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Shares of Alternative Energy Surge

Posted on: Saturday, 16 August 2003, 06:00 CDT

By DINAH WISENBERG BRIN

PHILADELPHIA (AP) -- Shares of alternative energy companies surged Friday as much of the Northeast staggered back from the nation's largest blackout.

"When you get these sort of events like blackouts or a perceived power crisis, the market tends to look toward alternatives," analyst Andrew Bradford of Raymond James said.

Plug Power Inc. (PLUG), a fuel-cell company that develops power generation systems for commercial and residential buildings, climbed 98 cents, or 23 percent, to close at $5.16.

American Power Conversion Corp., which makes uninterruptible power supply devices for computers, ended up $1.82, or 11 percent, $17.98.

Shares of several other companies rose as well.

Bradford said of the strong showings, "For the most part, there are traditional solutions as well" adding that such gains tend to be temporary.

A note from RBC Capital Markets said the outage highlights the weakness of the power grid as the major cause of disruptions and could act as a catalyst for alternative distribution and backup-power companies.

RBC cited FuelCell Energy Inc., which develops large stationary fuel-cell power plants designed for localized generation and grid support, among other companies. FuelCell closed at $9.40, up $1.60, or 21 percent.

The firm also mentioned Ballard Power Systems Inc. (BLDP), which RBC believes could launch a commercial backup power product this year.

Ballard closed at $12.85, up 64 cents, or 5.2 percent.

Itron Inc. (ITRI), an energy technology company, could benefit from increased investment in transmission and distribution, RBC said.

RBC Capital Markets managed or co-managed a public offering of Ballard securities in the past 12 months. The firm's disclosures indicated it has no recent investment-banking relationship with FuelCell or Itron.

Other alternative-energy companies that saw gains Friday included Hydrogenics Corp., up 7 percent; C&D Technologies Inc., up 9 percent; and Energy Conversion Devices Inc. (ENER), up 2.8 percent. Thomas & Betts Corp., which makes components for electric markets and steel structures used for utility transmission towers, was up 5 percent.

Other power-related shares also gained Friday.

Intermagnetics General Corp., which is developing technology to improve the reliability of electric power transmission and distribution, rose $3.47, or 17 percent, to close at $23.91.

American Superconductor Corp. (AMSC), which makes products designed to improve the reliability of electric power systems, soared $3.95, or 43 percent, to $13.20.

Shaw Group Inc., which offers services for power markets, rose 98 cents, or 13 percent, to $8.26.

General Cable Corp. (BGC), which makes cable products for energy markets, ended up $1.15, or 16 percent, at $8.15.

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