Itron (ITRI/OW) - JPMorgan

The Smart Grid – Unlocked - Itron (ITRI/OW) received a smart water metering contract from the Cleveland Division of Water. ITRI will deploy 425k of its ChoiceConnect 100W water modules, network infrastructure and accompanying software, over a three-year period. The contract is ITRI’s largest water meter automation project in N.America. Landis+Gyr (private) will deploy its Gridstream AMI solution to CoServ Electric’s 150k electric customers. CoServ is an electric coop located in Corinth, TX. Deployment will begin in March 2011 with a targeted completion of 2013. EnerNOC (ENOC/OW) announced that the Turman Group will implement ENOC’s CarbonSMART solution. Turman Group, a wood product manufacturer, will implement the solution throughout its ten-location network. GE (GE/rated OW by JPM multi-industry and electrical equipment analyst Stephen Tusa) introduced the residential GE WattStation electric vehicle charger. The WattStation charges electric vehicles in 4-8 hours and is equipped with technology that allows utilities to manage the impact of EVs on local and regional grids. Coster https://mm.jpmorgan.com/PubServlet?action=open&doc=GPS-482257-0.pdf

Stock meeting 8/5/2010

Stock meeting 8/5/2010

Telnor on the watch list (if we can get data from Baseline)

ITRI:
-DS looking into it, very expensive presently. Concerns that competition is catching up and the premium could be uncalled for. ENOC is a competitor, as is Silver Spring.

Inflation/deflation: how to position portfolios.
-Sean sent a GE bond, inflation linked. Priced at par. In a year, resets to 3 month libor plus 75 bp. 1% floor, resets each quarter.

China:
-Tough ahead. More internal competition with Chinese manufacturers.
-Next year some pundits see it as slowing
-Hard to know what will happen since the gov't can control so much
-Chinese more likely to buy RE than equities

ITRI Jefferies Report

Jefferies: We continue to view ITRI as a core holding in the smart metering (AMI) space, with the largest number of integrated AMI meters under contract.  With leading share of the North AMerican metering market, ITRI remains a proven vendor and 800 lb gorilla in an increasingly competitive environment.  Recent competitor announcement does not affect ITRI's near term fundamentals or LT market positioning and we remain buyers, particularly on current share weakness.  We would reassess this opportunity should pronounced share loss become evident.  ITRI repotts Wednesday, July 28.  We are ahead of consensus for 2Q10.