Renewable Energy: Profitable Global Companies
By Johann Bergfort
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Last Friday, the German Federal Secretary of Research Annette Schavan (CDU) announced a national high-tech strategy aimed at reducing global warming.
The world climate council (IPCC) published in its new report that carbon dioxide pollution must be reduced within the next eight years.
Through loads of research on alternative energy, I found some interesting stocks for you, which could rise in the few months.
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The Renewable Energy Industrial Index(RENIXX) has increased by 20% since the beginning of 2007. Nearly too good to be true, isn’t it?
That’s why experts already compare what’s going on with renewable energy today with the German automobile industry a hundred years ago.
Last Friday, the German Federal Secretary of Research Annette Schavan (CDU) announced a national high-tech strategy aimed at reducing global warming.
During the summit, she said that research and strong economies are essential roads to success. Therefore, the Federal Department of Research is going to spend 255 millions EUR ($347.4 million) on research for climate change.
Due to the country’s national economic boom, the secretary called for more money from the common budget. With these financials, the development of technologies will be subsidized to limit the output of carbon dioxide.
Renewable Energy: Germany Declaring Independence
This has been a long time coming. Do you remember the conflict between Russia and the Ukraine?
Last year, the Russians turned its gas pipeline to the Ukraine off because the Ukrainians refused to pay according to gas price increases.
This scenario made feel Germans unsafe and too dependent from other states, especially as more than 40% of gas demand in Germany is imported from Russia.
Renewable Energy: 8 Years Left
The world climate council (IPCC) published in its new report that carbon dioxide pollution must be reduced within the next eight years. Only if the climate killer decreases in the atmosphere will the global warming stabilize.
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There’s no doubt something has to be done: Several reports on climate, continuously rising oil prices, discussions about CO2 pollution and dependence on energy imports has led to a higher interest on renewable energies.
Because the companies in that industry are quite young, you cannot use conventional criteria to determine their values. Some of them haven’t made any gains or even distributed dividends.
Political decisions, which lead to government aid and public discussions, could also make alternative energy stocks rise.
Through loads of research on alternative energy, I found some interesting stocks for you, which could rise in the few months.
Renewable Energy: Global Companies You Ought to Know About
Solar company Solarworld AG (SRWRF.PK) and (ISIN DE0005108401), thanks to big demand in foreign countries, has raised its turnover and returns quite significantly in the first quarter. In comparison to the same quarter a year ago, Solarworld’s turnover has raised about 60% or 132.8 million EUR ($180.6 million). Return is 30% (21.4 million EUR / $29.1 million) higher. Its estimated growth is 20%.
An environmental technology company M.A.X. Automation AG (ISIN DE 0006580905) has a turnover of 15% at 180 million EUR ($244.9 million) and a return of 8% (8 million EUR/ $10.8 million). The company expects growth in 2007 due to high demand for environmental automation systems.
Q-Cells AG (QCLSF.PK) and (ISIN DE0005558662) is the biggest company with the best reputation for producing solar cells. In 2007, it plans to export 60% of its products. Although there is a silicon scarcity, Q-Cells has long-term contracts which will keep them competitive in production. The company’s estimated turnover in 2007 is 33% and in 2008 a whopping 45%. Its return (EBIT) should be 22% in 2007 and 35% in 2008.
Solar Millennium AG (SMLNF.PK) or (721840/S2M) is a global technology company that gives power and technology to solar power plants. It currently has a joint venture agreement with German MAN Ferrostaal for solar thermal power stations. The company’s turnover should rise according to this deal. Its estimated margin should be a positive 4% to 8%.
These are all well worth taking a look at if you’re interested in global investing on the renewable energy trend.
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Johann Bergfort is our German stock analyst for Taipan Financial News.
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