Gamesa Is Most Expensive Wind-Turbine Maker on Buyout Bets
“The share price has been supported by speculation about either a bid for Gamesa from a Chinese competitor or a huge conglomerate,” said Julien Desmaretz, an analyst at Bryan, Garnier & Co. in Paris...
The Spanish company, which reported earnings today, trades at 28 times estimated annual profit. Investors are paying 17 times estimated earnings for Vestas Wind Systems A/S of Denmark, the world’s largest wind-turbine maker, and multiples of 26 for Sinovel Wind Group and 12 for Xinjiang Goldwind Science & Technology Co., both based in China...
Global turbine demand slid for the first time in six years in 2010, falling 5 percent to 35.9 gigawatts, as banks curbed loans to developers, Bloomberg New Energy Finance said. Turbine manufacturing capacity exceeded demand by 37 percent and next year will overshoot by 58 percent, even as installations gain...
noir.bloomberg.com
my comments:
1. the Last Men Standing in wind will be GE, SI, 2 or 3 Chinese companies, and who else? There are too many European wind companies, and too much capacity in the industry.
2. overcapacity in solar hasn't hurt the leading companies, as much as overcapacity in wind has hurt Gamesa, Suzlon, Vestas (judging by how the stocks have done). Does that mean solar is less of a commodity industry than wind? |
