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Wind energy stocks are poised to net huge gains for investors. According to a report written for the Department of Energy by the Lawrence Berkeley National Laboratory, wind power represented the largest source of U.S. electric-generating capacity additions in 2012, constituting 43% of all nameplate capacity additions. It overtook natural gas-fired generation as the leading source of capacity.
But continuing that trend will depend upon reducing overall operating expenses to a point where the generating costs are low enough to make up for the expenses involved with manufacturing and implementing wind energy systems. Only once those issues are resolved will wind energy stocks really soar.
"After all, can an energy source be considered sufficiently profitable to justify broader investment if its break even operations are dependent upon taxpayer support?" Money Morning Global Energy Strategist Dr. Kent Moors wrote earlier this week.
Vestas is the world's leader in wind power applications as the largest wind turbine and auxiliary systems manufacturer in the world.
Since its founding in 1979, the Denmark-based company has installed over 40,000 wind turbines in 65 countries that culminate in a total power capacity of about 38.3 gigawatts (GW). Its turbines produce as much as 3 megawatts (MW) of energy – lightning strikes, large warships like submarines and aircraft carriers, and very large lasers produce or sustain a conversion of energy on the megawatt scale. Wind driven power systems such as wind turbines are getting more cost-efficient as they grow in size and shape, making them an ideal large scale energy solution.
Vestas Wind has a strong hand in the European energy market, but its American Depository Receipts (ADRs) trade in New York, making them accessible to U.S. investors.
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The company's most notable competitors include China Ming Yang Wind Power Group Ltd. (NYSE: MY), Mitsubishi Heavy IND. (OTC: MHVYF), Siemens AG (NYSE: SI), Broadwind Energy Inc. (Nasdaq: BWEN), and American Superconductor Corp. (Nasdaq: AMSC).
Here is a rundown of Vestas Wind's financials – and of competitor wind energy stocks…
Financials on Vestas Wind and Competitor Wind Energy Stocks
In 2010, Vestas Wind generated revenue of about €6.5 billion (over $9 billion), a 36% increase over the previous year, with an estimated gross profit of €1.2 billion ($1.66 billion), up 41% from the previous year. This increase was because of a 23% increase in deliveries.
Despite a $9.53 billion market cap, the Vestas ADRs are thinly traded with a volume of less than 50,000 shares changing hands daily. That makes Vestas very sensitive to market reactions. For instance, from 2011-2012, Vestas stock dropped around 82%, while right now, it's up a massive 412.66% year-over-year.
All of these gyrations certainly point to high volatility in a low-volume trading environment," Moors said. "That means Vestas will be our primary move once the wind sector begins its breakout."
VWDRY stock was priced at $13.89 per share on Friday with 52-week range between $2.43-$14.53. Shares are up so far in 41.48% in 2014. The stock doesn't pay out dividends.
China Ming Yang stock was priced at $2.48 on Friday, with a 52-week range of $1.15-$4.34.
Mitsubishi Heavy IND shares sat at $5.50 on Friday, with a 52-week low of $5.47, and a high of $7.44.
Broadwind Energy shares cost $12.23 on Friday. Its 52-week range was $3.95-$14.
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