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Tesla Motors (NASD:TSLA)
made a splash last week with its proposed $5 billion “Gigafactory”
and its eye-popping numbers: a 10 million square foot facility on an
entire land area of 500-1,000 acres, with output of 35 GWh/year of
The European Union should ensure that future climate and energy policies do not undermine the competitiveness of its industry, already weakened by a price gap with the U.S., the bloc’s member states said.
The idea of a “smart grid” has taken center stage — an evolution of advanced technologies that make the availability of a smarter, more efficient electrical power grid possible. These technologies aim to address the complex challenges facing grid systems today, which stem largely from its aging infrastructure and a use case model that has evolved over the years. With power systems over a century old, the field instrumentation on the grid is quickly reaching its life cycle limit, which adversely affects overall grid reliability and efficiency.
Several countries have announced ambitious goals to be powered completely by renewable energy, while other nations set smaller, incremental goals. These high aspirations have sparked quite a debate amongst industry experts, and we here at Renewable Ene…
Last week, U.S. senators introduced the Energy Savings and Industrial Competitiveness Act with a bipartisan group of co-sponsors. The bill would spur the use of energy efficiency technologies in the residential, commercial and industrial sec…
A plug-in isn’t the only feature that will make you feel like you’re learning to drive all over again. From Cadillac to Mercedes, BMW to Tesla, here’s…
Read more: Green Travel, Luxury Cars, Electric Cars, Cars, Clean Energy, G…
Tom Konrad CFA
After a rough January, the stock market recovered in February, while
clean energy stocks partied like it was 2013. My annual Ten
Energy Stocks model portfolio also had a good month,
rising 6.0%, and is now up 4.7% for the year in dollar terms, and up
% in local currency terms. My broad market benchmark (the
iShares Russell 2000 index) is up 7.5% for the period and 1.5% for
the year. Clean energy stocks soared higher, with the
Powershares WilderHill Clean Energy ETF (NYSE:PBW)
up 16.3% for the period and 15.7% for the year.
(Current prices as of February 3rd, 2014. The “High
Target” and “Low Target” represent the ranges within which I
predicted these stocks would end the year, although I expect a
minority will stray beyond these bands due to unanticipated
Sustainable Infrastructure REIT Hannon Armstrong announced full
year results. While management reaffirmed their 13% to 15%
target for core earnings and dividend growth, the company took a
provision of $0.69 per share on investment in a geothermal loan,
which was a larger write-down than I had anticipated. Some
of this may be recovered in future quarters.
Because of the loss, management presented significant details
about the credit quality of its other assets in the conference
call, 96% of which is investment grade. This seems to have
reassured investors, as the stock has been rising to bring
yield more in-line with other clean energy income
Green Building company PFB scaled back its stock repurchase program
in February, but board member and large shareholder, Edward
Kernaghan has continued his purchases, buying 3,700 shares since the
last update. The company paid its regular C$0.06 dividend in
7.8%. Low Target: C$3. High Target: C$5.
YTD Total C$ Return: 10.3% . YTD Total
US$ Return: 6.6%
Independent power producer Capstone will hold its annual results
call on March 7th.
4.1%. Low Target: C$4. High Target: C$7.
YTD Total C$ Return: 11.5% . YTD Total
US$ Return: 7.8%
Waste heat recovery firm Primary Energy announced the
of its largest facility on Friday. In the two trading
days since, only 920 shares have traded, compared to a three month
average daily trading volume of over 20,000 shares. This
reflects a lack of willing sellers as shareholders await the
company’s annual results, to be released on March 18th.
Current Price: €14.27. 12/26/2013
Price: €13.59. Annual Yield:
3.9%. Low Target: €11.5. High Target:
YTD Total € Return:
5.0% . YTD Total US$ Return:
Bicycle manufacturer and distributor Accell announced annual results on
21st. Sales increased 10%, led by a 23% increase in
e-bike sales. Earnings declined 18% mostly due to
reorganization costs. The company proposed a €0.55 annual
dividend, to be approved at the annual meeting. The lower earnings
and dividend were expected, and the stock has reacted favorably
since the announcement.
6. New Flyer Industries
Current Price: C$11.33. 12/26/2013 Price: C$10.57.
Annual Yield: 5.2%. Low Target: C$8. High
YTD Total C$ Return: 8.1% . YTD Total
US$ Return: 4.5%.
Leading transit bus manufacturer New Flyer will announce annual
results on March 19th. The company paid its normal C$0.04875
Energy performance contracting firm Ameresco will announce its
annual results on March 13th. The Pentagon announced that Ameresco
now eligible to bid on projects included in its $7
Billion green energy program.
I took a look
the preferred stock offering from solar and rail real
estate investment trust Power REIT, and decided to invest.
Global provider of software as a service fleet and mobile asset
management, MiX Telematics, announced its fiscal third quarter
results on February 6th, including slightly-better than anticipated
growth in its closely watched subscription revenues. After the
results were out, I interviewed CEO Stefan Joselowitz and industry
expert Clem Driscoll. I had initially included MiX in this
portfolio because I felt it was the best valued company is a rapidly
growing industry which can significantly reduce fuel uses and
improve driver safety.
After doing the research for that
article, I am even more enthusiastic about the company.
In addition to the stock being a better value than those of its
competitors, I believe MiX is a leader in globalization and its
tools to provide driver feedback, which improve efficiency and
safety. Given the recent stock pullback, I added to my
holdings, and consider the current price an excellent entry point.
10. Alterra Power Corp.
Current Price: C$0.30 12/26/2013 Price: C$0.28.
Annual Yield: N/A. Low Target: C$0.20. High
YTD Total C$ Return: 7.1% . YTD Total
US$ Return: 3.6%.
Renewable energy developer and operator Alterra Power completed
the acquisition of a 202 MW wind development and announced
the results of its 66% owned Icelandic subsidiary, HS
Orka. Revenues and electricity production increased, but
EBITDA and income were down, mostly due to one-off factors. HS
Orka continues to use most of its cash flow to rapidly pay down
debt. This cash flow should be available for other uses from
Geothermal power developer Ram completed the remediation of its
San Jacinto-Tizate project on January 22nd, and expects to
complete a plant capacity test in March. Management expects
the remediation to have increased the plant capacity to
between 58 and 63 MW. We can expect the stock to appreciate
significantly if it is in the upper part of the range. If it
fails to reach 58 MW, look out below!
Finavera Wind Energy
Current Price: C$0.075 12/26/2013 Price: C$0.075.
Annual Yield: N/A. Low Target: C$0.20. High
YTD Total C$ Return: 0% . YTD Total US$
There were no updates from wind project developer Finavera.
Clean energy stocks are starting off the year at a blistering
pace. Although my picks have not kept up, I’m very happy with
the 4.7% return from these relatively conservative and
income-heavy stocks. Of the ten, only MiX is down, and I’m
also happy to see the stock there for now. Its recent US
listing only came to my attention in December, and the current
weakness comes at an opportune time, as I am becoming more
enthusiastic about the company’s long term prospects.
Disclosure: Long HASI, PFB, CSE, ACCEL, NFI, PRI, AMRC, MIXT,
PW, AXY, RPG, FVR.
DISCLAIMER: Past performance is
not a guarantee or a reliable indicator of future results.
This article contains the current opinions of the author and
such opinions are subject to change without notice. This
article has been distributed for informational purposes only.
Forecasts, estimates, and certain information contained herein
should not be considered as investment advice or a
recommendation of any particular security, strategy or
investment product. Information contained herein has been
obtained from sources believed to be reliable, but not