Alternative energy companies will remain under pressure, and that will be true of Hexcel (NYSE:HXL) as it pertains to their wind power segment, as the abundance of natural gas is expected to slow down demand and capital expenditure on companies producing wind products.
UBS (NYSE:UBS) said they're maintaining a "Neutral" on the company as recovery in the sector will take a long time. We don't see growth in that area for some time. After all, how long will it take for natural gas resources to slow down? It could be decades before they do, and probably into well over a 100 years. Not great news for the wind, solar and nuclear industries, among others.
"We have lowered our 2011 EPS estimate to $0.95 from $1.00 to account for a slower recovery in wind and also the headwind from a weaker dollar attributable to HXL’s significant Europe production. Our 2012-14 EPS estimates have also moved lower to account for a slower wind recovery. Vestas
today came out and forecast roughly 15% growth in shipments in 2011, below our prior forecast for wind. We remain cautious on HXL given the potential for wind growth to disappoint and A350 to slide to the right combined with its premium valuation."
Hexcel closed down Wednesday at $17.80, losing $0.29, or 1.60 percent. UBS has a price target of $18 on them.
Showing posts with label Windfarms. Show all posts
Showing posts with label Windfarms. Show all posts
Thursday, October 28, 2010
Thursday, September 9, 2010
BP (NYSE:BP) Launches Construction on Wind Farm
BP (NYSE:BP) has started the construction phase of a wind farm in Colorado which will be a 250.8-megawatt project.
Called the Cedar Creek II, it'll be the ninth wind farm BP has in the U.S., and will be able to power about 75,000 regular American homes.
BP is a minority owner in the project, which is 67 percent owned by Australian-based Infigen Energy (ASX:IFN), a producer of wind power.
When completed in June 2011, the venture will sell power to Xcel Energy's (NYSE:XEL) Public Service Co. in Colorado.
Called the Cedar Creek II, it'll be the ninth wind farm BP has in the U.S., and will be able to power about 75,000 regular American homes.
BP is a minority owner in the project, which is 67 percent owned by Australian-based Infigen Energy (ASX:IFN), a producer of wind power.
When completed in June 2011, the venture will sell power to Xcel Energy's (NYSE:XEL) Public Service Co. in Colorado.
Wednesday, September 1, 2010
Deere (NYSE:DE) Sells Wind Energy Business to Exelon (NYSE:EXC)
Deere (NYSE:DE) announced it is selling it wind energy business to a subsidiary of Exelon Corp. (NYSE:EXC) for $900 million.
With the recession continuing on, energy prices remain flat, and will for some time, so organic growth isn't going to happen for these companies.
But the low-price atmosphere is also connected to markets, and that is providing companies like Exelon with good opportunities to snap up companies relatively cheap.
That's why companies with a lot of cash on hand are positioned much stronger than those that aren't, as they can do this with little or no leverage.
Even though Deere had wanted to wait until prices increased for the wind farm, economic data reveals that could be a long wait, and they didn't want to continue with the distraction.
Deere said they want to get back to their core business of building farm equipment.
The rural factor is the reason they entered the wind business in the first place, but other then putting these ugly things on land, there really wasn't much connection.
The deal should close by the end of 2010.
With the recession continuing on, energy prices remain flat, and will for some time, so organic growth isn't going to happen for these companies.
But the low-price atmosphere is also connected to markets, and that is providing companies like Exelon with good opportunities to snap up companies relatively cheap.
That's why companies with a lot of cash on hand are positioned much stronger than those that aren't, as they can do this with little or no leverage.
Even though Deere had wanted to wait until prices increased for the wind farm, economic data reveals that could be a long wait, and they didn't want to continue with the distraction.
Deere said they want to get back to their core business of building farm equipment.
The rural factor is the reason they entered the wind business in the first place, but other then putting these ugly things on land, there really wasn't much connection.
The deal should close by the end of 2010.
Monday, August 9, 2010
Wind Farms Kill More Wildlife Than BP (NYSE:BP) Oil Spill ... Far More
The hype and media hysteria surrounding the BP (NYSE:BP) has been so out of proportion to reality, it's embarrassing to those who repeatedly made it sound like it was environmental armageddon, when in fact it was relatively mild and much of the response to the fears caused it to have more more impact than it would have if responses were based on facts and not fear driven.
Although people with agendas are attempting to resurrect the doomsday scenario, it's too late. The facts are in and the Gulf oil spill simply wasn't that bad, and if people would have heeded the reality that they could go to beaches in the Gulf and vacation there, the tourism industry wouldn't have been near as effected as it has been.
One thing to point out is the attempt to make it look like a slaughter for wildlife and birds, which after combing the region, found under 3,000, and as a recent article in Time magazine pointed out, less than half of them had proof of the oil spill being the cause of their deaths.
Now compare that with the killer windmills in the country, which are alleged to be friendly. Just one forest of windfarms in Washington state kills over 7,000 birds and 3,000 bats every year. Multiply that times the number of windfarms there are in the U.S., and you have a true disaster from these murderous, inefficient and ugly monstrosities.
Where is the call to investigate this outrage? How about prosecutions and media coverage of this disaster. As long as it's a politically correct energy source it doesn't matter how many birds, bats or animals they kill, as long as it appears to be green. What we're finding out, as with corn-based ethanol, is green is mean, and we need to stand up and start fighting against this hidden menace.
The government even offers tons of subsidies for these initiatives, which require huge amounts of inputs, along with the killing of hundreds of thousands of birds and bats annually.
We need to tear those things down and rid the land of them. Selling the materials which made the windmills would go a long way toward recouping some of the costs, and would rid the land of those hideous contraptions.
How is this different from BP and the oil industry, which has caused far less damage over decades than the wind and ethanol industries, which couldn't survive without taxpayers dollars?
It isn't! Let's get the pictures of the torn apart birds and mounds of bats out to the public and see how they respond to their tax dollars at work.
Let's also continue to expose the enormous inputs it takes to develop the corn-based ethanol industry, which even many environmentalist don't back and recognize as one of the worst solutions out there for alternative energy.
The Gulf has been found to be much more resilient and able to clean itself than people thought. But how do we clean the land of windfarms? How does nature deal with them.
Even former oil energy investors are in it just for the money, and not because they actually believe these forms of energy are better for us. They know what the consequences of using them are, but just keep touting it as clean energy and harmless to the environment, in spite of evidence to the contrary.
Since they are causing far more damage than the BP oil spill ever will, and you could include other spill as well, it's a serious question to ponder as to its negative impact for people of integrity, as it's hypocritical to demonize the oil industry when the so-called green industry is anything but.
Speaking of hypocrisy, look at the joke at Berkeley, where they receive millions in funding from BP in order to pursue targeted studies. The liberal bastion is living a lie, and even though a small number of people attempted to eliminate the financing, Berkeley showed its true colors by rejecting that and continuing on with its relationship with BP.
This doesn't bother me at all, but it does show the tremendous lie behind the many people and institutions positioning themselves and environmentalists, when they're far from it, and have as many ties to traditional energy industries as anyone else does.
Add to that the destructive forces these cruel, "green" energy sources release, and you see a completely different picture than the narrative the mainstream media attempts to portray.
Although people with agendas are attempting to resurrect the doomsday scenario, it's too late. The facts are in and the Gulf oil spill simply wasn't that bad, and if people would have heeded the reality that they could go to beaches in the Gulf and vacation there, the tourism industry wouldn't have been near as effected as it has been.
One thing to point out is the attempt to make it look like a slaughter for wildlife and birds, which after combing the region, found under 3,000, and as a recent article in Time magazine pointed out, less than half of them had proof of the oil spill being the cause of their deaths.
Now compare that with the killer windmills in the country, which are alleged to be friendly. Just one forest of windfarms in Washington state kills over 7,000 birds and 3,000 bats every year. Multiply that times the number of windfarms there are in the U.S., and you have a true disaster from these murderous, inefficient and ugly monstrosities.
Where is the call to investigate this outrage? How about prosecutions and media coverage of this disaster. As long as it's a politically correct energy source it doesn't matter how many birds, bats or animals they kill, as long as it appears to be green. What we're finding out, as with corn-based ethanol, is green is mean, and we need to stand up and start fighting against this hidden menace.
The government even offers tons of subsidies for these initiatives, which require huge amounts of inputs, along with the killing of hundreds of thousands of birds and bats annually.
We need to tear those things down and rid the land of them. Selling the materials which made the windmills would go a long way toward recouping some of the costs, and would rid the land of those hideous contraptions.
How is this different from BP and the oil industry, which has caused far less damage over decades than the wind and ethanol industries, which couldn't survive without taxpayers dollars?
It isn't! Let's get the pictures of the torn apart birds and mounds of bats out to the public and see how they respond to their tax dollars at work.
Let's also continue to expose the enormous inputs it takes to develop the corn-based ethanol industry, which even many environmentalist don't back and recognize as one of the worst solutions out there for alternative energy.
The Gulf has been found to be much more resilient and able to clean itself than people thought. But how do we clean the land of windfarms? How does nature deal with them.
Even former oil energy investors are in it just for the money, and not because they actually believe these forms of energy are better for us. They know what the consequences of using them are, but just keep touting it as clean energy and harmless to the environment, in spite of evidence to the contrary.
Since they are causing far more damage than the BP oil spill ever will, and you could include other spill as well, it's a serious question to ponder as to its negative impact for people of integrity, as it's hypocritical to demonize the oil industry when the so-called green industry is anything but.
Speaking of hypocrisy, look at the joke at Berkeley, where they receive millions in funding from BP in order to pursue targeted studies. The liberal bastion is living a lie, and even though a small number of people attempted to eliminate the financing, Berkeley showed its true colors by rejecting that and continuing on with its relationship with BP.
This doesn't bother me at all, but it does show the tremendous lie behind the many people and institutions positioning themselves and environmentalists, when they're far from it, and have as many ties to traditional energy industries as anyone else does.
Add to that the destructive forces these cruel, "green" energy sources release, and you see a completely different picture than the narrative the mainstream media attempts to portray.
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