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Hi All: I´m an individual investor that´s writting a blog for Spanish readers about North-American Markets, to share information and investment ideas in the other side of wide Atlantic. Improving knowledge about NorthAmerican markets to Spanish investors will help to improve confidence to make... More
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EL NIDO DEL AGUILA
  • Gamesa Corp. Could Be Near A Turning Point. 2 comments
    Jul 29, 2012 6:29 AM | about stocks: GCTAF, EWP

    Good Morning:

    Gamesa Corp is the 4th largest wind turbines manufacture by market share globally, now it´s trading on Spanish Ibex-35 at €1.16, so with a book value of 6.48 €. Mr.market is trading Gamesa at 0.18 book/value ratio. Let me tell you, a non sense rational valuation...

    Of course Gamesa is navigating in a difficult regulatory and low grade investment environment, but still bills for 1.64B€, just in last quarter, business margins in Wind energy builders are low, but with oil prices skyrocketing, Wind energy is a competitive and clean energy source for utilities and clean energy Investing funds with faith in the future of renewable energy.

    Gamesa USA is improving its sales in N.America due (tax credits expirations in clean energy) and S.America as a new growing market, but Europe, India & Asian markets are still weak, but in my humble opinion we´re in the low end territory of the economic cycle for renewable energy business.

    Tech.speaking and watching Gamesa Corp. Weekly graphs, last week made a nice bottom Hammer with volume, that could change Gamesa´s long downtrend. We´ll see what´s about...

    Have a nice day.

    elnidodelaguila.eu

    (click to enlarge)

    Disclosure: I am long OTCPK:GCTAF, EWP.

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Comments (2)
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  • You are right. now GAM already trading at 1.72! I think there is a very nice support at 1.70. Tried breaking that point several times but always closes above 1.70.

     

    Book value wise is crazy. I am willing to discount the book value by 50% and it is still at 3 euros!
    10 Sep 2012, 04:09 PM Reply Like
  • Author’s reply » Hold tight, Gamesa Corp. is still a bargain to hold long
    19 Sep 2012, 08:00 AM Reply Like
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