GE has the global reach
Putting China into the equation of a green stock portfolio, General Electric Company (NYSE:GE) may also come in as a mainstay. As a diversified technology company, it already has manufacturing and assembly facilities for wind turbines in China, as well as in Spain, Germany, Canada, and the U.S. GE’s wind turbine business is complemented by support services ranging from development assistance to maintenance and operation.
For the fourth quarter of 2012, General Electric Company (NYSE:GE) posted operating earnings of $4.7 billion, or $0.44 per share, both up 13% from the fourth quarter of 2011. Revenues of the company’s industrial segment advanced 11% to $10.8 billion during the quarter, with China contributing a 19% growth.
Chinese joint venture for Siemens
Siemens AG (ADR) (NYSE:SI) is another diversified conglomerate that has a strong stake in renewable energy sources. The company’s energy sector has a wind power unit that contributed a 27% volume-driven revenue growth in the company’s fiscal 2013 first quarter. Siemens’s total revenues for the quarter totaled €18.13 billion, up 2% from €17.85 billion a year earlier, while net income slid 12% to €1.21 billion from €1.38 billion.
Notably, the company has a wind power joint venture in China that completed delivery of an onshore plant in end-2012. Siemens AG (ADR) (NYSE:SI), whose other sectors include industry, healthcare, infrastructure & cities, has also established its first factory in China for the production of wind turbine blades.
A wild card entry
For a pick solely devoted to green power operations, Ormat Technologies, Inc. (NYSE:ORA) also appears a viable pick. This company not only owns and operates geothermal plants and recovered energy-based power facilities in the U.S. It also develops and builds such plants in the U.S. and overseas, as well as manufactures and sells equipment for these facilities. The upside of the geothermal business, however, is limited, with the IEA projecting that even with steady medium-term growth, geothermal plants will account for just 1.4% of total renewable energy generation by 2017.
Go for the long haul
In conclusion, GE and Siemens appear as solid picks for investors who want green power in their portfolios. These companies have well-diversified operations that can cushion the changing fortunes of companies seeking growth opportunities from renewable energy sources. A prudent strategy of buying on weakness and long positioning should be worth a thought, however, as there are sentiments in the market that both GE and Siemens are overvalued at their current prices.
The article Which Companies Wield the Green Power? originally appeared on Fool.com and is written by Arturo Cuevas.
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