All You Need to Know About Wind Energy

Cramer: Wind Stocks Are Towers of Power (Video, May 7)

A lack of supply for towers has the wind sector on fire, says Cramer. A pure (but speculative) play: Broadwind Energy (BWEN Quote). Cramer thinks "this can be a gigantic, gigantic company."

To watch the video, click the player below:

Plus, don't miss Cramer: Broadwind's the Weather Vane of Wind Sector and Cramer: Buy Nat Gas Now, Wind in '09 on TheStreet.com TV.

From Cramer's 'Mad Money Recap': Woodward Governor's Big Wind Power Play:

[Cramer] called [Woodward Governor(WGOV Quote)] a forward thinker that now estimates its wind power business to be worth $100 million by the end of fiscal 2008, compared to the consensus estimates of only $60 million.

To bolster its wind power business, Woodward recently added its first Chinese turbine manufacturer and is building a new factory in Colorado. He said the company's wind power business is growing at a staggering 150% a year, far more than any "high-tech" company can deliver.

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From Woodward Builds Power Behind the Scenes:

Woodward Governor posted another stellar quarter last night [Jul. 21].

Woodward Governor earned 47 cents a share in its fiscal third quarter and beat consensus estimates of 43 cents (a 9.3% upside beat). Sales grew rose 23% year over year to $329 million, vs. the $308 million consensus (a 6.8% upside beat).

Even better, management issued upside guidance for fiscal 2008. It now sees revenue growth of roughly 20%, up from 14% to 16%, and $1.75 in earnings, up from the previous guidance of $1.61 to $1.66.

The company's business is divided into three segments: turbine systems, engine systems and electrical power systems. It is a front-and-center supplier to the drive for more efficient and cleaner energy systems.

On yesterday's conference call, Tom Gendron, president and CEO, discussed industrial turbine demand, saying, "Emission regulations, growing global energy demands and newer projects such as coal gasification all should provide opportunities for Woodward."

Favorable Winds

Also, Woodward Governor is a stealth play on wind power. In October 2006, it acquired SEG, a German designer and manufacturer of wind power generation products. Although the wind business is still a small fraction of overall revenue, it is growing rapidly. The company has guided to slightly higher than $100 million in revenue for the year (about 9% of total revenue).

Gendron says, "Demand for wind turbines continues to grow at a remarkable rate." The CFO adds, "Again this quarter, wind power sales were very strong."

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