Vestas and NEG Micon have not been able to hold themselves above the current global stock market woes. Share prices of the two Danish turbine manufacturers, which are traded on the Copenhagen stock exchange, have both fallen since January 1. At the start of the year, Vestas shares sold at DKK 500 for a DKK 1 share, and by the middle of last month they were down to DKK 375. NEG Micon shares, which started the year at DKK 500 for a DKK 10 share, have been falling steadily since February and were down as low as DKK 330 last month -- a 25% drop. Share analysts have different predictions for each company and divided recommendations for NEG Micon. While only few doubt that Vestas will be able to reach its expected turnover and profit for 2001 (story above), there is disagreement on NEG Micon's plans for a turnaround from deep financial crisis. The falling share price is bearing out analysts earlier remarks that purchase of NEG Micon shares was a "lottery investment." The release of the company's annual report last month (Windpower Monthly, April 2001) failed to improve things. Two main points cause analysts to worry: that new NEG Micon turbine orders are partly from markets like the US that caused the company problems before its near collapse in 1999; and the outcome of the gear box retrofit program with German Flender, following the company's series gear box failure which led it into crisis, is still unknown. Among 16 Danish and international stockbrokers, seven were recommending "strong buy" last month, four "moderate buy," three "hold" and two "moderate sale." None of them were pushing a "strong sell" ticket.
Windpower Monthly Events
Senior Renewable Energy Analyst (WindGEMINI Product Lead) DNV GL Bristol (City Centre), City of Bristol