• 5 minutes Oil prices forecast
  • 8 minutes Nuclear Power Can Be Green – But At A Price
  • 11 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 16 minutes Europe Slipping into Recession?
  • 2 mins *Happy Dance* ... U.S. Shale Oil Slowdown
  • 1 day U.S. Treasury Secretary Mnuchin Weighs Lifting Tariffs On China
  • 7 hours Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 16 hours Connection Between Climate Rules And German's No-Limit Autobahns? Strange, But It Exists
  • 3 hours Socialists want to exorcise the O&G demon by 2030
  • 6 hours Maritime Act of 2020 and pending carbon tax effects
  • 22 hours Chevron to Boost Spend on Quick-Return Projects
  • 22 hours Conspiracy - Theory versus Reality
  • 1 day UK, Stay in EU, Says Tusk
  • 2 days What will Saudi Arabia say? Booming Qatar-Turkey Trade To Hit $2 bn For 2018
  • 1 day Regular Gas dropped to $2.21 per gallon today
  • 2 days German Carmakers Warning: Hard Brexit Would Be "Fatal"

Broadwind Energy Drops On Great Earnings, So Buy It

Okay, I’ll admit it, I’m stumped. Broadwind Energy (BWEN) has been on my radar for a while, so I was interested to see what Thursday mornings Q2 earnings report brought. The answer was a slew of good news with big improvements in revenues and margins leading to a profit before extraordinary items for the first time in the company’s history. Great, I thought, Broadwind is fulfilling its potential and has begun to do the thing that corporations exist for…make money.

Unsurprisingly, the initial move in the pre-market was to the upside, and BWEN opened over 6 percent higher than Wednesday’s close at $9.28. Then, shortly after the open, the slide began.

By mid afternoon the stock was trading 2 percent down on the day. Okay, thought I, I must have missed something important, so I went back and listened to the earnings conference call given by management later in the morning. That didn’t really shed any light either. After a great quarter, guidance for revenues next year was lowered slightly, but would still represent growth… maybe it was that? Or, was it the uncertainty that still surrounds the tax credit situation for wind energy? Or was BWEN just dragged down on a bad day for stocks generally?

All of these combined could, I guess, result in a drop, but a company that has no debt, is seeing significant improvement in all divisions, has plans for moderate capital expenditure next year (paid for from cash on hand)…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



Oilprice - The No. 1 Source for Oil & Energy News