Might be a good time to buy shares of Vestas.
Vestas just released Q2 earnings report, and have somehow managed to turn in a profit. This company has been facing tough prospects with strong competition, European super-crisis, and American cutting of wind subsidies.
I will have wait to read more about their earnings and figure out how they managed to pull in a profit with so many tough factors in 2012.
"Earnings before interest and tax (EBIT) before special items were 40 million euros ($48.97 million) in the second quarter, against a loss of 204 million in the first quarter, Vestas Wind Systems A/S said in a statement with preliminary results.
"Vestas has experienced a strong improvement in earnings and activity level in the second quarter of 2012 compared with the first quarter of the year," the company said in the advance statement which came ahead of official accounts on August 22.
The statement gave no explanation for the improvement.
Second-quarter revenue grew 46 percent from the first quarter to 1.61 billion euros, Vestas said" - Reuters
Right now in 2012, Vestas reminds me a little of Manitowoc back in 2009 spring. The US economic crisis looked to have no possibility for a solution, it looked like no one would buy cranes for 10 years, it looked like the debts were too high, etc. Then everything reversed, and it all looked like it had been a scare. Many similarities with the EU, wind subsidies, etc. Some positive notes of late - US imposed tariff penalties on the Chinese for dumping wind turbine parts recently. So, maybe efforts will be taken by western nations to defend their wind power industry from destruction...
I bought 300 shares today. If Vestas can prove they have turned a corner, are profitable, and can handle their debt- why shouldn't this stock at least double in price?