Energy Efficiency

I don't write frequently about solar stocks, especially photovoltaic (PV) manufacturers.  While the industry is almost certain to be a spectacular growth story, it's also a story that everyone already seems to know about.  Trader Mark put it well: "these stocks are too driven by retail hands."  The PV story clicks with people, and when that happens, they often buy stocks with little regard to what they are worth.  PV stocks are so psychological, we'd all do well to lie down on a couch before buying. As the IRS is unlikely to allow psychotherapy as an "investing expense," I...

Tom Konrad, CFA PFB Corporation is a manufacturer of energy efficient building materials, including SIPD and ICFs, based on expanded polystyrene.  The company's sales have fallen in response to the housing downturn, but less so than most of the housing industry, despite a strong balance sheet and cash flow.  I consider the stock a buy below C$6. NOTE: I'm taking a break in order to take a trip to California for some vacation and to moderate a panel at the San Francisco Moneyshow.  This article was written in January 2010, but I delayed publication for seven months because...

John Petersen During the fourteen years that I've lived in Switzerland, the Germans have been the world's staunchest supporters of green power and alternative energy. Their aggressive development of wind power was breathtaking, as was their warm embrace of photovoltaic power. Over the last few weeks, however, there has been an ominous change in the mainstream German media's tone as the political class finally comes to grips with the unpleasant reality that rooftop solar panels are worthless on short, grey winter days and "For weeks now, the 1.1 million solar power systems in Germany have generated almost no...

Charles Morand On Monday morning, I received an e-copy of a new research note by BofA Merrill Lynch arguing that disclosure by publicly-listed companies on the issue of climate change was becoming increasingly "important". The note claimed: "e believe smart investors and companies will recognize the edge they can gain by understanding low carbon trends." I couldn't agree more with that statement. It was no coincidence that on that same day the Carbon Disclosure Project (CDP), a non-profit UK-based organization that surveys public companies each year on the state of their climate change awareness, was...

The DOE's Office of Energy Efficiency and Renewable Energy (EERE) has launched a new Web site that lists opportunities for financial assistance. In fiscal year 2004 alone, EERE awarded approximately $506 million in financial assistance. So if your thinking of getting into the Alternative Energy business, or have an idea that only needs some financial backing, you may want to take a look at the EERE Financial Opportunities Web site and here is a listing of the current related solicitations.

Lighting Science Group Corp. (LSGP.OB) has been on my watchlist for several months. They design and market energy efficient lighting solutions with long lasting LED bulbs that can be quickly deployed in existing lighting applications and produce immediate cost savings and environmental benefits. Some key events that have attracted me to this company: They recently moved to the OTC BB off the pink sheets.They recently received a private placement of almost $7 millionAfter a several year absence they are finally a fully reporting companyThey are currently far from being profitable, but the trend on the balance sheet is...

Tom Konrad, CFA Apple takes on Google in Silicon Valley rivalry to save the world... first.   Recently appointed Apple (NASD:AAPL) senior VP of Energy Lester Coulson is unimpressed by Google's (GOOG) efforts to solve climate change.  "Google has been trying to make renewable energy cheaper than coal for more than three years now, and we haven't even seen a Beta version!" Coulson admonishes.  "Sure, they've made a few headlines by investing in EGS and planning to string wires up and down the Atlantic coast, but after investing $100 million, is renewable energy cheaper than...

Chris Williams According to the Solar Energy Industry Association (SEIA), in 2010 solar was the fastest growing industry in the US, growing at 67%. The geothermal heat pump (GHP) industry still grew quickly compared to the whole economy, but it only grew at a modest 32% compared to solar. According to Solar Buzz, at the end of 2009, the global solar market was $38.5 billion with the US installing nearly 8% solar, or $3.1 billion of the world market. Source: Solarbuzz 2010 Marketbuzz According to PMGO, an industry research firm, “The total market for U.S. GHPs in 2009 is estimated to be about $3.7...

As I mentioned in a previous post (and also a purchase of LSGP.ob), I have become very interested in the potential investment opportunities in companies that are involved in the conversion of typical halogen and incandescent lighting over to solid state lighting (i.e. LED.) With that said, I wanted to pull back the curtain to show you my process and thinking when I enter a new investment space. The potential returns for the companies in this space can be quite large over the next 10 years. Many municipalities and large corporations are looking at the potential...

Tom Konrad CFA Lime Energy (NASD:LIME) has been a star in the very competitive energy services space recently because of its ability to maintain margins in what has been a very competitive environment.  While competing small efficiency companies have been closing up shop in the Northeast, Lime has been growing revenues at 30% a year, while maintaining a gross margin of around 20%. Recently, Lime sold off due to an earnings miss arising from a big write-off and less than expected revenues in the company’s Commercial and Industrial (C&I) division.  This was the buying opportunity I was waiting for...

by Debra Fiakas CFA On Monday Orion Energy Systems (OESX:  NYSE) issued a press release to reiterate previous guidance for sales in the quarter ending March 2015.  Given that the quarter has already ended, it is more like a pre-announcement of results than guidance.  At any rate management has indicated the results, when finally reported will bring sales for the fiscal year ending March 2015, to some point in a range of $72 million to $74 million. The announcement might not be so much motivated by a need to assure shareholders of financial performance, as much as...

by Debra Fiakas CFA You put the lime in the coconut and call the doctor woke him up, I said Doctor! Is there nothing I can take, I said Doctor! To relieve this bellyache… -Baha Men It is best to avoid corporate drama that involves unexpected resignations and unscheduled week-end board meetings.  At least that is my view.  However, the company soap operas can be entertaining, so I decided to tune into the Lime Energy, Inc. (LIME:  Nasdaq) saga .  Based in North Carolina, Lime provides a menu of energy-saving solutions to utilities and large-facility owners.  Lime's product...

This article is a continuation of my Ten Alternative Energy Speculations for 2008, with picks #8, 9, and10 published last Thursday.  If you haven't already, please read the introduction of that article before buying any of the stock picks that follow.  These companies are likely to be highly volatile, and large positions are not appropriate for many investors.   My least risky picks (#8,9, and #10) are part of that same article; my most speculative plays (#1-3) will are here. #7 Electro Energy, Inc. (NasdaqCM:EEEI) $0.68 Electro Energy has risen 36% in the month and a half since I last...

The Solar Investment Tax Credit has been extended, and the market for mortgage debt "rescued," but neither renewable energy nor the rest of the economy are out of the woods.  We'll probably be feeling the effects of the financial imbalances which have built up in our economy for years to come. While the extension of the tax credit will help renewable energy technologies raise funding, the headwinds from the continued fallout of the structured finance and real estate bubble will be blowing in the other direction.  This will be a problem both for developers of new technologies, and...

Tom Konrad CFA The climate of uncertainty caused by deadlock in Washington is leading to penny-wise, pound foolish behavior at all levels of government, and Ameresco, Inc. (NYSE:AMRC) felt the pain severely in the third quarter. Framingham, MA based Ameresco helps institutions, mostly government entities, improve their energy infrastructure and reduce energy use without capital outlays or increases in energy budgets.  It does this by using the cost savings from energy efficiency to finance the capital outlays, allowing schools, hospitals, and the like to insulate or install solar panels while sticking to existing budgets, and often producing some savings.  To take three examples...

Bill Paul Nobody knows the alternative energy landscape better than Clint Wheelock, whose firm, Pike Research, generates in-depth research on everything from smart meters to carbon capture and sequestration. Now here’s a forecast deserving of far wider attention than it has so far received: by 2020 total revenue generated by energy services companies (ESCOs) could hit $37.7 billion, up a monstrous 573% over 2009’s $5.6 billion. At a minimum, Wheelock expects ESCOs’ revenue to hit $19.9 billion by 2020, a 255% increase. In an exclusive interview last week, Wheelock explained that as much as demand...