Solar Update (Part 2 of 2) Ardour Solar Energy Index Signals These 7 Companies May be Worth a Closer Look
Submitted by EnergyTechStocks.com
With the universe of solar energy companies seemingly expanding at the speed of light, investors interested in companies that have already passed multiple screens for capitalization, float, exchange listing, share price and turnover may find it useful to take a closer look at the seven companies just added to the Ardour Solar Energy Index, Ardour being an established name in the alternative energy universe.
Interestingly, five of the seven are listed in Europe, only two in America (and one of those is a Chinese company), further indication that alternative energy investors must have a global perspective. Indeed, many of the world’s biggest wind power companies, including those dominant in the U.S., only trade in Europe.
The group includes three German-based firms, Aleo Solar AG, Centrotherm Photovoltaics AG and Roth and Rau AG. While much has been written about Germany curtailing its financial incentives for solar electric power, much of the rest of Europe is expanding solar markets, providing solar companies with new revenue opportunities. Indeed, nearly all of the new arrivals on the Ardour index are enjoying record profit runs as they expand to meet increasing European, and also American, demand. In turn, each has seen its share price rise – some by a lot – in recent weeks. How much, if any, upside is left in each stock remains to be seen.
Aleo Solar, which makes solar modules, is in the midst of an 80% increase in its manufacturing capacity, to 180 megawatts, by the end of 2008. The company recently reported that first quarter earnings per share doubled over the prior year, while revenue rose about 85%. Centrotherm, which provides technology and services for the production of solar cells and solar silicon, did even better in the first quarter, about quadrupling revenue to 67.5 million Euros, with strong profit growth as well. Roth and Rau is a more diversified firm, one of its units producing plasma process systems for the coating of crystalline silicon solar cells. The company also is enjoying rapid growth – through the first two months revenue reportedly was up about 50% — and the company also is engaged in an expansion program.
Canada’s Day4 Energy makes and sells solar panels. It is far less established than the German outfits described above, having only just achieved positive gross margins. But its proprietary technology, which reportedly increases the efficiency of a solar panel, could prove highly successful. China’s ReneSolar Ltd. trades in the U.S. after going public earlier this year. While some of the stock’s recent rise appears due simply to investors’ tendency to buy solar shares when the price of oil goes up – not that the two really are connected – the company also recently reported record first quarter earnings following an expansion program.
Like the others, British-based Crystalox Solar PLC, which makes the wafers that go into solar cells and modules, is enjoying a record earnings run, having recently reported more than a 40% increase in first quarter profits. The only U.S.-based company in the group, Akeena Solar, makes and installs solar power systems. Akeena is expected to do well from California’s ever-expanding incentives program for residential solar. Recent Wall Street upgrades have caused Akeena’s stock price to jump.
