Trade: Broadwind Energy (BWEN)

Today I bought a small lot (25 shares) of Broadwind Energy at $12.10.  As indicated in my weekly summaries, Broadwind is announcing their first quarter earnings results tomorrow morning.  This is a US-based industrial company with ties to the boom in Oil and Gas as well as their strong presence in building US wind turbines.  I believe the quarter will have positive results and a positive outlook for the rest of the year, pushing the idea of the company fully turning around and becoming profitable.  However, I do sense risk with this stock and it's why I've taken a very small position.  Today the market was up, but the stock was down.  It's been range-bound between $11 and $14 the last few weeks and ran up huge () in 2013.  This helps put the stock into the category of a high multiple growth stock and if anything goes wrong, this can be slaughtered like so many of the biotech and sofware as a service stocks over the past 2 months.  There are also potential roadblock in the form of government subsidies as the energy bill gets looked at in the US this year.  For now, my play is on the next 3-6 months with some confidence that the company is better prepared for impacts from the US government this time around.  After I get the quarterly results, I'll determine if I was right and what I might do next.

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