Wind Energy Companies

In the wake of the U.S. financial disaster, now is probably a good time for investors to be looking for alternative energy stocks in the bargain bin.

From the looks of things on The Street, it looks like now is as good a time as any to invest in wind energy companies, here’s why…

Wind Energy Companies

The wind energy sector of the renewable energy industry is a strange bird.

In most alternative energy industries it’s been smaller niche players that have perfected one aspect of their industry, secured funding, and went on to greatness.

Certainly that is the case in the solar sector, where First Solar (NASDAQ: FSLR) is the far-and-away winner.

And in geothermal, the same can be said for Ormat Technologies (NYSE: ORA).

But regarding wind energy companies, the exact opposite has largely been the case.

Take General Electric (NYSE: GE) or Siemens (NYSE: SI), for example.

Both of those companies are diversified conglomerates, meaning they produce a variety of products, not just wind turbines. So investing in those companies to take advantage of a surging wind market is probably ill-advised. But that’s not to say those two juggernauts aren’t worthy of investment–just not a pure wind play.

Globally, the scenario begins to change. Both Vestas Wind Systems (CPH: VWS) and Gamesa (MCE: GAM) are devoted entirely to the manufacture of wind turbines and the installation of wind farms.

And both have been highly successful at it. But since buying these companies on their home exchanges is typically very expensive for American investors, it’s unlikely that any of you have bought shares of these companies so far.

If you’re willing to take the risk, you can purchase shares of those companies here on the Pink Sheets. Vestas trades there under the symbol VWDRY. Gamesa can be found under the ticker GCTAF.

But beware, when dealing with foreign companies on the Pink Sheets, you’re dealing with currency conversions and other extraneous factors that could negatively impact your portfolio.

More bang for you buck can be found by taking a look at…

Domestic Wind Energy Companies

I’ll start by simply providing an exhaustive list of wind-related companies that trade on North American exchanges:

• AAER Inc. (TSX.V: AAE)
• America’s Wind energy (OTCBB: AWNE)
• FPL Group (NYSE: FPL)
• Finavera Renewables (TSX.V: FVR)
• Keewatin Windpower (OTCBB: KWPW)
• Mass Megawatt Wind Power (OTCBB: MMGW)
• Nacel Energy Corp. (OTCBB: NCEN)
• Naikun Wind Energy Group (TSX.V: NKW)
• Otter Tail (NASDAQ: OTTR)
• Sea Breeze Power (TSX.V: SBX)
• Shear Wind (TSX.V: SWX)
• Talisman Energy (NYSE: TLM)
• Trinity Industries (NYSE: TRN)
• Western Wind Energy (TSX.V: WND)
• Composite Technology (OTCBB: CPTC)

That’s a list of North American wind energy stocks as I see it. Now, we have to separate the corn from the chaff.

I’d stay away from AWNE, MMGW , OTTR, and TRN.

The rest are probably worth a look if you’re looking to expand or initiate a wind energy portfolio.

FPL is a utility that owns major wind assets. Composite Technology makes and sells both transmission products for wind-generated electricity and wind turbines ranging up to 2 megawatts (MW). AAER is also a wind turbine manufacturer.

The rest are all installers currently in the process of expanding their portfolios. They’re all worth a look, especially if wind grows as forecast over the next ten to twenty years.

As the industry continues to expand, I’m sure there will be new opportunities.

I’ll try to cover them, and anything I may have missed here, in future issues.

To green energy, and green profits,

Chris Hunter