Early in 2010 there is more proof that there is wealth to be acquired, and good work to be done behind what used to be called the “Bamboo Curtain.” The vast, mostly untapped country known as China still offers great opportunities for intrepid firms with an eye toward innovation and productivity. One such firm is Phoenix-based Celestial Delights USA Corp. (OTCBB: CLDS, Stock Forum), which on January 6 announced it had signed a letter of intent with Chinese company Han Wind Energy Corporation to promote and develop wind energy parks in the Huitengliang area of Inner Mongolia.
The news of the letter of intent with the Chinese obviously created enough of a buzz to put some wind behind the sales of the company’s stock, creating a new 52-week high for CLDS at $1.39 on the day of the news, surpassing the previous peak of $1.35 set on November 23, and more than double its 52-week low of 64 cents, set the week before.
The market approved the news, and the stock bears watching. The initial project consists of a development property encompassing 188 square kilometers with a recorded average annual wind speed in excess of eight meters per second (or about 28.8 kilometers an hour). The property is 62 kilometers from a large and growing urban centre which includes a mix of both residential and industrial consumers.
Plans for the project include a phase one stage to install up to 48 megawatts (MW) of wind turbines. Phase two plans are projected to increase the installation to 300 MW or higher based on future demand considerations. Chinese companies have grabbed the lead in expanding infrastructure and deployment of wind power solutions, and as a result, industry participants and government officials alike are working closely with wind farm proponents to expedite installations in specific regions throughout the country.
The move toward wind power is a decided shift for CLDS, which began life only two years ago and whose primary business had been the marketing and distribution of a line of gourmet flavored oils, vinegars, mustards, rubs, antipastos, and sugars for sale to specialty retail stores and gift basket markets through the Internet. Its marketing reach extends throughout not only America but into the Canadian provinces of Ontario and Quebec as well.
Obviously, this new venture is one that will be watched closely by small-cap stock investors interested in seeing if the wind carries the stock to new heights of prosperity.
Disclosure: The author has not been compensated nor does he own a position in the above mentioned Company.