A long-time reader was kind enough to point me towards A-Power Energy (OTC:APWR) and its recent activity. This was a name I stuck with for a long time (9 months), while amazed the market could care less about its single digit PE ratio. All it did was drop - no matter what good news they released.
Finally I threw in the towel in early March [Mar 9, 2009: Closing A-Power Energy], and you can guess how the story turns out from there. Regular readers know I am no believer in "market efficiency" either for the market as a whole, or at the individual stock level - this is one of the best examples [Oct 6, 2008: A-Power Energy Announces Huge Contract - Stock Down 30%] - a monster growth rate that no one believed was valid, and I could not find any sucker (other than myself) to buy below $5. Nope they were selling at $4 and even $3. Now with Kool Aid in the air for all things China, plus the fact oil continues up - hence all things alternative energy are catching "fast money" traders... the stock is sporting a $12 spot.
Not that fundamentals matter as traders are playing a thesis, but the company finally hired a CFO this week - what a long adventure. [Oct 7, 2008: A-Power Lets CFO Go] We'll see if this company can communicate better with the new team....
- A-Power Energy Generation Systems Ltd., a China-based power equipment company, on Tuesday said it named Kin Kwong "Peter" Mak to the position of Chief Financial Officer. Mak, 48, joins A-Power from New Dragon Asia Corp., where he held the CFO position from 2004 and 2008. Currently, Mak is a director at a number of publicly traded Chinese companies, including Trina Solar Ltd., China Security & Surveillance Technology Inc. and China Grentech Corp.
- The company said John Lin, who had been serving as the company's acting CFO, has been named to the role of Chief Operating Officer.
A-Power is still cheap at 12x 2009 earnings, but that said people were selling it off at 3-4x earnings. This was one boggling experience.