There’s a good piece from Eric Savitz over at Barron’s discussing the loss of business Broadwind Energy (BWEN) faces following the cancellation by Boone Pickens of half of that large, $2 billion wind turbine order from GE. Broadwind supplies parts to GE for these turbines and the stock is getting hit as a result. The selling picked up yesterday and continues today with record sell volume. A return to the November lows appears inevitable.
Savitz also discusses the credibility problems the company faces. The company revealed in an 8-K filing with the SEC last week that they continue to be affected by the global economic downturn and expects the slowdown in wind and other energy related industries to continue. The problem with that is that the company has apparently been saying the opposite on a recent road show, saying the US wind market is growing quickly and that Broadwind is well positioned. A company lying to investors? Truly shocking.
Hard to put too much faith in Barrons. They’re notorious for bashing solar and wind.