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http://www.thestreet.com/story/10636103/1/alternative-energy… Alternative Energy Losers: A-Power Energy By Eric Rosenbaum 12/01/09 - 05:06 PM EST LIAONING, China (TheStreet) -- Almost every stock in the Chinese alternative energy space was surging on Tuesday afternoon -- all but one: A-Power Energy Generation Systems(APWR Quote). A-Power also happens to be one of the last Chinese alternative energy stocks with an earnings report still to come this week, on Thursday morning. ost of A-Power's Chinese peers -- primarily in the solar as opposed to wind-turbine area where A-Power is strongest -- had earnings stacked toward the end of the season. The general outperformance of the Chinese solar players has created a momentum atmosphere in sector. A-Power had benefitted from that momentum surge also, with a huge run-up in its shares to a 52-week high recently, and was up more than $5 in the past two weeks. The momentum story was the same on Tuesday's trading day, with players like LDK Solar(LDK Quote) at close to a 5% gain, and up almost as much as A-Power was down. A-Power closed with a 6% loss on the day and was trading down in after-hours also. With its earnings only two days away and every other stock in the sector flying toward the sun on Tuesday, what's behind A-Power's sudden fall from grace among investors? Granted, the stock is still in heady territory at $16.16, much closer to its 42-week high of $18.70 than its low of $3. Still, the sell-off in the A-Power shares could represent two important trends: First, the momentum swing that has dominated among Chinese alternative energy players of late takes away gains as quickly as it generates them. Short interest in A-Power has been strong, as a result. Second, after several earnings misses in recent quarters, the market may not have the confidence in A-Power to deliver on Thursday morning when it reports. The huge run-up around the recent earnings in the sector and the Chinese stimulus package could benefit these companies in the long-term -- but with A-Power, people get nervous around the quarterly numbers," said one sector analyst who did not want to be named when talking about A-Power's big talk, and little delivery in past earnings reports. In the last several quarters they have missed their estimates by as much as $10 million to $20 million." On the positive side, the Chinese market, where A-Power's business is primarily based, appears to be recovering. However, many of the big projects for which the company has received a great deal of recent press -- such as a wind-turbine farm in West Texas -- often take much longer to be developed than to simply announce. "The Texas wind farm has not even been approved yet," the sector analyst noted. What will it take for A-Power to reverse today's selling trend? On Thursday morning, A-Power may need to come up with a meaningful surprise in its earnings. Still, investors should not expect that even as they hope for it. "With A-Power, there is always reason to be nervous," the analyst said. -- Reported by Eric Rosenbaum in New York |
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| aus der Diskussion: | A-Power - Irgendjemand investiert? |
| Autor (Datum des Eintrages): | Joe_Up (02.12.09 20:18:27) |
| Beitrag: | 132 von 1,756 (ID:38497626) |
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