NASDAQ Adds Five to Clean Edge Green Energy Index

Trends Push New Ventures Into Investment Spotlight

NASDAQ has announced new additions to its Clean Edge Green Energy Index, with the following five companies added to the Index: Broadwind Energy, Inc. (Nasdaq:BWEN), Comverge, Inc. (Nasdaq:COMV), Capstone Turbine Corporation (Nasdaq:CPST), ESCO Technologies Inc. (NYSE:ESE), and National Semiconductor Corporation (NYSE:NSM).

Of the five new additions to the index, two fall under the ten-dollar per share price level: Broadwind Energy and Capstone Turbine.

A Mighty Wind: Expanding World Demand for Clean Energy Solutions

Broadwind Energy (BWEN 8.10) has a national US presence in the wind energy business and provides an integrated supply chain in energy services, heavy steel fabrication, gears and bearings, towers and transportation for wind energy systems. 2008 revenue grew to $217 million from $29 million in 2007, with nearly $100 million of that increase derived from organic growth.

BWEN has around 100 million shares outstanding, and despite booking a $7.0 million operating loss in the first quarter of 2009, has seen its share price recover from recession lows well under $3.00 to current levels in the $8.00 to $9.00 range after touching July highs of $12.00.

The primary trend driving growth for BWEN is obviously expanding world demand for clean energy solutions. As an integrated wind energy provider, BWEN offers exposure to the trend through participation in a number of industry sub-sectors, and as such looks to be somewhat diversified, rather than a pure play on turbines, for example.

A Powerful Combination: Demand for Green Energy and Smart Grid Technology

Capstone Turbine Corporation CPST 1.49 makes and markets micro turbines used in stationary distributed power generation applications. In other words, on-site power generation independent of the power grid. Capstones turbines run on a wide range of fuels and are efficient and green, with extremely low emissions. For example, fuels include natural gas, propane, sour gas, and renewable fuels such as landfill or digester gas, kerosene, diesel and biodiesel. The systems use no oil or liquid lubricants and create ultra low emission energy, heating and cooling through an advanced combustion system.

The company has been selling products in the market since 1998, and booked $66.0 million in sales for fiscal 2009, compared to $44.5 million in 2008. Capstone has approximately 188 million shares outstanding. The company shows a 26-cent loss per share for 2009.  Share prices have risen from recession lows of $0.40 to the current $1.40 range.

Two underlying trends ought to drive Capstone's continued success. First, demand for green energy. Second, development of the smart grid that will enable owners of distributed power generation systems to sell energy back into the grid.

A Red Hot Sector with a Green Future Prediction

Cleantech and green energy promise to be hot sectors, sectors that create headlines and garner exceptional public attention for the foreseeable future, which can only benefit companies such as Broadwind and Capstone.

CPST looks particularly interesting due to its relatively modest share price, at the $1.50 level, and because it offers exposure to both efficient clean energy and smart grid growth potential.  Both BWEN and CPST share prices could advance as their earnings begin to trend up, as the public returns to the stock markets, and as EPS (earnings per share) multiples expand in a bull market environment.

The NASDAQ Clean Edge Green Energy Index tracks the performance of clean-energy companies that are publicly traded in the U.S. and includes companies engaged in the manufacturing, development, distribution, and installation of emerging clean-energy technologies such as solar photovoltaics, biofuels and advanced batteries.

The companies' stocks must meet minimum requirements for market value, average daily share volume, and price. The Index is evaluated on a semi-annual basis in March and September.

About the Author

Financial analyst Blake Desaulniers identifies trends and emerging market opportunities in Cleantech, Nanotech and Energy sectors. His http://www.financialprofilesmedia.com website helps investors find companies whose share price is poised to explode by exploiting technological breakthroughs.