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Vestas turned back to start

Vestas' stock shares heading towards its lowest level since the company's IPO - in 1998. On Tuesday, shares of Vestas fell by 3.2 percent after news of the company's U.S. CEO, Martha Wyrsch, decided to leave the ailing wind turbine manufacturer.

(Google-assisted translation to English.)

Vestas' stock shares heading towards its lowest level since the company's IPO - in 1998.

On Tuesday, shares of Vestas fell by 3.2 percent after news of the company's U.S. CEO, Martha Wyrsch, decided to leave the ailing wind turbine manufacturer.

At last week's financial reporting, there was considerable focus on Vestas' cash flows that the company is now expecting to be negative by as much as 500 million euro this year. Poor cash flow is further draining the company's credit. Many analysts now believe that the company can not avoid having to go to the market to ask for new money through a capital increase.

Even less value

When issuing new shares, it is usual to see a large discount on the price to get investors to contribute additional funds. This would, conversely have a dilutive effect on older shares if the issuance of new shares carry substantial discounts on the price.

Facts

Vestas debuted on the stock exchange on 29 April 1998 after selling 4,765,700 shares at a price of 270, which was the highest price in the offer price range. Adjusted for losses since then corresponds to a price of £ 24.17

Vestas crashed in 1998 in the stock exchange after being oversubscribed eight times. It reached its preliminary peak in 2008 at a price of 692, which was a 28-fold increase compared to the converted subscription price of 14 years ago - but since then, it plummeted by 96 per cent.

Far from growth days

For several years until around 2009, the wind industry was a rapidly growing industry with average annual growth rates in the region of 30 per cent. The large growth lured companies in droves, and with expectations of continued solid growth rates.

However, the global financial crisis and later the debt crisis in Europe has slowed the global expansion of wind power, and it has led to a marked intensified competition in the market, which has left its mark on wind producers accounts - and therefore also on stock prices.


Source: http://epn.dk/brancher/ener...

NOV 13 2012
https://www.windaction.org/posts/35369-vestas-turned-back-to-start
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