Sometimes there are product applications that one wouldn’t necessarily consider investment grade. They are those products that form the components of a larger system. They aren’t flashy or fancy, but they get the job done. An investor might need to be a bit closer to a market to find these component manufacturers, but if he can find one in a critical needs market, he’ll have found profit.
Composite Technology Corp., a manufacturer and marketer of electric grid and sustainable energy products, works to manufacture and sell electric grid power transmission efficiency and wind turbine products. The company has a committed financial backer in Credit Suisse, which now owns approximately 23.7% of the company – after a June 27 option buy of $40 million of shares.
The company operates through two subsidiary companies, CTC Cable Corporation and DeWind Inc. CTC Cable manufactures transmission cable and rods for power grid transmission lines while Its DeWind operation manufacturers wind power turbines. Through a recently renewed relationship agreement with TECO-Westinghouse Motor Company, Composite Technology Corp. is positioned nicely in a wind turbine market with long backlogs of orders. It has been focusing on 2 megawatt turbines with more advanced turbines under development to meet utility-grade requirements. Currently, the agreement can support 400 turbines per year with expansion-ready plans in place.
The company’s “core” transmission line and rod products will aide in the efficient transport of power across a deteriorating national power grid. From a general perspective, the company makes electric grid products that reduce the amount of power needed to get the flow of electricity moving along the lines without there being a drop in power levels when the electricity gets to its final destination. This, consequentially, reduces the chances for blackouts or “brown-outs.”” Both lines of business are prime movers in today’s economy with a longer term future forming.
Looking at the company’s direction shows a company working within a market that is the “nuts & bolts” of the power industry. It makes the generating equipment and line products to get the power going where it is needed. As the nation’s power system continues to struggle with infrastructure issues, and the world searches for sustainable power, Composite Technology Corp. is positioned nicely to profit regardless of what the future brings.
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