Trimming Your Green Portfolio (Part 3 of 3) – Hydrogenics Corp. and Suzlon Energy Ltd.
Submitted by EnergyTechStocks.com
With the stock market in the tank and a global recession setting in, even many major green energy developers are cutting plans for 2009. For smaller guys – including a number that EnergyTechStocks.com has positively written about – 2009 shapes up as a very difficult year.
For those wishing to trim their green portfolios, here are six companies which, even though their long-term potential still appears intact, look to be expendable at the present time, continuing with Hydrogenics Corp.
This NASDAQ-traded Canadian firm makes fuel cell equipment and hydrogen generation equipment for clean power generation. At first glance, the company appears to be okay despite the worsening recession, having just reported a modest increase in third quarter revenue, its sixth consecutive quarter of revenue growth. But while its third quarter loss narrowed, this small company was still over $3.7 million in the red, with no indication that it’s about to turn the corner. If anything, markets the company is targeting for its fuel cells, such as industrial forklifts, sound like the sort of basic manufacturing markets that are expected to be seriously affected by the slowdown in the overall economy.
Meanwhile, thanks to governments’ requiring sharp increases in green energy generation, wind power may have the brightest near-term outlook in a world facing a near-depression. But with so many stronger players to choose from, having India’s Suzlon Energy Ltd. in a portfolio just doesn’t seem worth it.
Suzlon is the world’s fifth largest wind turbine manufacturer and it reportedly has an 8% market share of wind turbines in the U.S., the world’s biggest wind energy market. But this year Suzlon has had serious quality issues. There have been numerous reports of blades splitting and excessive vibration when the turbines are operating at high speeds. With so many other giant wind turbine manufacturers around – such as Germany’s Nordex and Denmark’s Vestas – Suzlon looks like an also-ran.
November 30th, 2008 at 3:54 pm
There is a great new book out called The Manhattan Project of 2009 Energy Independence NOW by Jeff Wilson. I highly recommend this book for anyone interested in alternative energy. http://www.themanhattanprojectof2009.com