Remaining Wind Companies Benefit from Lower Competition and PTC Extension Improves Margins

Wall Street Transcript

67 WALL STREET, New York - February 20, 2013 - The Wall Street Transcript has just published its Alternative Energy Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Grid Parity Timelines for Alternative Energy - Asia Pacific Demand for Solar Energy - Alternative Energy Generation - Solar Energy Pricing - Government Subsidies and Regulation - The Rise of the Energy Efficiency Market - LED Adoption in Large-Scale Projects - Long-Term Opportunities in Emerging Markets - Solar Growth Drivers and Headwinds

Companies include: Broadwind Energy, Inc. (BWEN) and many more.

In the following excerpt from the Alternative Energy Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Given that, are there any stocks specifically that you do expect to benefit from the extension, and have you made any ratings changes?

Mr. Blansett: We have not made any ratings changes associated with the extension of the PTC. We've been neutral on Broadwind (BWEN), and it's really the only wind-centric stock we cover. It's not a pure play anymore, given the company's need to diversify outside of wind.

However, we did raise our estimates for the company because of the expectation that there would be more wind power demand in 2013 due to the PTC extension. And also, I think, specific to those companies that have remained in the wind industry like Broadwind, they have had a lot of their competition drop out. Many companies have said they were done with wind given the uncertain outlook.

Many participants in the wind sector are moving on, rationalizing the weak demand outlook and making the decision that they have to exit before the actual end of the line occurs and the end of the PTC subsidy. I think those companies that continue to sell into the U.S. wind sector in 2013 are probably going to have incrementally less pricing pressure.

Specifically for Broadwind, the wind tower sector has had some antidumping decisions handed down. Some of the low price foreign suppliers out of Vietnam and China are not going to be as impactful in 2013 as they have been in the past. So even though Broadwind may not have nearly as good a year as last in 2012 and will likely see a significant demand decline in wind towers on a unit basis, the company may see incrementally better margins due to a reduced level of competition...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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