The Wind Beneath Trinity's Wings

I have been looking for an alternative energy stock that looks promising for the future. Renewable resources such as solar and wind are investments that we can feel good about.

Recently, I have been intrigued with wind power. Wind power is the cheapest form of renewable energy. It is significantly cheaper for a utility company to build a wind plant than a solar plant. Although natural gas and coal plants are cheaper to build, they are not renewable sources of energy. Now and in the future, I think that utility companies will be pressured through laws and/or subsidies to produce more renewable energy such as wind power.

One company that looks promising in the wind space is Trinity (TRN). Trinity makes the wind towers used to generate power. They have a $1.6 billion backlog for their wind towers. Trinity's revenue from wind has grown 70% in the past 12 months. Their stock is trading around $34 a share with a PEG of .91 and a PE of 10.20, which looks like an attractive valuation.

We've seen how bright the solar stocks can shine. Now I believe it is time to watch the wind stocks take off and fly.

Disclosure: Author has a long position in TRN

Comments

[Barry Robbins:]

Wind energy stocks are going to be like the internet stocks of the late 90's. Seriously! Do your research and you will see that electric utilities are building a lot of wind farms. Why? Because they like the economics of wind. Trinity (TRN) is a great way to play wind. Other wind stocks that I own: Otter Tail (OTTR), Kaydon (KDN) (they make wind turbine bearings), and Zoltek (ZOLT) (they make carbon-fiber turbine blades).

Composite Technology (CPTC.OB) is a start-up wind turbine builder. As is AAER (AAE.V). If you are interested in speculative stocks, I think AAER is going to have a huge year.

2008 May 04 11:58 AM

[richjoy:]

Solar and wind are infant industries. I know there are several solar energy ETFs...are there any ETFs devoted to wind energy?

I ask because I find picking winners among solar stocks to be exceedingly difficult, and assume the same would be true of wind energy stocks...thus I prefer ETFs.

2008 May 04 12:42 PM

[RATHER FISH:]

Blowing in the is the answer. price for gas for boats vs cost of wind for boats. TRANLATE to oil for lives and war. To never ending WIND. It'a a no brainer.

2008 May 04 02:39 PM

[RATHER FISH:]

Blowing in the WIND is the answer.

2008 May 04 02:42 PM

[Paula Johnson:]

Thank you for the excellent wind write up on Trinity.
Trinity is a vastly diversified company. For long term investors seeking a stable play in the rail, highway, shipping, and environmental wind power TRN does all and supplies a nice dividend. Trinity's position in renewable energy is only one of many great offerings by this company.

2008 May 04 02:55 PM

[egghead:]

Long position pumping a company who has lost a backlog of 2000 railcars. What would happen if Boeing lost an order for 100 737s?

2008 May 04 03:17 PM

[globalmacro:]

Jim Cramer is that you? Please give credit to tv pundits when you borrow their ideas.

2008 May 04 06:25 PM

[zawy:]

CPTC.OB is not exactly a "start up". It's more like a spin-off and merger with a strong German heritage. It has over 500 installed turbines with a unique gearing system in its upcoming model that doesn't require the fancy GE-patented electronics for frequency regulation. BCON.OB might also be considered a utility and wind-play. Its flywheels are going to be used in California to even out the voltage and frequency from wind farms as well as traditional plants especially where carbon credits are important.

2008 May 05 06:28 AM