A-Power Energy Generation Systems (APWR)

Thats right, no joke, its another green thumb! A-Power is back on sale again and I'm going to simply copy and paste my thoughts from October about the company because nothing has changed. If APWR can just deliver its product (key words here) ON TIME, then they should have no problem hitting $17-18 a share which is where fair value in my eyes would be.

"A-Power provides power grids and power generation systems to industrial companies in China but I think the real potential here lies in their wind turbine production. It's no secret that the past three years have been spent by investors attempting to seek out the next alternative fuel generation stock. We've had solar stocks rally, fuel cell companies jump and even to some extent wind generation companies which is where APWR falls. The revenue growth and profit potential here are huge, the only problem I run into with APWR is their inability thus far to own up to those expectations. Much of APWR's stock price is built upon the expectation of making timely deliveries and receiving payment on its wind turbines. So far, APWR has fallen behind on delivery of all of its wind turbines. If APWR can get its hide into gear, they could be staring down a forward price to earnings of something like 8-9 times 2010 earnings. A-Power has a lot of cash on its balance sheet and could potentially see a near doubling in its revenue next year if all goes well. Either way, A-Power looks like a solid longer-term play if you can get by the gimmick-nature of the alternative energy generation sector right now."

UltraLong