Ten Clean Energy Stocks For 2018

Tom Konrad Ph.D., CFA Ten Years of "10 Clean Energy Stocks." A 38% total return in 2017 is the one to beat. I started blogging about investing in clean energy stocks in 2005.  At the time, I had just started an independent investment advisory practice, and thought blogging was a good way to impress people with my knowledge of clean energy.  I don't know how many people I impressed, but the clients were hardly pounding down the door. What I did learn, however, was that I loved writing about clean energy from the perspective of a stock investor.  Because I was...

Ten Clean Energy Stocks For 2017: Finessing Trump

Tom Konrad Ph.D., CFA The History of the "10 Clean Energy Stocks" Model Portfolios 2017 will be the ninth year I publish a list of ten clean energy stocks I expect to do well in the coming year.  This series has evolved from a simple, off-the-cuff list in 2008, to a full blown model portfolio, with predetermined benchmarks and (mostly) monthly updates on performance and significant news for the 10 stocks.  While there is much overlap between the model portfolio and my own holdings (both personal and in the Green Global Equity Income Portfolio (GGEIP),...
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Ten Clean Energy Stocks For 2018: Stormy Winter

Tom Konrad Ph.D., CFA While the broad market has been turbulent for the start of 2018, clean energy stocks have fared worse than most. The Trump administration's anti-environmental efforts had little effect on clean energy stocks in 2017 (it was a banner year for this model portfolio). So far, this year has been quite different. Last year, investors seemed unfazed by the chaos in Washington, but with the single "win" of the Republican tax give-away to corporations, investors now seem to think that Trump may indeed be able to deliver on his polluter-funded agenda. Income-oriented stocks have also been taking a...

Our Blue Chip Alternative Energy Stock List

The market has fallen sharply, and Solar stocks have fallen even more following rumors that Congress will pass the Energy Bill without the Production Tax Credit or Investment Tax Credit.   Given this volatility and Renewable Energy's reputation for profitless startups, now might seem like an excellent time for a risk adverse investor to abandon the sector altogether.   Not so.  Even if all tax credits and other incentives for Renewable Energy were to be removed, the underlying drivers of Alternative Energy remain firmly in place: Rising energy prices and decreasing reserves, the need to reduce our Greenhouse gas emissions to avoid...

Ten Clean Energy Stocks For 2017: Sunny August Skies

by Tom Konrad Ph.D., CFA After a strong performance all year, the stock market stumbled in August, along with clean energy stocks in general, although the sector continues to outperform the broad market.  My Ten Clean Energy Stocks model portfolio again came out on top, buoyed by two winners (Seaspan Preferred (SSW-PRG) and MiX Telematics (MIXT).  Both were catalyzed by strong earnings reports at the start of August, which I summarized last month. For the month of August, the model portfolio was up 0.9%, for a 26.3% total gain for the year to the end of August.  It's clean energy benchmark...

10 Green Energy Gambles for 2009

The credit crunch made me reassess my investing strategy last September.  First, my expectation of the lack of availability of credit for companies without reliable cash flow led me to sell several early stage and troubled companies.   Second, my experience of attempting to re-orient my portfolio in a hurry convinced me that I simply own too many companies.  For the purposes of diversifying company-specific risk, nearly all the benefits can be achieved with as few as 10 companies, if those companies have sufficiently different performance characteristics. In less ideal circumstances, 20-40 companies will usually be sufficient.  I currently own...
10 Clean Energy Stocks

Ten Clean Energy Stocks For 2018: Oddballs Spring Back

After a stormy winter for the broad market and clean energy stocks, including my picks, March and April brought relative calm.  Better yet, my model portfolio has rebounded from its February lows, although its benchmarks (SDY for the broad market of income stocks and YLCO for clean energy income stocks) have mostly been treading water. The gains were led by two of my less conventional clean energy picks, Seaspan (SSW) and InfraREIT (HIFR).  Seaspan owns (mostly very efficient) container-ships, which most people would not associate with clean energy, but which I include because they they are much less energy intensive...

Ten Clean Energy Stocks For 2017: Fall Forward

Tom Konrad Ph.D., CFA Yieldco Buyouts A Canadian Yieldco Invasion sent clean energy stocks running up in October and November.  My Ten Clean Energy Stocks model portfolio benefited from the purchase of 25% of Yieldco Atlantica Yield (NASD:ABY) by Canadian utility and renewable power generation conglomerate Algonquin Power and Utilities (TSX:AQN or OTC AQUNF), which was one of my Ten Clean Energy Stocks for 2009. Rumors had circulated that the Atlantica stake would be purchased by Brookfield (NYSE:BAM) and its Yieldco Brookfield Renewable (NYSE:BEP).  If there were discussions, Brookfield must have decided that it had enough on its plate with the recently...

Performance Update: Sell and Short Recommendations

Investors are getting  bearish these days, which comes as a surprise to me, since I'm used to being in the minority.  I was a bear when I first took the leap from mutual funds and started trading stocks in 1999, and am a bear still.  I wish I'd turned bullish for a couple of years at what I consider to be the large bear market recovery of 2003-2006, but I didn't.  However, since I was (and still am) bullish on commodities since around the same time frame, I can't complain about my returns over the period. This spring, I...

Ten Solid Clean Energy Companies to Buy on the Cheap: Intro, and Honorable Mentions

With the recent market declines, the start of the year may not have been the best time to publish ten speculative stock recommendations.  Considering the S&P fell 6% in the month of January, I find it quite surprising that an equal-weighted portfolio of those picks is up over 6% for the same period (using the prices I quoted in the original articles.)  If the market as a whole continues down, I expect it to drag those speculative picks with it.  Small, profitless companies tend to be hurt more than others in market declines, and to benefit more from booms.  ...

Why I Sold My Utility Stocks

In times like these of financial uncertainty, regulated utilities have traditionally been considered a safe haven.  But that is changing.  The Dow Jones Utilities Average was down 30% in 2008, vs. a 34% drop in the Dow Industrials.  Not much of a safe haven. In a recent interview, utilities analyst Daniel Scotto noted, that the utility industry offers "a lot less security" than it used to.  His reasoning is based mainly on the fact that the regulated portion of utility company's business is smaller than it has been in previous recessions, making them vulnerable to lower growth (or even...
10 Clean Energy Stocks

Ten Clean Energy Stocks For 2018: Second Quarter Earnings

Tom Konrad Ph.D., CFA July and August saw some mild recovery for the stock market after a difficult first half of 2018.  Clean energy income stocks continue to lag the broader market, but my Ten Clean Energy Stocks model portfolio has managed to maintain its lead over its broad market benchmark. Through August 31st, the model portfolio is up 7.5%, compared to its broad dividend income benchmark SDY, which is up 5.3%.  Its clean energy income benchmark YLCO is down 1.2, even after dividend income.  The private portfolio I manage, the Green Global Equity Income Portfolio (GGEIP), is slightly behind the...

See You Later, Hannon Armstrong

by Tom Konrad Ph.D., CFA Sustainable infrastructure financier Hannon Armstrong (NYSE:HASI) is not in my Ten Clean Energy Stocks model portfolio for the first year since its IPO in 2013. I still love the company and its business model, but I have become concerned about its short term prospects. Dividend Disappointment? In my last update on the 2017 portfolio, I wrote, “Sustainable infrastructure and clean energy financier Hannon Armstrong reported earnings on November 1st. The headline numbers were lower than expected, but for a very good reason. The company has spent the last few months locking in low interest rates by refinancing its...
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Ten Clean Energy Stocks For 2018: First Half Update

The first half of 2018 has been difficult for most investors, including clean energy investors and dividend income investors. Through June, my broad dividend income benchmark SDY lost 0.6%, while my clean energy income benchmark YLCO lost 4.7%, including dividend income. My picks were also down for most of the year, finally struggling back into positive territory at the end of May.  They finished the first half up a solid 5.9%.  The real money strategy I manage, the Green Global Equity Income Portfolio (GGEIP), also squeaked in to positive territory by 1.2% at the end of June. Details of then stocks'...

Ten Clean Energy Stocks For 2017: First Quarter Earnings

Tom Konrad Ph.D., CFA In the two months since the last update, most of the stocks in my Ten Clean Energy Stocks model portfolio have reported first quarter earnings.  There were few surprises, and those were mostly pleasant ones, allowing the model portfolio to add to its gains, and pull a little farther ahead of its benchmark.  For the year to the end of May, the model portfolio is up 13.8%, 2% ahead of its benchmark.  The benchmark is an 80/20 blend of the clean energy income...

Ten Clean Energy Stocks For 2017: Summer Harvest

Tom Konrad Ph.D., CFA Colossal Fossil Failure With a president actively hostile towards renewable energy and focused on promoting fossil fuels, it would be easy to think that clean energy stocks would underperform their fossil cousins.  The exact opposite has been true.  Despite the administrations' efforts and tweets bragging about new highs for the Dow, energy funds are down over 10% for the year.  For example, the Energy Select Sector SPDR (XLE), largely composed of oil and gas companies, is down 13% for the year.  The tiny coal sector did better, with the VanEck Vectors Coal ETF up 18%. Even so, Trump's...