Seeking Alpha: Gamesa Continues To Run On Its Second Wind

Spanish wind turbine manufacturer Gamesa (OTCPK:GCTAY) (GAM.MC) has continued to face quite a bit of skepticism from analysts regarding its turnaround prospects, but the company continues to execute on its turnaround plan. That plan has led to high single-digit order growth for 2013 and a return to double-digit growth in the fourth quarter, and the stock has continued to recover with the shares up about 250% over the past year and another 60% since my write-up in September ("The Street Still Doubts Gamesa Has A Business For The Long Term").

There is always a risk with turnaround stocks that investors will push their luck and hold on too long. To that end, Gamesa is not out of the woods. The company is still looking up at the global market shares held by Vestas (OTCPK:VWDRY), General Electric (GE), and Siemens (SI), and moving into the offshore market (where Siemens and Vestas hold more than 80% share) with Areva (OTCPK:ARVCY) could prove tantamount to a bunny jumping in a wood chipper. Should Gamesa manage mid-single digit revenue growth and additional margin improvements, these shares could have another 10% or so left in them before settling in to market-par return.

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Gamesa Continues To Run On Its Second Wind