Can Obama Boost Wind Stocks?

January 16, 2009 RSS Feed Print
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In his proposed stimulus package, Barack Obama is including some love for the wind sector.

Jefferies backs its "buy" ratings on European wind giants Gamesa and Vestas thanks to the inclusion of a multi-year extension of the production tax credits, plus some means of making such credits "refundable." It's not clear exactly how the plan would work, but the end result of a "refundable" credit scheme could be more expansion for the wind industry as the cost of reselling tax credits to investors would improve.

The wind sector has been hit hard by the credit crunch, with shares of ETFs like the First Trust Global Wind Energy (FAN) and PowerShares Global Wind Energy (PWND) falling by more than half in the last year. The credit change won't solve lending worries for the sector, but along with the possibility of increased investment (possibly some $10 billion to $20 billion from the proposed National Clean Energy Lending Authority, Jefferies says) the sector could be in for at least a bit of a thaw.

Jefferies says: "Clearly it is very early stages and final improvements/alterations to the wind incentive program in the US must still get through Congress and the Senate. However, we are increasingly optimistic as the incoming Obama administration seems to be re-affirming its campaign commitment to renewable energy."

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January 11, 2009

TO: President-Elect Barack Obama

FROM: Ruben Botello, Founder

AMERICAN HOMELESS SOCIETY

Dear Mr. Obama:

I have been in and out of homelessness since being honorably discharged as a USMC Vietnam veteran in 1969. I wound up homeless then, in and out of homelessness with my two sons in the Eighties, and homeless on my own again in the Nineties.

I started the American Homeless Society in 1987 while my sons and I were homeless in California. I have been in several hunger strikes, marches and demonstrations for homeless rights since then but have seen little progress.

My longest hunger strike was 58 days against President Reagan’s “trickle down” economic policies that created much more instead of less homelessness in our country. You now speak about fixing our nation’s economy from the “bottom up” and that should mean you are starting by ending involuntary homelessness at the bottom.

HUD Secretary Philip Mangano has been promoting 10-year plans to end homelessness in major cities across the country on behalf of the Bush Administration for the past few years. We would hope and pray you make a similar commitment to abolish homelessness but throughout our nation, not just in individual cities because there are far more homeless than these urban plans will ever reach.

Slavery was abolished in America over a century ago; why not abolish homelessness today, Mr. Obama? Homelessness is just as bad as slavery in several ways and much worse in others.

Men, women and children from all the races, colors, cultures, nationalities, ethnicities, religions and creeds in our diverse society find themselves homeless daily. They are forced to endure harassment, discrimination and persecution in our nation today much like the slaves President Lincoln’s armies fought to free in the Nineteenth Century.

America’s homeless are also forced to endure nature’s harshest conditions without warm homes or shelter for protection; without good food and nutrition; without essential hygiene, medicine and healthcare; and without the necessary education, training or experience required to qualify for the dwindling supply of jobs in today’s worsening economy. Many of America’s homeless today are even employed but underemployed and unable to afford existing rentals while thousands of others are altogether unemployable.

How can our great nation permit so many of these poor souls to continue to suffer and die needlessly on our streets? I joined the Marines to fight for my country in the Sixties so that all Americans could have a better life, not just the rich and well-to-do who are receiving all the bailouts today.

The list of barriers and obstacles facing today’s homeless goes on and on, Mr. Obama. Please, if you are serious about fixing our nation’s economy from the bottom-up, begin at the real bottom by making a firm commitment to end involuntary homelessness throughout our country without further ado

Ruben of PA 1:41PM January 16, 2009

The Ticker

Kirk Shinkle is a senior editor at U.S. News. He writes daily about ups and downs in equity markets, sectors and stocks. Formerly, he covered business and economics on both coasts for Investor's Business Daily.

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