APWR, which originally went public under the name Chardan South China Acquisition, has been one of the most successful blank check transactions. The units (which included two warrants) were originally priced at $6.00.
A-Power: Clean Energy in China
A-Power Energy Generation Systems (APWR) is a "green" Chinese company whose Nasdaq-traded stock has been on a tear. Shares of China's largest provider of power co-generation systems have climbed to 17.32 a share, up from 6.15 a year ago. A-Power is also in wind energy. It is building a facility to assemble wind turbines based on technology licensed from European partners. "We visited two of A-Power's generation installations in Shenyang, China, along with the wind turbine site," says Mark Tobin of Roth Capital Partners. They confirmed, he says, the "value proposition" for the power plants and its wind energy business. The stock is undervalued, says Tobin, based on estimated earnings of $1.09 a share in 2008 and $1.39 in 2009. Moreover, A-Power has $100 million in cash and no debt. Another bull is Brian Yerger of Jesup & Lamont, who sees the stock at 25 in a year.
Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.
—Gene Marcial
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