SOURCE: Paragon Financial Limited

Paragon Financial Limited

November 21, 2011 08:16 ET

Renewable Energy Uncertainty Weighs on Shares of American Superconductor and A123 Systems

The Paragon Report Provides Equity Research on American Superconductor & A123 Systems

NEW YORK, NY--(Marketwire - Nov 21, 2011) - The latter half of 2011 has been a dream come true for Big Oil and a nightmare for North American alternative energy investors. Several high profile government-back alternative energy firms have gone belly up this year, leading to a lack of confidence in the industry. The Paragon Report examines investing opportunities in the Alternative Energy Market and provides equity research on American Superconductor Corporation (NASDAQ: AMSC) and A123 Systems, Inc. (NASDAQ: AONE). Access to the full company reports can be found at:

Beacon Power, which makes energy storage devices used to help the power grid become more efficient, filed for bankruptcy protection last month, according to a recent filing with the Securities and Exchange Commission. The company received a $43 million loan guarantee from the Department of Energy last August.

Naturally, the government's support of clean energy companies has come under fire. Florida Republican Rep. Cliff Stearns argues, in a statement, that "this latest failure is a sharp reminder that DOE has fallen well short of delivering the stimulus jobs that were promised."

Peter Dickson, technical director at BNP Paribas Clean Energy Partners, which invests in renewable energy power projects in Europe, takes a different stance. "Government policy is exactly what makes alternative energy a more certain investment," Dickson said. State subsidies, including preferential rates paid for clean power known as feed-in tariffs, are backed by laws that give projects predictable, stable cash flows for up to 20 years, he said.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the Alternative Energy Market register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

Lithium-ion battery maker A123 Systems has been weighed down by higher costs. A123 posted a third quarter loss of $63.7 million, or 51 cents per share, compared with a loss of $43.7 million, or 42 cents per share, for the same quarter last year. The company has "taken actions to address the near-term challenges associated with this reduction in volume," A123 CEO David Vieau said in a statement.

Power systems maker American Superconductor swung to a loss in its fiscal third quarter, but forecast a better second-half performance citing an uptick in wind and grid bookings. AMSC, hurt by the loss of its largest customer Sinovel Wind Group, is betting on a more diversified customer base focused on wind and grid markets.

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