Inc. (NASDAQ: ASTI) -14.71%
- JinkoSolar Holding Co., Ltd. (NYSE: JKS) -13.93%
EnergyBoom indices performance over the past five days:
- EnergyBoom Clean 100 Index (E•B Clean 100) -1.85%
- EnergyBoom Wind Subindex (E•B Wind) +1.35%
- EnergyBoom Solar Subindex (E•B Solar) -7.34%
- EnergyBoom Biofuel Subindex (E•B Biofuel) -0.76%
- EnergyBoom Efficiency Subindex (E•B Efficiency) -0.46%
Broad market performance over the past five days:
- S&P 500 Index -0.34%
- Dow Jones Industrial Average -0.66%
- NASDAQ Composite -0.89%
- FTSE 100 +0.38%
- DAX 30 Index -1.02%
- CAC 40 Index -0.70%
- Shanghai Composite -.44%
- Hang Seng Index -.33%
Green exchanged-traded funds (ETFs) performance over the past five days:
- Market Vectors Global Alternative Energy ETF (GEX) -1.71%
- PowerShares Global Clean Energy Portfolio (PBD) -2.06%
- First Trust NASDAQ Clean Edge Green Energy Index (QCLN) -2.37%
- Guggenheim Solar ETF (TAN) -6.27%
- First Trust Global Wind Energy ETF (FAN) +0.90%
- NASDAQ OMX Clean Edge Global Wind (QWND) -0.28%
- Guggenheim S&P Global Water (CGW) +0.55%
DISCLOSURE: The writer has no positions in, or professional connections with, these companies.
The economy’s transition to cleaner and more secure sources of energy is inevitable, but its speed will depend on technology, policy and capital. EBOOM CAPITAL focuses on companies whose practical and commercial alteratives to fossil fuels and energy waste are generating - or have good prospects to generate - revenues and profits.
Any opinion contained in this article is solely that of the writers, and does not necessarily shape or reflect the editorial opinions of Energy Boom. Energy Boom content is for informational purposes only and is not intended to be advice regarding the investment merits of, or a recommendation regarding the purchase or sale of, any security identified on, or linked through, this site.
