Wind Energy America shares experienced a significant boost in price this afternoon, as two respected analytical firms showed support for the company. As an energy development company based out of Minnesota, Wind Energy America maintains the goal of cultivating a large portfolio of wind farm interests through both development and acquisition.
Early today, alerts were put out by both The BellwetherReport and Beacon Equity Research. In his report, Beacon Equity’s Victor Sula, Ph.D, rated WNEA a ‘Speculative Buy’ with a target price of $2.98, effectively conveying an extreme undervaluation of the stock at present.
Dr. Sula also noted the company’s promising future in his report: “Over the next four years, WNEA plans to complete approximately 280 MW of wind energy projects in the upper Great Plains and Midwest. The company estimates approximately $69 million of external funding will be required to complete these projects, including $40 million from equity financing. Assuming funding is secured and the various projects are completed, WNEA would expand installed capacity to 400 MW over the next four years. At this generating capacity level, the company could be producing annual revenues exceeding $80 million from electricity sales and annual income ranging around $40 million to $45 million.”
An impressive prospect indeed. Wind Energy America is operating in what is arguably the fastest-growing sector of the energy industry. According to a report by Clean Edge Research, the wind energy market stands to grow exponentially over the next seven years, reaching more than $50 billion by 2015; that’s more than four times what it is today. In addition, the Global Wind Energy Council believes that the output capacity of the sector will reach 149.5 GW by 2010, more than doubling current capabilities. These are all factors to be carefully considered when evaluating a company like Wind Energy America, working to develop our country’s power infrastructure of tomorrow, today.
Let us hear your thoughts below: