Energy Efficiency

Tom Konrad CFA The most efficient way to heat and cool a building just got more efficient. Geothermal heat pump diagram via Bigstock Climatemaster, a division of LSB Industries (NYSE:LXU), recently announced that their new Trilogy 40 geothermal heat pump (GHP) had been certified by the Air Conditioning, Heating, and Refrigeration Institute (AHRI) to exceed 40 Energy Efficiency Ratio (EER) under ground loop conditions. EER is the ratio of effective cooling (heat removed) to the energy used, at maximal load, and is the standard...

Tom Konrad, CFA With new climate legislation or a renewable portfolio standard unlikely now that Republicans control the US House of Representatives, progress on clean energy is likely to come mostly from action at the state level, and from regulation at agencies such as the EPA, rather than national legislation.  Why Energy Efficiency Standards Make Economic Sense One type of regulation that is fairly uncontroversial is improving energy efficiency standards, that is regulation of the amount of energy an appliance or other device can consume during normal use.  In an efficient market, regulation might bring...

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.

by Scott Schnelle As an energy consultant for home retrofits, I often have customers and acquaintances ask my opinion regarding green technologies and energy efficient products. Undoubtedly, with the recent surge of the green movement and a shift toward becoming more environmentally sustainable, now is a great time to invest in these types of products. One product that has been getting more and more attention lately is spray foam. The product itself has been around for many years, but it has recently risen in popularity for a couple of reasons. Here, I’ll discuss spray foam briefly...

General Electric (GE), Honeywell (HON), IBM, Johnson Controls (JCI), Siemens (SI)

Tom Konrad CFA Rockwool insulation (Photo: Achim Hering) Signs of Green Building Growth Rockwool International (COP:ROCK-B,OTC:RKWBF) recently announced the establishment of the insulation manufacturer’s first US factory, in Mississippi, about 30 miles outside Memphis, Tennessee.  The firm has been seeing double-digit annual sales growth in North America, driven by interest from do-it-yourself chains and insulating commercial buildings, and expects this growth to continue. The company’s rock wool insulation, sustainably made from stone and recycled materials, can provide improved fire protection when compared to traditional insulation products. Rockwool is far...

By Harris Roen Three volatile alternative energy stocks release earnings reports. Two of the stocks jump, one drops. China Recycling Energy Corp (CREG) More Info Latest earnings report for China Recycling Energy Corp shows a huge jump in revenues and net income. Insider selling, however, has led to stock losses. CREG is down 75% from where it was trading just this March. Seeking Alpha Energy Focus, Inc (EFOI) Profits...

Tom Konrad CFA On March 22, the Conservative Canadian federal government released its proposed 2011 budget. The biggest news about the budget is not what is in it, but the fact that it is likely to lead to a no-confidence motion in Parliament, and bring about a new election.  One provision of the conservative budget is the C$400 million ecoEnergy Retrofit program was included in the budget as a sop to lure support from the New Democrat party, but proved insufficient to gain their support. Canadian insulation manufacturers hailed the inclusion of the home insulation...

Stocks may be expensive now, but they won't be forever.  Five energy efficiency plays to buy when they're cheap again in efficient HVAC, desalination, thermal imaging, and lighting. Tom Konrad, Ph.D., CFA This article continues my Clean Energy Stocks Shopping List series.  In the first, I looked at five clean transport stocks I'll be looking to buy when the market falls.  In the second, I took a step back, and outlined why it makes sense to wait for better prices than to buy these companies now.  Here are five stocks I'll be looking to buy  in my all time...

Tom Konrad CFA FLIR Systems' (FLIR) IR cameras save energy not just by spotting leaks, but by spotting intruders in the dark. When I published my list of dividend paying energy efficiency stocks in January, I missed one, and it is a long-time favorite.  FLIR Systems (FLIR) business is focused around thermography, and I picked FLIR as a stock likely to benefit from the stimulus in March 2009 because FLIR's cameras are used by energy raters.   FLIR did benefit from the stimulus, rising 56% by the end of 2009 from the $21 price when I...

David Gold Wind turbines stand tall and mesmerize with their motion. Solar cells bask in the sparkling sun.  Meanwhile, hidden down in the dark dirty underworld, a compelling technology sits quietly and gets no respect.  Once installed it largely goes unseen and, it seems, it’s equally invisible in the world of clean technology press, venture funding and government R&D funding.  Yet this technology provides some of the most intriguing economic returns available for reducing a building’s net energy consumption and I would welcome the right opportunity to fund an exciting business in this category. What is this Rodney Dangerfield...

Tom Konrad CFA It's no secret that the housing market is in the doldrums.  New housing starts in August fell to an annual rate of 571,000, and fewer homes were under construction since record keeping began in 1970.  This has taken a toll on energy efficiency stocks in the housing sector, leading to some very attractive pricing in two of my favorites. Waterfurnace Renewable Energy (WFI.TO / WFIFF.PK) I've long been fan of Waterfurnace, an Indiana-based manufacturer of ground source and water-source heat pumps.  A note from a reader Wednesday prompted me to poll...

by Tom Konrad Last February, I wrote " I expect the Fed-induced reprieve to be fairly short lived, ten solid companies I'd be happy to buy more of if and when the bottom really falls out of the market."  When I wrote those words, the Dow Jones Industrial Average was over 12,700.  Now, it's around 8,500, and I doubt anyone remembers the "Fed-induced reprieve" I was referring to.  The "bottom fell out" in September and October.    On October 12, with the DJIA at 8451, I wrote "I don’t know where the market will go from here, but I...

Tom Konrad CFA In my model portfolios of ten clean energy stocks for 2013 andsix alternatives, three companies are currently delaying earnings announcements for various reasons, and at least two of the three will be restating previous results. Many investors flee the scene at the first whiff of accounting problems: All investors rely on a company’s financial statements (directly or indirectly) to value companies.  If there is  any doubt as to the accuracy of those statements, they believe it’s better to invest elsewhere. In contrast, I believe that we never have anything like an accurate picture of what is going on...

In the future, I plan to avoid doing lists of ten stocks. I've found the writing to be somewhat repetitious, and I suspect some readers feel the same way.  Look for more threes and fives. That said, there are more than enough solid companies with strong clean energy arms.  These companies are my favorite investments right now, both because I think that now is a time to play it very safe in the stock market (I'm also increasing my cash reserve), and because these companies allow me to use Cash Covered Puts. Since I do have several...