My new portfolio position CWSI – China Wind Systems again is a combination of two interesting investment themes. This time it is: China + Wind Energy. It’s all about renewable and clean energy or ‘Green Energy’. China has announced plans to drastically increase wind farms and the amount of energy derived from wind turbines. The new contract with Chengxi Shipyard CWSI recently announced drastically increases the odds CWSI could end up as a ‘picks and shovels‘ supplier to the Wind Energy industry. GE – General Electric one of the biggest and most important companies in the Wind Energy business is the end customer. That piece of news makes CWSI a high potential stock opportunity I want to have exposure to.
Here is the complete CWSI news release:
WUXI, China, July 30 /PRNewswire-Asia-FirstCall/ — China Wind Systems, Inc. (OTC Bulletin Board: CWSI – News; “China Wind Systems” or the “Company”), a leading supplier of forged products and industrial equipment to the wind power and other industries in China, announced today that the Company signed a $14 million contract to supply wind tower flanges to Chengxi Shipyard Co., Ltd. (“Chengxi”)
The agreement with Chengxi indicates that the Company will deliver wind tower flanges from September 2009 to June 2010 in the amount of 800 to 1,200 tons per month, although the timing and price may be subject to adjustment by the Chengxi. General Electric, one of Chengxi’s largest wind customers, will be the end customer for these wind tower flanges. Some of Chengxi’s other major wind customers include Vestas, Mitsubishi, and Mitsui.
“This contract is a significant milestone for China Wind Systems, since we began manufacturing forged products at our new facility earlier this year. We are confident that as production increases at our Wuxi facility, we will attract more significant orders,” commented Mr. Jianhua Wu, Chairman and CEO of China Wind Systems. “We will continue our efforts to position China Wind Systems as a leading components supplier to the wind power industry.”
About China Wind Systems, Inc.
China Wind Systems supplies forged rolled rings to the wind power and other industries and industrial equipment to the textile and energy industries in China. With its newly finished state-of-the-art production facility, the Company is expected soon to significantly increase its shipment of high-precision rolled rings and other essential components primarily to the wind power and other industries. For more information on the Company, visit http://www.chinawindsystems.com . Information on the Company’s Web site or any other Web site does not constitute a portion of this release.
CWSI was already part of my Wind Energy Sector Overview Chart. Here’s the always up to date CWSI chart I added to my public list today. Overall the chart looks very bullish. This looks like a long-term base the stock is in the process of breaking out of. The stock is building a bullish flag and ultimately a target in the 3.00 – 3.50 USD$ range looks possible.
Have a great evening!