In 2010, the U.S. wind market suffered through its worst year in recent history, and Broadwind shares plummeted. Timing wasn't great for Broadwind shares bottoming out, either, as the company received a big endorsement from JPMorgan's sell side team, a buy call that turned out to be badly timed and burned investors.
Broadwind shares are currently trading at $1.42, vs. a 52-week high of $3.83. It's been more or less straight down for Broadwind shares since the beginning of 2010, when shares were as high as $10.
In its recent investor day presentation, Broadwind noted that revenue had improved year over year, from $21.7 million in the first quarter of 2010 to $43.5 million in the first quarter of 2011. The company's wind tower business saw revenue increase year over year from $12 million to $28.2 million. The company's gearing business, where it is shifting focus to traditional energy and mining, increased revenue year over year in the first quarter from $7.7 million to $13.6 million.However, it's important for investors to remember that the year-over-year comparisons include the trough year of 2010 in the U.S. wind sector. Any improvement does not necessarily equate to sustianable improvement and share growth.
|Peter Duprey, CEO Broadwind Energy|