Wednesday, March 19, 2014

Seeking Alpha: Challenging End Markets Weighing On Global Power Equipment

Roughly a year ago, I looked into Global Power Equipment (GLPW) ("Global Power Equipment Is Either A Big Value Or A Trap") and came away thinking that although 2013 would be a challenging year, there was a good risk-reward profile overall. The performance since then has reflected that to some extent, as the shares are up about 15% since then, but have been relatively volatile.

Demand in the nuclear power service market has remained weak, and the company's efforts to build out its products/solutions business are going to take time to bear fruit. Long term, it makes sense to get involved in areas like pipelines, distributed generation, and LNG, but plenty of companies with ties to the natural gas/LNG equipment space (like Chart Industries (GTLS) and Dresser-Rand (DRC)) can attest to the challenging demand environment right now. Sluggish guidance doesn't help near-term prospects, but Global Power's shares still look interesting for patient investors wanting to be long on natural gas, LNG, and power gen infrastructure.

Continue reading here:
Challenging End Markets Weighing On Global Power Equipment

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