Shares in wind turbine gearbox maker Hansen Transmissions have performed poorly since we recommended buying them, as investors have become unsettled by signs that the pick-up in demand for wind power has been muted and growing speculation on the impact of gearless wind turbines on the industry.
Rival Siemens recently stated its intention to grab market share with gearless turbines, which focused minds on Hansen's position. But, realistically, it will take some time for gearless turbines to build significant market share and Hansen is still working with several partners in the fast-growing Chinese and Indian markets on new geared turbines. Of more concern is the slow pick-up in demand and Hansen has guided expectations downwards ahead of a trading update on Monday, which is expected to be relatively subdued.
When: 27/05/10
Price: 88p
Performance to date: -23%
