In a recent Penny Stock Detectives article, editor Sasha Cekerevac argues that clean green energy is going to be with us for many decades to come. With the increased consumption by the ever-growing world population, he feels that our infrastructure system is getting taxed and more governments around the world are going to force companies to utilize green energy technology. Cekerevac believes that green energy technologies that utilize natural gas will have far lower CO2 emissions than the alternatives, such as coal. The market view regarding natural gas is that low prices are here for a very long time. This will positively impact corporate earnings of firms utilizing natural gas as an input.
“Considering that the U.S. is now one of the leading producers of natural gas in the world, these low prices will be here for a long time, so firms should use it as a green energy power source,” notes Cekerevac.
According to Cekerevac, one company that is developing green energy technology using natural gas is Capstone Turbine. The company produces microturbine systems, which produce far fewer emissions and pollutants than other energy sources, a green energy source that’s useful to many industries.
According to Penny Stock Detectives, the company reported third-quarter numbers in which revenue increased 13.8% from the previous year, to a total of $27.5 million. While the firm did ship less overall units, the average price per unit increased substantially to $161,000 from $110,000 the previous year, notes Cekerevac. The editor feels that the backlog is also impressive at $115 million, a jump of over $30.0 million from the previous year as green energy demand grows.
Cekerevac thinks that one of the advantages of the firm’s turbines as a green energy source is that they produce far less emissions than traditional power sources, but they have the ability to run the power source on natural gas at the isolated locations. The editor feels that this is a strong selling point for oil firms drilling in remote locations. Corporate earnings of the oil firms benefit by not having to be plugged into the national grid, says Cekerevac, which in some cases means actually running wiring to the remote location. In addition, in many instances, natural gas is a by-product of the oil being pumped and in this way the energy source can be used for very marginal costs, benefiting corporate earnings, according to the analyst.
Cekerevac says that he would keep his eye on this stock throughout 2012; it is definitely in a sweet spot of the market for green energy.
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10 and the stock market in general.
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Sasha Cekerevac, BA, and Danny Esposito, B. Comm., lead editorial stock analysts at Penny Stock Detectives, in conjunction with stock market guru George Leong, B. Comm., have just updated their breakthrough video, If You Missed Apple, Shame on Us; If You Miss This… which highlights a company these stock analysts believe looks very similar to Apple Inc. in its early days. To see the video, visit: http://www.pennystockdetectives.com/video/pt/index.php?sb=PRESS.