Just on the surface level, PowerSecure (POWR)
looks like it should be in some businesses with attractive long-term
prospects. The company's distributed generation operations address the
dual realities that not as many commercial/industrial sites have backup
power as you might imagine and that there are savings to be gained from
using on-site generation for peak shaving/demand response. Elsewhere,
LED lighting and energy efficiency are almost perennial hot topics, and
though utility infrastructure is not necessarily a growth market on its
own, transmission & distribution (T&D) work has been lagging
long-term demand and PowerSecure is building off of a low base.
Clearly
the Street is feeling more cheerful about the name. The shares are up
more than 170% over the past year and roughly 300% from the mid-2012
lows, and a small cadre of well-known institutions own worthwhile chunks
of the stock (though some of that is for ETFs). While I'm actually more
bullish with my numbers than management's own presentation, I'm not
quite as bullish as the sell-side at this point - I do believe these
shares remain undervalued, but a price target in the $20s might be a bit
much right now.
Please read the full article here:
Can PowerSecure's Odd Mix Generate Real Cash Flow?
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