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Fluor Adds Wind To Its Pocket (FLR, SI, RDS.A)

Fluor Corporation (NYSE:FLR) won a contract from Scottish & Southern Energy to construct a 500 MW wind farm, the world's largest, off the coast of Suffolk in the UK. Fluor will book the $1.8 billion contract in the second quarter of 2008. On Monday, Fluor reported a 63% jump in earnings and revenue growth of 32%, boosting the stock price by nearly $25.00 yesterday. This single project is equal to nearly a third of the company's reported new business in the first quarter of 2008. Fluor's stock is off $1.46 in pre-open trading.  On any other day besides after a huge earnings move, this contract would have likely moved the stock differently.

The Greater Gabbard Offshore Wind Farm will generate enough electricity to power more than 415,000 homes, approximately the entire demand from Suffolk. Each of the 140 turbines will generate 3.6 MW. A division of Siemens (NYSE:SI) will supply the turbines. Construction is scheduled to begin in 2009, and the project is expected to be completed in 2011.

Earlier this month, Shell (NYSE:RDS.A) withdrew from an 1 GW wind farm project located in the Thames estuary that would have generated enough power to supply one-quarter of the homes in London. Shell's move was interpreted as a significant blow to the British government's eventual goal of 33 GW of offshore wind capacity, which would provide electricity to every home in the country. Today's announcement by Fluor takes some of the sting out of that ill-wind.

Paul Ausick
May 14, 2008

Lazard's Alternative Energy Calls (CSIQ, LDK, JASO)

Between late yesterday and early today, Lazard Capital Markets' Sanjay Shrestha has keyed on many of his alternative energy picks after earnings or other news.  Among the calls are Canadian Solar, Inc. (NASDAQ: CSIQ), LDK Solar Co. Ltd. (NYSE: LDK), and JA Solar Holdings Co. Ltd. (NASDAQ: JASO).  Below are the notes for each call:

• Canadian Solar, Inc. (NASDAQ: CSIQ) shares are up 31% to $44.85 after the company just trounced the earnings estimates.  Shrestha at Lazard maintained his buy rating.  But he raised estimates for 2008 EPS estimate to $2.15 from $1.30 and 2009 estimate to $3.40 from $1.60 to reflect the companies continued traction and capacity ramp.  His price target is now $50.00 from $24.00, reflecting a 15-times 2009 EPS.
• LDK Solar Co. Ltd. (NYSE: LDK) was maintained as a HOLD rating, despite the company posting higher numbers than Shrestha's estimates.  The HOLD rating reflects his view that LDK is fairly valued at current levels on the 2009 EPS estimate from Lazard of $2.20 versus consensus of $3.72.  LDK shares are down almost 3% at $36.40.
• JA Solar Holdings Co. Ltd. (NASDAQ: JASO) has also been maintained as a BUY rating, and Shrestha noted that the $300 million convertible note offering will allow the company to ramp production faster.  Shrestha raised the MW guidance to 345 from 300 for this year, and therefor raised his estimates on earnings and revenues as well.  JA Solar's $32.00 target is based upon a rough 20-times earnings for 2009.  JA Solar's stock is up over 6% at $23.55 today.

Jon C. Ogg
May 12, 2008

Can Solar Drive Applied Materials Earnings? (AMAT)

Tuesday after the close, we’ll get to see earnings out of Applied Materials Inc. (NASDAQ: AMAT). The estimates for the semiconductor fabrication company from First Call are $0.22 EPS on $2.14 billion in revenues.  Next quarter estimates are $0.26 EPS on $2.28 billion in revenues. Estimates for fiscal Oct-2008 are $1.01 EPS on $8.95 billion in revenues.

Analysts have an average price target north of $24.00.  Applied Materials’ 52-week trading range is $16.13 to $23.00.  Shares are still in the middle of its 52-week trading range and it really just looks like the stock has support $1.00 under and resistance $1.00 higher based on its trading bands.

Shares closed up 3% Monday after the company described another win for its solar operations, and that is where we think the focus will be.  This one still has the multiple of a chip cap-ex and equipment player rather than a solar player.

Jon C. Ogg
May 12, 2008

JA Solar Earnings Overshadowed By $300M Offering (JASO)

JA Solar Holdings Co. Ltd. (NASDAQ: JASO) came out with earnings this morning of $0.14 EPS vs. First Call estimates of $0.11 on a 234% rise in revenues to $160 million vs. estimates of $147.6 million.  The company is also reaffirming an equivalent revenue base of $1.03 to $1.14 Billion, which had previously been estimated at $990 million to $1.10 Billion.  First Call had estimates at $989.2 million. 

JA Solar also reaffirmed its Fiscal-2008 total production output of 340 MW minimum, and it sees a total annual production capacity at a minimum of 500 MW by the end 2008.

What is keeping a lid on the stock here is that the company is making offerings of $300 million in senior convertible notes due in 2013 and a borrowing and lending ADS agreements being borrowed by underwriters.  It is also entering into an ADS lending agreement, and an entry into capped call transactions.

In connection with hedging the capped call transactions, JA Solar expects to enter into various over the counter cash settled derivative transactions related to the ADS's after the pricing of the notes and to purchase ADS's in secondary market transactions shortly after the pricing of the notes.

Here is this week's full solar player earnings preview roster (JSAO, CSIQ, LDK, YGE).

Jon C. Ogg
May 12, 2008

Applied Materials Wins EU Solar Management Pact (AMAT)

Applied Materials, Inc. (NASDAQ: AMAT) has announced a contract award for its SunFab Performance Service™ program which would guarantee the performance cost and output of the Applied SunFab™ Thin Film Line.  This is for producing solar modules, enabling continuous cost reduction based on megawatt output. Applied signed a multi-year agreement to provide the SunFab Performance Service to T-Solar Global S.A. in Spain for the Applied SunFab Thin Film Line.

The SunFab Performance Service allows customers to quickly ramp production and to optimize the efficiency and productivity of their SunFab™ Line.  Using 5.7m2 glass panels, the SunFab Line can reduce the cost of utility-scale PV installs by more than 20%.

Applied will manage T-Solar’s SunFab Line performance with engineering, logistics, technology and automation software solutions; it will also provide improvement programs and factory optimization to enable low operating cost and on-going productivity gains.

The line is expected to have a nominal rated capacity of 40 megawatts per year when fully operational.  Financial terms have not been disclosed.

Jon C. Ogg
May 12, 2008

Solar Earnings On Deck (JASO, LDK, CSIQ, YGE)

This week is an extremely important week for solar stocks and alternative energy stocks. JA Solar Holdings Co. Ltd. (NASDAQ: JASO), LDK Solar Co.Ltd. (NYSE: LDK), Canadian Solar Inc. (NASDAQ: CSIQ), and Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) are all up on the earnings deck this week.

JA Solar Holdings Co. Ltd. (NASDAQ: JASO) is the first of the solar companies to watch.  Monday's estimates from First Call are $0.10 EPS on $146.6 million in revenues.  The next quarter estimates are $0.15 EPS and $179.9 million, while fiscal Dec-2008 are $0.85 EPS on $984.4 million.  JA Solar is Chinese and it is thought of by many as one of the cheapest cost producers with some of the closest and firmest supplies of silicon to make solar pv cells.  This has been a monster performer since coming public early last year and many consider it one of the cheapest of the solar stocks.

LDK Solar Co.Ltd. (NYSE: LDK) is also set to report earnings Monday, and this has been one of the more controversial names in solar power for traders.  It is still down more than 50% from its highs, and is now up almost 100% from its lows since right before we covered this one securing silicon contracts and having its orders fully booked up.  We already gave guidance for its targets but the estimates for this quarter are $0.39 EPS on $217.29 million in revenues.

On Tuesday, we'll see earnings out of Canadian Solar Inc. (NASDAQ: CSIQ).  This solar player's estimates from First Call are $0.31 EPS on $151.88 million in revenues.  Next quarter estimates are $0.34 EPS on $167.6 million in revenues, and the fiscal  Dec-2008 estimates are $1.60 EPS on $730.7 million in revenues.  This one is up huge by some 400% or more since its September 2007 lows.

On Thursday morning, we'll see earnings out of Yingli Green Energy Holding Co. Ltd. (NYSE: YGE).  First Call has estimates pegged at $1.33 EPS on $1.47 Billion.  Estimates for next quarter are $1.38 EPS on $1.5 Billion in revenues and fiscal Dec-2008 estimates are $6.54 EPS on $6.84 Billion in revenues.

As a reminder, many estimates will have changed by the time the Tuesday and Thursday report gets here.  Also, with the performance that has been seen in these names you have to understand that for any real rally to be sustained based upon the actual earnings report that these have to "beat earnings targets and raise guidance."  Those that don't beat will likely either see profit taking or just outright short selling.

• Citi recently gave mixed coverage to other solar stocks.
• We recently highlighted the new solar ETF.

Jon C. Ogg
May 11, 2008

Citi Analyst On Solar Express (ESLR, FSLR, SPWR)

Citigroup has initiated coverage on several of the solar stocks in new coverage this morning.  There may be other stocks attached to this full report, but these are the three we have seen so far early this Friday morning our of Citi. 

Evergreen Solar Inc. (NASDAQ: ESLR) started as Sell; shares are trading down 4% at $8.55 in pre-market trading.

First Solar, Inc. (NASDAQ: FSLR) started as Buy; shares trading up 2% at $282.00 pre-market.

SunPower Corporation (NASDAQ: SPWR) started as Hold; shares indicated down almost 1% at $83.00 in pre-market trading.

Jon C. Ogg
May 9, 2008

Jon Ogg produces and edits the "10 Stocks Under $10" weekly newsletter for 247WallSt.com.

CO2 Trading Going Mainstream (NDAQ, NMX, CME)

In the 1990's, carbon certificate trading was mostly unheard of.  This has also been largely untapped by American companies and by the American public.  Until Now.

The New York Mercantile Exchange, Inc., the subsidiary of NYMEX Holdings, Inc. (NYSE: NMX), also announced that it will introduce a U.S. Regional Greenhouse Gas Initiative carbon allowance futures contract in the third quarter of 2008 that will be traded on the CME Globex, under the CME Group, Inc. (NYSE: CME).  This is expected to be the first exchange-traded contract for compliance with a government cap-and-trade program in the U.S.

It also looks like the NASDAQ OMX Group Inc. (NASDAQ: NDAQ) intends to launch a new index family for carbon dioxide emissions certificates this summer in its efforts with Nord Pool, according to Dow Jones.  After looking at Nord Pool's website this has only been available to private investors, so this could be a real game changer.

The Chicago Climate Exchange, part of Climate Exchange plc (CLE.L), has allowed people to trade carbon futures now for years. 

If you want to do some research on your own about what is coming down the pipe, here are just a few of the links we have followed from over the years:

• http://carbonfund.org/
• http://greenfutures.com/news/
• http://climateexchangeplc.com/
• http://www.carbonexpo.com/
• http://www.chicagoclimatex.com/

Carbon emission certificates are not without controversy.  While it does address the issues, many refer to it as a "pay to pollute."  That is an argument that will go on for years and we have no interest in getting in the middle of that.

It almost looks in a way like the U.S. may have joined the Kyoto Protocol, even if it isn't official.

Jon C. Ogg
May 8, 2008

Lazard Hikes First Solar Target (FSLR)

There is an interesting call after First Solar Inc. (NASDAQ: FSLR) blew past earnings expectations and guidance today.  Lazard Capital Markets alternative energy analyst, Sanjay Shrestha, has reiterated his BUY rating on the stock.  But his target has been raised to $300.00 from $350.00.

Shrestha noted that its output translates to a throughput increase to 45MW per line, up from 44MW in 4Q07, suggesting capacity of 1,035MW by year-end 2009.

He believes that First Solar has $6.4 billion of total volume to be shipped under long-term contracts and it additionally has a 7.5MW order with SCE in Blythe, California, pending CPC.  Considering a factory cost ramp, efficiency/throughput gains, and lower cost/watt in Malaysia, Shrestha said he is raising 2008-2010 estimates.

This new $350 higher target represents a 40x multiple on recently raised 2010 estimates of $10.00, discounted back 15% for one year.

Interestingly enough, Shrestha's target of $350 is well under some other analyst targets out there.

Jon C. Ogg
April 30, 2008

Oppenheimer's Lack of Enthusiasm for Ethanol (AVR, PEIX, VSE)

Oppenheimer has initiated coverage of the down and out US-ethanol sector, and the group was given a lackluster "Perform" rating.

"Perform" ratings have been assigned to Aventine Renewable Energy (NYSE: AVR), Pacific Ethanol (NASDAQ: PEIX), and VeraSun Energy (NYSE: VSE).

With most of these stocks down by two-thirds or more from their 52-week highs, this won't help a beleaguered sector.  If you watch SEC filings, you will have probably seen that Bill Gates' Cascade fund has been selling more and more of those Pacific Ethanol positions (although he took most funds out long ago).

With the exception of the farmers and businesses that this is helping out, it becomes very difficult to find people who still believe the US-based ethanol program does any good other than helping boost the cost of agriculture. 

As we have maintained: "If Iowa wasn't the first state on the presidential election circus, ethanol would be handled far differently."

Jon C. Ogg
April 25, 2008

Cramer Breaking Wind Power Analysis (TRN, OTTR)

On tonight's MAD MONEY on CNBC, Jim Cramer continued his GREEN WEEK stock picks. Tonight he wanted to cover the buy on weakness for these stocks and tonight he covered wind power stocks. He said it is impractical in many parts of the country, but he noted many parts where wind will work.  Cramer did note that the wind power tax credit could expire at the end of the year, and that would hurt the sector even though this is the cheapest energy out there.  Here are his picks:

• Trinity Industries Inc. (NYSE: TRN) was one Cramer thought was only a rail car company, but they also have a wind operation for wind towers that was 6% of 2007 business in 2007 that may be 10% soon.  At 8-times earnings and with it down 40%, he said he was wrong in his negativity last night.  This stock closed up 3.5% today at $28.21, and shares rose 4.5% after his tout to $29.50; its 52-week trading range is $21.91 to $49.70.
• His favorite play on wind power is Otter Tail Corp. (NASDAQ: OTTR) that is a boring utility serving in the Dakotas and Minnesota that owns a wind construction company called "DMI" with huge growth the entire worth of the company. Cramer said that Otter Tail could reward shareholders in a spin-off. Shares rose 4% after-hours on this one to $37.45.  If you go back to February, you'll now know why maybe Bill Gates owns a huge portion of the company.

Earlier this week he has gone over various alternative energy stock picks that will work under various presidential candidates.  Cramer went over his picks that he thinks will win in natural gas on Tuesday and on Monday night he returned to talk about his old picks in alternative energy stocks from 2007 with his updated Buy, Hold, or Sell recommendations on those.

Jon C. Ogg
April 24, 2008

New Solar ETF Outperforms Main US Components So Far (TAN, FSLR, STP, WFR, SPWR)

On April 15, the Claymore/MAC Global Solar Energy Index ETF (NYSE: TAN) was launched on ETF leader, the NYSE Arca. Under the ticker “TAN,” the ETF tracks 25 solar power industry companies globally for a total market cap of $5.8 billion.

The majority of the businesses are tied to solar in the ETF and are in the U.S., China, and Germany. The active stocks that trade in the U.S. on NYSE or NASDAQ are First Solar Inc. (NASDAQ: FSLR), MEMC Electronic Materials Inc. (NYSE: WFR), and Suntech Power Holdings (NYSE: STP).

Claymore believes that recent "green" trends, favorable government policy, increasing volumes of venture capital investments, and improving technology industry will drive growth and returns for the fund.

It was launched at $25.84 on April 15 and shares closed at $26.90 today. The fund has reached as high as $27.50 (also today) and hasn’t closed below the initial launching price.  That puts the solar ETF up 4.1% since the lauch, aven after a drop of 0.7% today. 

Of the top four constituents that trade actively in the U.S., the performance based upon todays closed and compared to the open on April 15 for exact comparison is as follows (with the percentage of the ETF for representation):

• First Solar Inc. (NASDAQ: FSLR) is over 8% of the ETF weighting, up 0.8% since the ETF opened; .
• Suntech Power Holdings (NYSE: STP) is 6.24% of the ETF weighting, up 0.78% since the ETF opened;
• MEMC Electronic Materials Inc. (NYSE: WFR) is 5.1% of the ETF weighting, actually down 0.4% since the ETF opened;
• SunPower Corp. (NASDAQ: SPWR) is 4.7% of the ETF weighting, actually down by 0.4% since the ETF opened.

Cramer's Green Picks For Each Presidential Candidate (FSLR, COMV, SGR, NRG, COMV)

On CNBC's MAD MONEY this evening, Jim Cramer said that as part of his green week and in picking alternative energy stocks, he wanted to identify which stocks would win under the alternative energy projects under each presidential candidate.

On the Democratic side, he said he wanted to identify which stocks would win under both Hillary Clinton and under Barack Obama.  He noted how the alternative and renewable energy policies are pages and pages on their websites. These were the following:

• For solar power, he's still gung-ho booyaah-ing First Solar (NASDAQ: FSLR).
• For a smart electric grid play, he thinks Comverge (NASDAQ: COMV) is the play.
• Lastly, he thinks agriculture stocks are the winners with all their lobbying.  But.... these aren't green companies.

On the Republican side, Cramer identified the picks he thinks will do well under John McCain.  He also noted that his policy on alternative energy is less detailed and only one web page on his website.  These picks are as follows:

• McCain has been a pro-nuclear fan, and his main pick is Shaw Group (NYSE: SGR) as the builder and designer of nuclear facilities.  His second pick was NRG Energy (NYSE: NRG) as the main nuclear power promoting utility in the U.S.
• Cramer also said that McCain also believes in a smart grid, and that pick is also Comverge (NYSE: COMV).

Last night, Cramer went over his picks that he thinks will win in natural gas and on Monday night he returned to talk about his old picks in alternative energy stocks with Buy, Hold, or Sell recommendations on those.

Jon C. Ogg
April 23, 2008

Plug Power Backer Files To Unplug (PLUG)

Plug Power Inc. (NASDAQ: PLUG) has just filed a shelf registration for a secondary offering of 39.5 million shares of common stock.  Based on recent prices that translates to a $135+ million offering, and that compares to market cap of $282.6 million after a 5% stock price drop today.

These shares may be offered and sold from time to time by Smart Hydrogen, Inc., which is a stockholder of Plug Power Inc.  It appears that all proceeds if and when shares are sold will go to the shareholder.  It appears that this holding also came about from a 2006 private placement where the company received $217 million in gross proceeds.

Plug Power, Inc. is a low-priced early stage company which engages in the design, development, and manufacturing of fuel cell systems for stationary and motive markets.

You can join our open email distribution list to hear about other secondary offerings, IPO's, key financings, secondary offerings, spin-offs and other special situation previews.

This is one we have screened several times in the recent years, but the company has not been in the real "revenue generation stage" that we like to see.  But interestingly enough, this one has been public this entire decade and back in the tech bubble its shares briefly traded  at a price of more than $100.00.  That is one of the reasons why we have been keeping this one on our watch lists for that newsletter. 

The company is one we have also been watching as 2008 and 2009 are supposed to be years where product sales start to look real, although these are still small.  We currently have two other alternative and renewable (or less-brown) green energy stocks as active picks for our "10 Stocks Under $10" weekly newsletter.  PLUG is not currently on that list.

Shares closed down about 5% at $3.21 today, and the 52-week trading range is $2.42 to $4.75.

The company offers GenCore, a hydrogen fueled Proton Exchange Membrane (PEM) fuel cell system to provide back-up power to businesses and governments in critical infrastructure.  Its GenDrive is a hydrogen fueled PEM fuel cell system to provide motive power to light industrial vehicles. Its "developing products" include GenSys as a natural gas or liquid petroleum gas fueled continuous power system to support off-grid electric generation products, and a high-temperature polybenzimidazole combined heat and power fuel cell system for light commercial and residential applications.

Jon C. Ogg
April 22, 2008

Jon Ogg is a producer of and editor for both the Special Situations newsletter and the "10 Stocks Under $10" weekly newsletter for 247WallSt.com; he can be reached at jonogg@247wallst.com and he does not own securities in the companies he covers.

Cramer Revisits Green & Alternative Energy (FSLR, FWLT, SGR, BWA, WFR, FTEK, TTEK, OMG)

Because of Earth Day and because of a strong performance, Jim Cramer came on CNBC's MAD MONEY tonight after a week off and said he wanted to revisit which ones to buy and hold now that the entire portfolio he gave is up some 76.8% (or up about 35% on an ex-First Solar basis).  Down below you can see the updates from the past to see what he said, but first are the ones he reviewed:

• First Solar (NASDAQ: FSLR) up over 300%, but it doesn't need subsidies. He thinks the new administration will bring it in.  The payback is cheaper and faster because it doesn't need silicon.  Cramer noted that this was to solar what Intel was to chips.  He wants to stick with it.
• Foster Wheeler (NASDAQ: FWLT) has risen 97% and is his favorite infrastructure play, which should work even higher.  Cramer thinks this one can be bought now without a pullback.
• Shaw Group Inc. (NYSE: SGR) is the play on nuclear energy and he would stick with this one.
• BorgWarner Inc. (NYSE: BWA) was play for clean emissions, but he thinks this one should be dumped.
• MEMC Electronic Materials Inc. (NYSE: WFR) is also up big but Cramer thinks this should be dumped because of recent execution problems.
• Tetra Tech (NASDAQ: TTEK) was a water play that rose only about 1.6%, but it is becoming the right place because of rapidly deteriorating domestic infrastructure.  It now has a wind energy company.  He thinks you can buy it now.
• FuelTech (NASDAQ: FTEK) has come back off since he said SELL, but now you can reload on it.  He said sell it once, and he thinks it is going up on increasing efficiency of coal plants. He also likes that insiders have been buying stock recently.
• OM Group (NYSE: OMG) is an emissions play, but now that it has recovered you can take profits in OM Group or just sell it.

Here was the summary for Cramer's "original" Alternative Energy & Green Stocks if you want to compare then to now.

We have been highlighting some of the smaller green tech and alternative or renewable energy picks in our own weekly "10 Stocks Under $10" newsletter.  Of those picks, our Capstone Turbine Corp. (NASDAQ: CPST) is up roughly 150% and the only "selling" we have yet to note is perhaps some profit taking to lock in a portion of your gains, but we think this one is heading higher.  Our other pick has only been on the list in the under $10.00 newsletter for a few weeks, and it is already up about 30% since.  We actually just raised our expectations on this one.

Jon C. Ogg
April 21, 2008

SunPower Beats, Traders Fade News Initially (SPWR)

SunPower (NASDAQ: SPWR) has posted $0.39 Non-GAAP EPS on revenues $273.7 million.  This translates to $0.15 GAAP EPS.  These numbers are above plan according to First Call estimates of $0.35 non-GAAP EPS and $245.2 million in revenues.

The company is also raising guidance. It sees Q2 2008 non-GAAP EPS $0.48 to $0.52 on $330 million to $350 million revenues, which compares to estimates of $0.46 EPS and $295 million in revenues.  It also sees non-GAAP gross margin of 23% to 24%. For fiscal 2008 the company sees non-GAAP EPS of $2.10 to $2.20 on $1.3 billion to $1.375 billion revenues, while First Call has estimates at $2.07 EPS and $1.27 Billion in revenues.

It is also reconfirming 2009 forecast for total revenue to increase at least 40% from 2008 levels. If we interpolate this it translates to "at least" $1.82 Billion to $1.925 Billion, which compares to First Call targets of $1.88 Billion.

SunPower also noted that it is still aggressively expanding solar cell production by more than 150% in 2008 compared to 2007.  It expects silicon supply costs to decline by approximately 10% during 2008 and expects to reach its targets of 30% gross margin, 10% operating expenses and 20% operating margins on a non-GAAP basis, no later than the first quarter of 2009.  It also believes that 100% of projected solar cell production is secured with contracted silicon through 2010, and below is a table of its expected output:

MEGAWATT CAPACITY         2008    2009   2010
Nameplate capacity:                214     414     574
With Silicon Agreements:        255     450+    650+

Shares of SunPower are seeing a bit of a "sell the news" this morning and are trading down by more than 3% at $96.00 in pre-market trading.  The 52-week trading range is $51.00 to $164.49.  Based on yesterday's close, these forecasts would give the company roughly a 47.4 to 45.2 forward P/E ratio (non-GAAP).

Jon C. Ogg
April 17, 2008

Jon Ogg produces the Special Situation Investing Newsletter.  He can be reached at jonogg@247wallst.com and he does not own securities in the companies he covers.

Capstone Analyst Target More Than Doubled (CPST)

There was an interesting call that came out late yesterday in the alternative energy and green energy sector regarding Capstone Turbine Corp. (NASDAQ: CPST).  Lazard Capital Markets has been positive on this one and had already been deemed aggressive with a call for more than a double, and the new call is for more than a double yet again.

Lazard's Sanjay Shrestha has reiterated his BUY rating on Capstone, but his $2.50 price target has been jacked up all the way to $6.00.  This reflects higher 2009 targets to reflect growing sales momentum and further penetration in key markets with revised revenue estimates of $50 million, up from $40 Million, after new orders have been coming on strong in the last few weeks.

Shrestha noted, "We believe the company is in the early stages of rapid growth. Capstone is clearly gaining solid traction in its target markets with improving product economics and a growing service revenue component.... We expect the shares to continue to move higher on several near-term catalysts, including additional awards from its target end markets...."

This new target reflects a 25x multiple on a recently increased F2012 EPS estimate of $0.50, discounted by 25% for three years; and it reflects an increased shipment projection for 2012 of 400 MW, up from 200 MW.

Capstone remains an active pick on our own weekly "10 Stocks Under $10" newsletter.  We have been on this one since $1.21 and have only recently noted that investors should take at least a little profit on part of the position, although we want some funds to stay in Capstone as it should head higher.  To date, it is grossly under-followed by Wall Street. Those profits should be rolled into our new "go-to" alternative energy stock that is also in the "under $10" category, and even trial memberships can get access to our new pick in the alternative energy sector.  We had always maintained that Capstone could go to $4.00 or higher rather than $2.50, and our new pick in the group is already up by 17% in the two weeks since we added it to our active list.  Our target on the new call was for a gain of nearly 50% if our price target was hit, although our target was very conservative compared to other existing price targets.

You can join our open email distribution list to hear about key calls, IPO's, special financings, restructurings and more.

Jon C. Ogg
April 15, 2008

Jon Ogg produces the Special Situation Investing Newsletter.  He can be reached at jonogg@247wallst.com and he does not own securities in the companies he covers.

Trina Solar, Profitability Over Internal Expansion (TSL)

Trina Solar Ltd. (NYSE: TSL) is halting the development of a previously announced polysilicon production facility, which originally had a total estimated cost of some $1 Billion.  Less than two weeks ago, the company announced it had secured long-term supply pacts over an 8-year period.

The solar photovoltaic products maker in China said its related equipment supply contract with a unit of GT Solar International Inc. will lapse as a result of this capacity not coming on-line.  This strategic decision came after what the company called a careful assessment of raw material requirements, along with recent and favorable long-term polysilicon market and supply condition developments.

Trina Solar's stock closed on Friday at $38.00, and shares are indicated up about 3% between $39.25 and $39.50 in early pre-market trading this morning.  Its market cap is close to $950 million and the company is currently profitable.  Its 52-week trading range is $25.88 to $73.06.

At first this sounds cautionary in that the added capacity won't be there.  But the shares indicating higher on the news as this implies more rewards for profitability monitoring rather than just capacity expansion  now that it secured longer-term pacts.

You can join our open email distribution list to hear about special financings, secondary offerings, IPO's, M&A, and more previews for other special situations in various stages.

Jon C. Ogg
April 11, 2008

Jon Ogg produces the Special Situation Investing Newsletter.  He can be reached at jonogg@247wallst.com and he does not own securities in the companies he covers.

West Texas Wind Farm Funded (BP, NRG)

Fortis Merchant Banking has successfully closed syndication of a $280 million senior secured financing for Sherbino I Wind Farm LLC.  This west-Texas wind farm is a joint venture owned by BP plc's (NYSE: BP) BP Alternative Energy North America Inc. and NRG Energy, Inc. (NYSE: NRG).  Interestingly enough, this syndication was oversubscribed with nine banks joining the deal.

Fortis Merchant Banking structured and underwrote the financing, which is comprised of a construction loan of some $280 million, which will then convert into a 15-year term loan in the amount of $140 million at the commercial operation date.

Fortis acted as the sole bookrunner, and the financing is accompanied by a long-term fixed price gas hedge provided by Fortis Energy Marketing and Trading. The hedge was designed to accommodate wind intermittency risk and provides Sherbino I Wind Farm with greater revenue stability for the term of the hedge.

According to the BP site, the Sherbino wind farm will be completed in stages, with an initial stage consisting of fifty Vestas V-90 3MW turbines.

If you have looked through various reports from 247WallSt.com in our alternative energy index or in our oil & gas index, you will see much coverage on alternative energy ranging from wind to solar to wave power to turbines to fuel cells and so on. 

It no longer matters whether or not global warming is fact or fiction on the business front.  Green energy and renewable energy are mainstream now.  Some projects were viable at $40 oil, but with $100 oil you can do the math.  Imagine if once upon a time committed itself to the mantra, "We just want to sell soft drinks, that bottled water trend isn't something we are interested in."   

Jon C. Ogg
April 4, 2008

Jon Ogg produces the Special Situation Investing Newsletter; he does not own securities in the companies he covers.

MEMC Warning (WFR)

MEMC Electronic Materials (NYSE: WFR) is seeing shares spanked this morning.  The company has issued downward guidance with Q1 revenues of about $500 million.  The problem is that previous guidance was $560 million and First Call was at $559.2 million.  It also sees Q1 gross margins of approx 52%, compared to prior guidance of about 54.8%.

The company experienced an accelerated buildup of chemical deposits inside the new expansion unit at its Pasadena, Texas facility on multiple occasions, and each instance required several days of downtime for maintenance to clean and re-stabilize the unit.  The utilization of the Pasadena facility was about 20% lower than Q4 and resulted in much lower than anticipated output.

Despite a softening economy and despite it being a materials supplier for semiconductors, this has become such a go-to supplier stock for solar cells materials that this much downside isn't accepted by traders.

Shares closed at $76.39 yesterday, and they are trading down 10% in pre-market trading at $68.75 pre-market.  Its 52-week trading range is $49.70 to $96.08.

Jon C. Ogg
April 3, 2008

Capstone Orders & Analyst Drive Gains (CPST)

Capstone Turbine Corp. (NASDAQ: CPST) is gapping up in pre-market activity.  The culprit is yet another order.  This was a $5 million order for 150 microturbines for hybrid electric buses from DesignLine International.  Shipments will be sent to DesignLine's North Carolina plant through summer 2009.

Capstone Turbine is still an active pick in our "10 Stocks Under $10" weekly newsletter.  We have had this one as active on the list as one of our top picks for low-priced stocks.  With shares having hit $2.44 this morning, this represents a 100% gain since our pick.

Interestingly enough, Lazard Cap[ital Markets' Sanjay Shrestha came out this morning and maintained a BUY rating on Capstone.  With his target being $2.50, we'd either be expecting a slight reduction in rates or a raised target from the analyst.  Our target was significantly higher in percentage terms and despite a 100% gain we have not removed this one from our list.  Since this stock has gone from an R&D stage with grant and study revenues into a production stage company, it has reached the point where many alternative energy analysts can actually begin following the company.  Shares used to trade exponentially higher than this in the earlier part of this decade.

Just last week we added another low priced alternative energy stock to that "10 Stocks Under $10" weekly newsletter and the target range for that would look for a 50% to 100%+ gain if the various target scenarios are reached. 

Jon C. Ogg
April 2, 2008

Jon Ogg produces the Special Situation Investing Newsletter and he can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Trina Solar Locks-Up Supply Pacts (TSL)

Trina Solar Limited (NYSE: TSL) has announced that it has signed a long-term polysilicon supply agreement with a subsidiary of GCL Silicon Technology Holdings Ltd.

Under the terms of this agreement, GCL Silicon Technology will supply Trina Solar with virgin polysilicon supplies that are sufficient to produce roughly 2,600 MW of solar modules in total over an eight-years period.  Trina will begin accepting delivery of polysilicon supplies at predetermined prices in April of 2008.  That won't be a steady or constant annual yield as the start deliveries are likely far smaller today than would be expected several years out.

Trina Solar noted that it has now secured about 95% of its estimated silicon feedstock requirements for 2008, which represents an equivalent of about 195 MW based on a production target of 200 to 210 MW of module output.

Trina Solar shares are up close to 4% at $34.00 in early pre-market trading, and its 52-week trading range is $25.88 to $73.06.

Jon C. Ogg
April 2, 2008

Jon Ogg produces the Special Situation Investing Newsletter and he can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Lazard Maintains Solar Buys (ENER, CSIQ, ESLR)

Lazard Capital Markets analyst Sanjay Shrestha has come out maintaining his Buy recommendation on several names in the alternative energy space.

• Energy Conversion Devices (NASDAQ: ENER) maintain BUY rating and $40.00 target.  Lazard met with the management team and views it as a one of the best turnaround story in the solar space; after many decades of being an R&D company, it has recently moved towards commercialization and growth under new leadership.  It places a high-$20's value on Solar operation, and a $12 value on the company's Ovonics unit. It currently places no value on its COBASYS unit, although it could add value in long-term.
• Canadian Solar (NASDAQ: CSIQ) was also maintained as a BUY rating with the current $21.24 price being short of the $24.00 price target.
• Evergreen Solar (NASDAQ: ESLR) was also maintained as a BUY rating with its $9.09 being well short of its $15.00 target.

We have featured several of these alternative energy names in our own "Stocks Under $10" weekly subscriber letter.

We frequently discuss restructurings, activist investor trends, IPO's, back door plays into IPO's, SPAC's, spin-offs, and more on our open email distribution list.

Jon C. Ogg
April 1, 2008

Jon Ogg produces the Special Situation Investing Newsletter and he can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

IPO Filing: Energy Recovery Inc.; A Desalination Play (ERII)

Energy Recovery, Inc. has filed to come public via an initial public offering.  The company lists that it will sell up to $175 million in stock in the offering, although that is merely for filing purposes and no shares count nor price range has been indicated.  Energy Recovery has applied to take the ticker "ERII" on NASDAQ.  Citigroup and Credit Suisse were listed as joint book-runners or co-leads on it.

The company is a developer and manufacturer of efficient energy recovery devices utilized in the rapidly growing water desalination industry.  It operates primarily in the sea water reverse osmosis segment of the industry.

In the process, high pressure is used to drive sea water through filtering membranes to produce fresh water.  Its primary product, the PX Pressure Exchanger, helps optimize the energy intensive process by recapturing and recycling up to 98% of the energy in the high pressure reject stream, thereby reducing energy consumption by an estimated 60% as compared to the same process without any energy recovery devices.

It has also noted its system deliveries.  Energy Recovery estimated that its devices shipped as of December 31, 2007 reduce electricity consumption in desalination plants by approximately 300 megawatts relative to comparable plants with no energy recovery devices. Assuming a rate of $0.08 per kilowatt-hour, this would result in annual electricity cost savings of approximately $210 million in the aggregate, which would equate to a reduction in carbon dioxide emissions of approximately 1.5 million tons per year.

As of December 31, 2007, it noted having over 4,000 PX devices shipped to desalination plants worldwide, in locations such as China, Europe, India, Australia, Africa, the Middle East, North America and the Caribbean.  Net revenues have grown from $4.0 million in 2003 to $35.4 million in 2007.

We frequently discuss IPO's, back door plays into IPO's, spin-offs, and more on our open email distribution list.

Jon C. Ogg
April 1, 2008

T. Boone Pickens, Back to Higher Oil Prices on CNBC (CLNE)

Legendary oil investor and magnate T. Boone Pickens has been on CNBC this morning making comments on the current oil environment and current pricing.  As far as his prior call for "$10 off" he said, "I Think I made a mistake."  Now he said he doesn't think that will happen and he thinks oil will hang around $100 in Q2 and any US recession will be offset by global demand.  Demand was off last week, but supply is still 85 million barrels per day and you can't get supply up.  Demand is up globally.  Pickens also believes that maybe it's off $5 or so, but he thinks the second half is oil above $100....

As far as natural gas, he said he's pretty bullish there.  The ratio used to be 7:1 for oil to natural gas and it's currently above 8:1 even after the recent run, although he did note that he wouldn't play a spread right now.  Pickens also gave a level that if traditional spreads existed you would have roughly $14 natural gas today.

In the next 6-months he did note that oil could pull back, and he's not sure how deep this recession can get in the U.S.  But he also noted that he thinks it would have to be a serious global recession to affect the demand-side of the equation.  Whether or not he was briefly bearish and looking for a pullback, Pickens apparently isn't in the camp that oil is heading too far south or at least not in a major way.  He believes that he won't live to see $50 oil again.

Pickens is not just bullish on oil as he wants to get off the U.S. addiction to foreign oil and fossil fuels.  His Clean Energy Corp. (NASDAQ: CLNE) provides natural gas as an alternative fuel for vehicle fleets via fuel stations, although these are not located nationwide yet.  He has noted wind power and other renewable energy forms as alternatives to the US power generation that could allow natural gas to be used for vehicles.

Pickens will be on CNBC throughout parts of today, so his comments will probably keep coming across wires for several hours today.

Jon C. Ogg
March 25, 2008

Analyst Sees 100%+ Upside In Many Solar Stocks (ENER, ESLR, FSLR, SPWR, STP)

Lazard Capital Markets' Sanjay Shrestha, who covers alternative energy and infrastructure for the firm, has come out and maintained his Buy ratings on many key solar stocks this morning.  The catalyst is ahead of Photon International annual Photovoltaic Technology Show next week in Munich, Germany.  Here are the targets on several stocks:

• Energy Conversion Devices, Inc. (NASDAQ: ENER) maintained BUY with $26.57 current price, target price is $40.00.
• Evergreen Solar (NASDAQ: ESLR) maintained BUY with $8.39 current price, target price is $15.00.
• First Solar, Inc. (NASDAQ: FSLR) maintained BUY with $209.50 current price, target price is $250.00.
• SunPower Corporation (NASDAQ: SPWR) maintained BUY with $68.24 current price, target price is $185.00.
• Suntech Power Holdings Co. Ltd.(NYSE: STP) maintained BUY with $34.45 current price, target is $90.00.

Shrestha's favorite long-term names remain SunPower, Suntech, and First Solar, with Suntech and SunPower having significantly underperformed the group YTD.  He also noted, "We believe companies with the right strategic alignment for silicon supply, a vertically integrated model providing sourcing flexibility, and solid downstream presence will perform well."

We have noted several alternative energy stocks in our "10 Stocks Under $10" weekly newsletter and we have two active calls.  One of the calls just went on for the first time this week after its stock price reached greatly oversold levels.  The upside if it hits our target was close to 50%, yet the average target from analysts would be essentially a stock double if the stock reaches their targets.

Jon C. Ogg
March 25, 2008

Jon Ogg produces the Special Situation Investing Newsletter and can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Analyst Looks For Big Upside In FuelCell Energy (FCEL)

Lazard Capital Markets has a call out in the fuel cell sector from earlier this morning on FuelCell Energy, Inc. (NASDAQ: FCEL).  Analyst Sanjay Shrestha has maintained his Buy rating, but he has also maintained his $15.00 price target.

Shrestha recently hosted investor meetings with senior management of FuelCell Energy and he still believes its outlook remains strong with near-term catalysts, and he thinks it has the best bookings and backlog in its history.  Management also noted that it will have financing in place for two upcoming major projects that will add about $43 million to the backlog.  Shrestha also believes it will gain more traction from California and from Korea.

• 247WallSt.com has had this under review to be included in future "10 Stocks Under $10" weekly newsletters.  As this has been hit hard of late, we will now be reviewing this one closer.  Shrestha has a solid record on many of these small cap alternative energy stocks on a selective basis.  Capstone Turbine was another name we have looked at further after his research call, and that one has risen 50% since bing added to our "Under $10" newsletter.

The $15 target is based upon a 30x multiple on two potential revenue scenarios and EPS of $0.90-$1.20 over the next 4-6 years, discounted by 20% back four years.  Shrestha also noted that it has a solid risk/reward as its current backlog is $84.7 million, not including the above note, and FuelCell Energy has $137 million in cash and equivalents.

On a more conservative side, Shrestha noted, "Given the current market environment, and assigning a low-20s multiple on our earnings scenario, we arrive at a target of about $10, suggesting meaningful upside. Risks: FuelCell Energy is in the early states of commercialization; the company needs to balance cash burn while establishing traction in key strategic markets."

With shares up 1% at $5.85 this morning, this would leave an upside of roughly 70% to his conservative number and some 155% to the $15.00 target.  FuelCell's 52-week trading range is $5.43 to $13.14, so shares are barely above 52-week lows and still have a long ways to go before challenging its 52-week highs.

Jon C. Ogg
March 20, 2008

IPO Withdrawl: Renewable Energy Group (RWE)

Renewable Energy Group has withdrawn its application to come public via an IPO.  You can probably guess the culprit: "....current market conditions do not support a public offering of the Registrant’s Common Stock at this time."

What is interesting is that this sort of undermines the agriculture and bioenergy trades.  Agriculture has remained a hot sector, but alternative energy has gone from hot to cold.

This company said in its filing that it was the largest operator, marketer and distributor of biodiesel in the U.S. under the SoyPOWER® brand.  You can see the full summary from the July filing here.

Jon C. Ogg
March 17, 2008

Ascent Solar Pounded Over Secondary Offering (ASTI)

Shares of Ascent Solar Technologies (NASDAQ: ASTI) are down over 13% this morning after the company filed with the SEC Friday to sell common stock worth $80 million.

$80 million doesn't sound like much on the surface, but this developer of thin-film photovoltaic modules has a mere market cap of $119.5 million.  The proceeds are earmarked to be used for development of approximately 30 Megawatts of rated capacity.

The book-runner for the offering is listed as Bear Stearns (BSC), although we'll have to see how anything related to Bear as un underwriter plays itself out over the coming weeks.   Cowen & Co., Jefferies & Co., and Merriman Curhan Ford are listed as the co-managers for the offering.

Ascent's shares down $1.64 to $10.44 in early morning trading, which is quite a drop even for the size of this offering.  Shares closed at $12.07 Friday afternoon, and it has traded between $6.50 and $28.35 over the last 52-weeks.

Jon C. Ogg
March 17, 2008

LDK Solar: Fully Booked Up, Stock Still In Gutter (LDK)

LDK Solar Co., Ltd. (NYSE: LDK) came out with projections showing thats backlog for its solar wafer capacity is fully booked for 2008 and more than 90% booked for 2009. 

The company confirmed that it increased its inventory levels to $380 million at the end of 2007.  It also noted that inventory in transit was the most significant portion of the increase, growing from 263 metric tons to 752 metric tons during the quarter as LDK purchased silicon material from manufacturers around the globe.

LDK also gave an "environmental update" showing its methods of maintaining ecologically friendly processes, which is after reports that its supplier has dumped toxic waste and after previous headline issues.  The company does have plants under construction, so it better hope everything runs on time and that no emergencies or accidents come up.  The stocks is way off of highs now.  Shares closed at $20.43 yesterday, yet the 52-week trading range is $19.69 to $76.75.

This almost trades as a value stock, assuming there are no problems that haven't yet come out.  This one has been under fire and has more than one critic, so those "values" might have an asterisk behind them.  Analysts have an average target north of $50.00.  If estimates are accurate, First Call has 2008 EPS targets at $1.74 EPS and 2009 targets at $3.80. 

Jon C. Ogg
March 13, 2008

Suntech Power Hikes Raised Funds in Convertible Offering (STP)

Suntech Power Holdings Co., Ltd. (NYSE: STP) has priced $500 million of 3.00% Convertible Senior Notes that are due in 2013 in a private offering to qualified institutional buyers. What is interesting about the capital raise besides the expansion it will see, is that the original amount to be raised was $425 million and this pricing is for $500 million.  The conversion rate also seems fairly cheap when you consider the performance of this one and where it has traded before.

There is also an additional $75 million that can be used for over-allotments. The initial conversion rate is subject to adjustment, but it is 24.3153 ADS per $1,000.  This represents an initial conversion price of approximately $41.13 per ADS). The sale of the notes is expected to close on March 17, 2008.  This one closed at $30.24 yesterday, and the 52-week trading range is $28.91 to $90.00.

Suntech will use about $300 million in proceeds for procuring upstream supplies, the balance for production capacity expansion, and new technology commercialization.

One call we have seen for this one was a call out of Lazard Capital, who has maintained a Buy rating with a $90 target.

Jon C. Ogg
March 12, 2008

Applied Materials Solar Strategy Paying Off (AMAT, CY, SPWR)

Applied Materials (NASDAQ: AMAT) saw a major run on Tuesday.  Despite a warning out of Intel the night before, the company is diversifying out of chip cap-ex and equipment dominance into a strategy of being a solar play.  This morning the semiconductor equipment maker disclosed in an SEC Filing a $1.9 Billion solar equipment sales agreement.  This is technically being listed as a total purchase price for the equipment and related services outside of post-warranty services that will be provided by Applied materials for approximately $1.9 Billion.

The sales agreements are with a private non-US corporation where it will supply equipment and installation and warranty services for several solar factories being constructed by the buyer. These factories will feature Applied SunFab equipment that will collectively produce an annual expected output of solar PV modules capable of generating electricity on a "gigawatt scale."

We have covered a $475 million acquisition made last year that was going to allow Applied Materials to get away from its chip cap-ex strategy into also being one of the solar leaders in a field that is booming.  On what was a negative day on Wall Street, shares closed up 7.6% to $20.32, and that is now toward the upper-end of the $16.13 to $23.00 trading range over the last 52-weeks.  Applied Materials' market cap is $27.8 Billion and its fiscal October-2007 revenues were $9.734 Billion. 

If you have paid attention to Cypress Semiconductor (NYSE: CY) and its partial spin-off of SunPower (NASDAQ: SPWR) you will understand that it did show an incredible return for a while.  While Cypress has been cut in half over the last year, it did literally move almost 300% from bottom to top before giving back its gains.

Who knows, maybe we'll get a spin-off of Applied SunFab down the road.

Jon C. Ogg
March 4, 2008

Lazard Defends FuelCell Energy Ahead of Earnings (FCEL, FTEK)

Lazard Capital Markets' Sanjay Shrestha has come out defending FuelCell Energy (NASDAQ: FCEL) ahead of tomorrow's earnings report.  The firm expects another strong quarter from the company.  It also notes a an attractive risk/reward metric and is maintaining its BUY rating.

Lazard has forecast revenues of $17 million and a loss per share of $(0.26), versus consensus of $16.2 million and $(0.26).  Here are some pending projects noted by Shrestha: "We expect FuelCell to report another solid quarter of additional bookings traction in key markets and ongoing cost/ kW reductions. During the quarter, the company announced more than 9MW of new awards, including a 3.9MW contract with the Linde Group and a 4.8MW order from POSCO Power."

Lazard is also looking for an update on the CT150 projects totaling 16.2MW recently approved by the Connecticut Department of Public Utility Control, and anticipates an update on the status of the 19.6MW Danbury "Triangle" project.

This target price of $15 represents more than a 100% gain from today's prices and this stock has seen a 52-week trading range of $6.15 to $13.14.  This target reflects a 30x multiple on two potential revenue scenarios and EPS of $0.90-$1.20 over the next 4-6 years.

We would also note that Fuel Tech, Inc. (NASDAQ: FTEK) is scheduled to report earnings after the close tomorrow.  We recently gave a full preview on this one, and the companies are similar in name only.

Jon C. Ogg
March 4, 2008

The Business Day In Global Warming (CSIQ, FTEK, TSL, GE, GOOG, CS, SOPW, AKNS, JASO, ENER, CPST)

Canadian Solar (NASDAQ: CSIQ) issued and sold $75 million in 6.0% Convertible Senior Notes due 2017 in a private placement on December 10, 2007, and in a filing today investors were given the right to resell their notes and/or converted shares.  This one also reports earnings on Wednesday of this week.

We'd note that Fuel Tech (NASDAQ: FTEK) is soon to report earnings, this weekend we issued a full earnings preview.  Also, we'll see earnings out of Trina Solar (NYSE: TSL) on Tuesday.

Cnet News ran a great piece today showing how the American Council on Renewable Energy organized the press conference for Tuesday to publicly lobby for extended tax breaks and credits for renewable energy firms beyond 2008.  Well-known energy investors and business people from General Electric (NYSE: GE), Credit Suisse (NYSE: CS), Google (NASDAQ: GOOG) and others are said to be involved.

SCHOTT AG of Germany broke ground today on a $100 million initial investment for a 200,000 square foot manufacturing facility outside of Albuquerque, New Mexico for its SCHOTT Solar, Inc. unit.

A boutique research firm called Global Hunter initiated coverage of Solar Power (OTCBB: SOPW) and Akkena Solar (NASDAQ: AKNS) with a neutral rating on each.  In another call, Zacks.com showed an interview with one of its analysts talking up JA Solar (NASDAQ: JASO) and Canadian Solar (NASDAQ: CSIQ), as well as Energy Conversion Devices (NASDAQ: ENER).  That can be seen at Zacks.com

Capstone Turbine Corporation (NASDAQ:CPST) announced that RSP Systems completed installations of New York’s first microturbines in four location under the City’s new rule for residential and commercial use.  This stock is up roughly 50% since we added this one to our "10 Stocks Under $10" newsletter, and we haven't yet taken our foot off the gas.... nor off the turbine.

As a reminder, whether you prefer the term "Global Warming" or "Climate Change" is not the issue as far as 247WallSt.com covers it. Green business has become big business, and this affects many public companies today.

Jon C. Ogg
March 3, 2008

Fuel-Tech Readies For Earnings (FTEK)

On Wednesday we’ll get to see earnings out of Fuel-Tech, Inc. (NASDAQ: FTEK). The estimates for the combustion engineering solutions provider (cleaner coal) from First Call are $0.17 EPS and $28.04 million in revenues.  Next quarter estimates are $0.12 EPS and $25.39 million in revenues. Estimates for fiscal 2008 are $0.55 EPS on $107.87 million in revenues.  As there were discrepancies and as many analysts have changed targets on this one ahead of earnings, we'll make an update on any key changes before the earnings release.

Analysts have an average price target north of $31.00, still some 50% north of current prices.  Fuel-Tech’s 52-week trading range is $14.15 to $38.20.  This remains one of the key potential beneficiaries of high coal demand and the need to clean up the coal process.  But its valuations and its stage where it is still dependent upon individual contracts have plagued the company for some time.  This is one of the more volatile names in all of the cleaner energy and alternative energy sectors, and its guidance is more important than current numbers for determining forward valuations.

Jon C. Ogg
March 1, 2008

The Business Day In Global Warming (BP, GE, RZ, CCTC, SAI, ASTI, TTEK)

BP plc (NYSE: BP) announced that it has moved into full construction of Phase One of the Sherbino Wind Farm, a 150 megawatt renewable wind energy project that is roughly 30 miles east of Ft. Stockton, Texas.  BP also valued its green businesses in wind, hydrogen, bio-mass, and solar as being worth $5 to $7 Billion, and said it will look at how best to realize that growing value for shareholders. This may be a sale or spin-off, if not look for joint-ventures or partnerships.

General Electric (NYSE: GE) disclosed that it entered into a more than $700 million supply pact for more than 500 megawatts of renewable wind energy with Renewable Energy Systems Americas Inc., an Austin, Texas, wind developer, with wind turbines for projects in 2009 and 2010.

We'd also note that last night Jim Cramer interviewed presidential candidate Hillary Clinton, and they briefly discussed "all renewables" as a solution to dependence upon foreign oil.  No mention was made of nuclear though.

We saw some key downgrades in the solar sector yesterday out of Banc of America.

Raser Technologies, Inc. (NYSE Arca: RZ) signed a memorandum of understanding with Tecstar, LP and Wheel to Wheel, LLC, outlining their intent to work together with Raser to manufacture plug-in hybrid electric vehicles (PHEV) for utility, government, and other fleets.

Clean Coal Technologies, Inc. (Pink Sheets:CCTC) signed an agreement with The Benham Companies, LLC, a subsidiary of Science Applications International Corporation or SAIC, inc. (NYSE: SAI) to support commercialization of CCTI's coal cleaning plants in China.

Ascent Solar Technologies Inc. (NASDAQ: ASTI) and ITOCHU Corporation of Japan announced that the companies will begin work toward the development of one or more strategic cooperation relationship in machinery for Ascent Solar's planned 100 MW manufacturing facility, raw materials for solar modules, future distribution of Ascent Solar products in Japan, and more.

Tetra Tech, Inc. (NASDAQ:TTEK) was awarded three wind energy projects for engineering, procurement, and construction services totaling about $150 million by western utility PacifiCorp. Work on the three projects will begin immediately and is expected to end in December 2008.

As a reminder, whether you prefer the term "Global Warming" or "Climate Change" is not the issue as far as 247WallSt.com covers it. Green business has become big business, and this affects many public companies today.

Jon C. Ogg
February 28, 2008

Jim Cramer Interviews Hillary Clinton

On CNBC's MAD MONEY, Jim Cramer interviewed presidential candidate Hillary Clinton on several economic issues.  Keep in mind this was a mere ten minute segment, so this was far from a full economic policy session with all the points.  These comments are all paraphrasing, so please understand any slight discrepancies on a word for word basis.  Below are the comments, and Cramer's questions or statements are in bold.

Cramer said Hillary was well ahead of the curve in identifying the housing crisis.

• Hillary said that many people were mislead into scam mortgages, and that regulators haven't done enough.  She wants a 90-day moratorium on foreclosures and to freeze adjustable rate mortgages.  "We need bolder action, and we need it now."

Cramer talked about unleashing the FHA as far as those who cannot refinance the houses they live in.

• Hillary said she advocated that and the FHA would have to raise limits.  Inflation is up and these uncharted waters are going to be hard to navigate.

Cramer asked about Washington playing a role in the mortgage problem. 

• Hillary said this was entire unprecedented.  She noted many borrowers were mislead with over-enthusiastic appraisals and the scam went from top to bottom.

As far as NAFTA, Cramer noted that a NAFTA suspension would create a major economic shut-down.

• Hillary said there is actually an opt-out in NAFTA, it's been on the books for 14 years and it is time for a change to the rules.  She said she wants balanced growth.

Cramer then asked about inflation and "burning food" at the expense of food prices, part of his ag-flation theme. He said if we scrapped ethanol it would bring those prices down.

• Hillary said it is a little more complicated, but rising corn and soybeans have contributed.  She said we are in a transition period that requires all forms of alternative energy and she then noted cellulosic, wind, solar, and new forms of energy for cars. She wants more hybrids and more plug-in cars.  She did NOT note anything about nuclear power plants, and Cramer didn't go there even on a sidebar comment.
• Here were some prior Cramer comments there on ag-flation: Last night Cramer said to put several of the ag-flation beneficiaries on your shopping list after these stock prices take a hit after this week;  he also featured another stock as a hidden value agriculture stock; here were his "wild bull market picks" in the sector last year if you'd like to compare.

Cramer asked "Are you going to eliminate the low taxes on dividends on stocks?"

• Hillary said we might see some increas