Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Why Most Investors LOST Money by Investing in ARK FUNDS - 27th Jan 22
The “play-to-earn” trend taking the crypto world by storm - 27th Jan 22
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Investing in Smart Grid Technology: Two Stocks to Power Up Your Portfolio

Companies / Electricity Aug 16, 2012 - 12:56 PM GMT

By: Money_Morning

Companies

Best Financial Markets Analysis ArticleG.S. Early writes: There's a saying that goes, when you lose the Internet it's like 1979 but when you lose power it's like 1879.

For a while, we actually lived through it when a big swath of the mid-Atlantic lost power in July. Let me tell you, it was ugly.


I've lived in Northern Virginia for most of my life. I remember dill pickles in a barrel at the grocery store, Quisp and Quake cereal, and Frank Howard was my hero on the Washington Senators, if that gives you an idea of old I am. In all of those years I have never seen anything like it.

The power went out on Friday night and by mid-morning Saturday, there wasn't a hotel room with air conditioning to be found in a 50 mile radius.

So many street lights were out that it was up to the drivers to figure who went next, and you're talking a metropolitan area of about 12 million people cycling through. That doesn't even account for the fact that I-95 cuts through the whole area with trucks, tourists, etc.

It was completely nuts.

Now imagine what it was like in India where nearly 700 million lost power. Yes, that's 700 million suddenly without power.

That's like the entire U.S. going down and then adding another 200+ million on top of that.

The lesson in both instances though is the same: It's necessary to build a "smart" grid.

Will the US Build a Smart Grid Before It's Too Late?
Of course, it's not likely that either massive blackout will spur much debate over a giant new smart grid project in the U.S. - especially in an election year when the economy is barely scratching by.

Even still, the U.S. does have a few plans in place for implementing smart grids, real time interfaces between power suppliers and consumers and more efficient transmission technologies. And there are growing Homeland Security issues with the grid surrounding its reliability and security.

What's more there is an ongoing shift from a centralized distribution model (power plant to substations to customers) to a decentralized model (power can come from various places on the grid if there's a power surge instead of drawing from the central plant).

Many of these programs are working through private industry because the producers and consumers understand that the more efficiently power can be generated, distributed and consumed, the better the margins are for everyone involved.

To that end, there are a pair of companies that are involved in one of the most ambitious aspects of developing a new smart grid.

Investing in Smart Grid Technology
Both make high temperature superconducting (HTSC) wire. This is to the traditional powerline like fiber optic cable is to a telephone wire.

The capacity is so great you could literally back up a small city on one buried HTSC cable. And because they have so much capacity, you can build in other smart systems to help keep the grid functioning and receive real time feedback, chart consumption trends, etc.

One of the pioneers in this field is American Superconductor (Nasdaq: AMSC).

The stock has been slammed in recent years because of its wind division. It had a deal with Sinovel, one of China's largest wind companies and then Sinovel walked, leaving AMSC short one gigantic client.

Now the company is going back to its roots and the HTSC side of the business until the global economy gets back on its feet.

The company's revenues for the first quarter of fiscal 2012 were $28.7 million, which compares with $9.1 million for the first quarter of fiscal 2011. The year-over-year increase was driven by strong growth in the company's Wind and Grid reporting segments.

For the first quarter of fiscal 2012, AMSC reported a net loss of $10.3 million, or $0.20 per share. This figure includes a non-cash benefit of approximately $7.3 million for the settlement of adverse purchase commitments with certain vendors (Sinovel more than likely) as well as a $2.4 million non-cash "mark-to-market" charge driven by the re-valuation of the derivative liability and warrants associated with the company's recently completed debt financings.

For the first quarter of fiscal 2011, AMSC's net loss was $37.7 million, or $0.74 per share.

The company is paring its losses significantly and is making money again as well. Revenue for the first quarter of fiscal 2012 were $28.7 million, which compares with $9.1 million for the first quarter of fiscal 2011. The year-over-year increase was driven by strong growth in the company's Wind and Grid reporting segments.

This is by no means a quick turnaround story, but if you have some long-term money that you aren't counting on for your grandchildren, AMSC is a good buy under $7/share.

The second firm is Bruker Corp (Nasdaq: BRKR) a 50-year-old firm that's a leading provider of high-performance scientific instruments and solutions for molecular and materials research, as well as for industrial and applied analysis.

While its instrumentation division is a compelling story unto itself, this company also has a HTSC division and is also a global player in this sector. Bruker Energy and SuperCon Division (BEST) is a leading manufacturer and developer of HTSC wire products and devices.

In May, BEST announced a large-scale technology transfer contract for its Bruker HTS GmbH subsidiary to license and transfer know-how for second generation (2G) YBCO ceramic tape high temperature superconductors (HTS) to a subsidiary of the Russian state atomic energy corporation, Rosatom. The contract is valued at $25 million.

In addition to providing a license, BEST will also provide training and education services as well as a complete 2G HTS pilot production line to Rosatom, with expected deliveries commencing in 2013. BEST is also very active in the UK, Germany and South Korea.

The recent turmoil in Europe has hurt Bruker's recent earnings and the company has lowered guidance for the rest of the year, so the stock is at reasonable levels.

Bear in mind, this isn't a stock where you wait for its quarterly results. This is a long-term growth play that could return orders of magnitudes on your investment or leave you with a few pennies in your brokerage account.

A high-risk/high-reward high tech proposition, Bruker is a buy below $15.50.

Source :http://moneymorning.com/2012/08/16/investing-in-smart-grid-technology-two-stocks-to-power-up-your-portfolio/

Money Morning/The Money Map Report

©2012 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in