Wednesday, May 12, 2010

The next leg down for Green Energy.

The world economies wake up one day and say - Hey! I don't have any money. Which is what I think is happening right now. One could wonder if this green energy bullshit is what helped some of these economies go bankrupt. For a 20% return, it certainly is not worth the fiscal price tag.

Anyway - If I were a green energy technology company, I might be shitting my pants. Take for example Vestas. The largest Windmill maker. I've been watching this company for at least a year. The employees took a manufacturing plant in Britain hostage for something like a month last year. They were upset the company had made obscene profits (in their opinion) in the previous quarter. They wanted the government to take the company over to save their jobs.

Well, Vestas turned a "surprise" loss this quarter. I don't know who it was a surprise to, because anyone could have seen this coming. What perplexed me though, was the stock spiking almost 12% on the news that Vestas seemed hopeful for a return to profitability - because they'd gotten a massive order from Portugal.

This is course made my eyes grow as wide as saucers. Self I said - Portugal is going bankrupt. How are they going to pay for this huge order? And... the question remains.

Still when I woke up this morning and saw they'd agreed to cut spending - I found it interesting. I don't think it helps the green energy folks much. But at least maybe they will still get some money instead of loosing the contract full bore.

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