Juhl Wind (JUHL) focuses on the development, operation, and management of medium-scale community wind farms in the Midwestern United States and Canada. Juhl develops wind power communities in Minnesota, Nebraska and North Dakota. The company also provides development, management, and consulting services to various wind farm projects. Juhl is expanding as the demand for alternative energy sources grows. In August, the company announced three new wind farm projects in Minnesota.
Even though prices of crude oil have declined recently, the per barrel price of around $85 is still more than double what it was five years ago. The US government has attempted to lead the charge for more alternative methods of creating energy beyond traditional fossil fuels. The Global Wind Energy Council expects wind power use to increase by 64 percent over the next three years, which could be a boon for Juhl Wind and its shareholders. More than half of US states have set goals to drastically increase wind power production over the next decade. Currently, only one percent of US energy needs are via wind power, but the Department of Energy has set a goal to raise that figure to 20 percent by 2030.
Estimates suggest it will cost $15 billion a year to meet that goal, another figure that could be pleasing to Juhl Wind’s bottom line. Minnesota-based Juhl Wind has $200 million in wind farms already in use and has about 19 projects in its pipeline. Wind farms are typically found in rural America where farmland is abundant. Local utilities control the wind farms, paying farmers for the use of their land. To date, Juhl Wind has completed 11 wind farm projects. Company insiders hold about 50 percent of Juhl Wind shares, with founder Dan Juhl leading the way with over 3.1 million shares.
What makes Juhl Wind a potentially attractive investment is that it makes money in several ways. The company garners fees for development and feasibility studies for the projects, while construction services, project management and equity ownership make up other sources of revenue for Juhl Wind. The company expects revenue of $4 million this year.
Shares of Juhl Wind closed Wednesday at $3.05 and have traded between $1.40 and $5.40 over the past year. The company has a market value of $61.1 million.
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