A-Power: Silly Me, I Still Like Wind Power

The world no longer needs wind because crude is falling to the $120s. The hedge funds told me.

I am going to stick my hand out, and ignore them, to catch the falling knife that is A-Power Energy Generation (APWR) - which is filling a gap in its chart at $23. The stock is currently at the $23.30s range, so that is close enough for me. This was the name that I did not cut back on in the low $30s last week, trying to curtail trading velocity in the fund, but this market smirked at that decision as all gains must be harvested, lest said gains are quickly demolished within a few days.

As the stock has fallen, it's dropped to a 3.5% stake intraday, so I'm pushing it back up to 3.9% with a few hundred share purchase. Next purchase will be down at $21 range if it gets there. I suppose if crude gets back to $110 the Chinese will stop all wind turbine projects since they are no longer needed.

Disclosure: Long A-Power Energy in fund and personal account

Comments

[aquaculture:]

News this month: "Survey shows Denmark happiest country in the world"
Its now official: more windmills make you happy.
(disclosure: long VWS)

2008 Jul 22 02:06 PM

[ZenInvestor:]

Regardless of the price of oil, we need to stop sending our money overseas for power! No matter what you think about 'Climate Change' we need to change the power business in the USA to protect our national security, and provide stable pricing to our consumers. Wind power is by far one the cleanest and best choices, and the technology is right here in America.

2008 Jul 22 03:02 PM

[CLH:]

This article sounds like a lot of hot air.

2008 Jul 22 03:29 PM

[Maluman:]

article sounds like it's been written by a child...very superficial

2008 Jul 22 07:21 PM

[Piggybank:]

"The world no longer needs wind because crude is falling to the $120s. The hedge funds told me."

I didn't know wind energy was an alternative to fuel transportation, i never saw a windmill on top of a car before. ;)

You would think that other factors, like expensive coal, gas, uranium and rising electricity prices would play a more inportant factor.

Seriously though, the world has been building windmills at a constant accelerating rate for more than a decade now, starting at a time where oil was in it's 20$ range. And now we wouldn't need wind power because "oil is ONLY 120$" ??? That is just so rediculous.

2008 Jul 23 03:37 AM

[FWallace:]

Oil falling fast an furious...

Wind and Solar stocks... where do they go from here ???

Thank You

2008 Jul 23 06:43 AM

[john s. gordon:]

silly piggy - cars don't have windmills, they have sails. anybody knows that.
> jack

2008 Jul 23 08:46 AM

[Piggybank:]

Funny you say that, i was having that crazy idea that maybe we should considering to return to sail with our shipping. Granted albeit high tech sails and high tech light ships.

2008 Jul 23 09:04 AM

[NOWHEREMAN:]

Congress is manipulating the WTI contract. This will have an unhappy ending. Traders do not like external interferance which can come out of the blue by just one Congressional Representative's comment during any given day. They will leave for Greener Pastures.

If you think wild swings are prevalent now, then consider them to be a precursor of things to come, both up and down.

2008 Jul 23 10:43 AM

[aquaculture:]

Some numbers from min. of commerce Beijing.

Projected windpower capacity China:
2007: 6 GW
2008: 10 GW
2010: 20 GW
2020: 100 GW (conservative estimate)

**by 2009 China will become world's largest producer of windturbines

**marketshare foreign (non-Chinese) manufacturers fell from 75% 2007 to 55% now. Beijing mandated all new wind projects have at least 70% Chinese components.

**total expenditures $14.5 Billion projected to 2015. Some 100 Chinese companies active.
ETF (FAN) also has some good exposure: Goldwind, Harbin, Shanghai prime machinery, China High Speed Transmission Equipment Group ltd, China Wind Systems, China Windpower Group ltd.

**All wind components to benefit from 50% VAT discount.

good luck to all
aqua

2008 Jul 23 12:37 PM

[Piggybank:]

Aquaculture, i am just as you long in vws, ( isnt it a abolutly great company? ) and some other wind turbine manufacturers.But i'm very interrested in turbine manufacturers in emerging country's to, like Suzlon. There is no real long term risk, i'd poo on whatever criticism a analyst could come up with on turbine manufacturers, like this tottaly rediculous claim that -120$ oil makes a difference. Anyway i wondered what you thought to be good pure play wind energy company's in China, by preference consolidated turbine manufacturers or development stage wind farmers.

2008 Jul 23 01:58 PM

[stonedinvestor:]

This was a very nice call based off good chart work and indeed the stk has preformed for Mr. Mark. Today it rolled between $27 & $28! I wish I had not been at the beach and had followed along. I airballed at $25 range a while back with this name and watched it march to $28 and beyond. Strong stock. no pe?
~stoney

2008 Jul 24 07:44 PM