WIND CONSOLIDATING

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Sector Snap: Analyst sees wind power mergers ahead
July 29, 2011 (Associated Press)

"The wind power sector is ripe for consolidation and investors may want to start eying potential take-out targets, Jefferies & Co. said in research note…One reason is the depressed share prices for wind companies…

"…[T]he catalyst for a buying spree may arrive in increasing orders in coming months as wind power gains traction in the marketplace…[But wind] power companies are cutting deals in a race to win market share, promising to lower their rates in return for higher payments later if they end up beating their production targets. That might help them win long-term sales, but it will likely hurt their profit margins in the short-run…"

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"With profits and stock prices dampened, mergers and acquisitions will likely heat up…That could be good for investors that get in early and choose their stocks wisely…

"European company Vestas [may be] a possible takeover candidate…Other firms that could participate in the mergers would be industrial conglomerates Siemens AG and General Electric Co…International firms that could be players are China Ming Yang Wind Power Group, Gamesa, Suzlon, Repower, Nordex, Goldwind, and Sinovel…"