March 26, 2008
Knobias Clip Report (03-25-2008)
By admin
Submitted By Knobias ClipReport
DESC: Shares Jump 20% on Order from a Canadian Power Company
Tuesday’s session saw some of the gains on the Dow over the past few days erode as additional data from housing prices displayed prices falling and consumer confidence reports showing lows not seen since 1973.
Many of the agricultural names bucked the downward trend following Monsanto’s (MON) earnings report which was better than expected. Forward looking statements and guidance also had investors applauding the company to the tune of 9%. Origin Agritech Limited (SEED) saw its shares spike as well following the MON earnings report. SEED, which has many of the same products as MON, but focuses on China, saw its value increase 30%. Many others in the Agricultural industry also rallied such as POT, MOS, NOEC, TRA, TNH, AG, SYT, DE, and CNH.
Also making headlines were words from Boone Pickens who was interviewed throughout the day on CNBC. The oil investor reiterated his bullish call on oil but noted that America needs to stop the transfer of wealth to oil producers and focus on starting a domestic renewably energy dependency.
One of his suggestions was wind power in which he envisioned a massive power production plan in the central United States.
With that suggestion, it may be wise to follow names such as Distributed Energy Systems, Inc. (DESC) and A-Power Energy Generation Systems, Ltd. (APWR).
Before the bell on Tuesday, DESC announced that it had received an order for its advanced Northwind 100 gearless wind turbines from Newfoundland and Labrador Hydro (Hydro), the fourth largest utility company in Canada.
Three Northwind 100 turbines will be installed in Ramea, a small remote island on the south coast of Newfoundland and one of 22 isolated communities served by Hydro. Ramea is the site of a five-year innovative research and development project for an isolated wind-hydrogen-diesel generation system, one of the first of its kind in the world. This project is focused on developing an environmentally-friendly energy solution to be used in small, isolated electrical distribution systems. The project builds on the existing, successful wind-diesel system that has been operating in Ramea since 2004.
After the announcement, shares jumped some 20% off lows following being designation a ‘Going Concern’ by auditors in their recently filed 10-K
Last week, APWR announced that it entered into an agreement with Inner Mongolia Wulahot Hengwang Heat & Electricity Generation Co., Ltd. to increase the size of its existing contract worth $175 million by approximately $105 million to $280 million. With the increased value of this contract, A-Power’s backlog has increased to $566 million.
The Company noted that it will enter into China’s wind energy market in 2008 along with other renewable energy technologies with their strategic relationships with Tsinghua University and the China Sciences Academy in Guangzhou.
In any event, as corn based ethanol continues to strain the country’s food supply, increasing prices to almost unaffordable rates, the nation will have to look to alternate forms of energy including solar and wind. With that in mind, investors would be wise to watch.
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