An analyst initiating a group is:
a) not up on the nuances, how to read managements, how the issue trades etc.
b) desperate to make a splash.
c) without a track record in the names.
Here's Tech Trader Daily:
Barclays Capital’s Amir Rozwadowski this morning initiates coverage of “clean tech” company stocks, assigning a “Top Pick” status to Tesla Motors (TSLA), meter reading technology maker Elster Group (ELT), Power-One (PWER), and renewable energy plant maker Ameresco (AMRC), while starting A123 Systems (AONE), First Solar (FSLR), GT Advanced Technologies (GTAT), and Itron (ITRI) at Equal Weight.
Rozwadowski thinks investors in clean teach are “once bitten, twice shy,” hence the presence of stock valuations “below recessionary lows.”
Nevertheless, Rozwadowski sees rising energy demand from population growth, and relatively little build-out of the technology at present, offering “a multi-year secular growth opportunity that is too big to ignore.”
With government subsidies curtailed, Rozwadowski sees the industry’s hope pegged to demand for products with “attractive cost/value proposition,” in electric vehicles and energy efficiency; they’ll likely do better than light-emitting diodes and solar energy, he thinks, which are weighed down by overcapacity and “tightening incentives,” he thinks....MORE
