10 for 2019 Oct

Ten Clean Energy Stocks For 2019: Pattern Buyout, Analyst Downgrades

by Tom Konrad Ph.D., CFA Although valuations and political uncertainty have me spooked, October was another strong month for the stock market in general and clean energy income stocks in particular. While my broad income stock benchmark SDY added 1.6% for a year to date total gain of 19.6%.  My clean energy income stock benchmark YLCO did even better, 2.7% for October and 29.7% year to date.  The 10 Clean Energy Stocks model portfolio fell somewhere in between for the month (up 1.8%) but remains unchallenged for the year to date (40.7%).   My real-money managed strategy, GGEIP, lagged as I reduce...

Woulda, Coulda, Shoulda

With the market's rapid rebound from March lows and the Nasdaq Composite stock index closing higher than it was at the end of last year, many of us are probably asking ourselves: Did I miss my chance to buy at the lows?  or: Will I ever make up for my losses? These questions point to dangerous emotions for stock market investors.  Fear of missing out often leads to investment mistakes.  This is why investment advisors always tell their clients that they are better off not looking at their portfolios in a downturn. A big loss makes some people want to sell everything, for fear...

10 Clean Energy Stocks For 2018 Preview

Like last year, I will be offering paying readers a preview of my Ten Clean Energy Stocks for 2018 list.  I plan to publish the final article after market close on January 1st.  If you would like to see a draft version mailed on December 29th (a full trading day before the final publication) please PayPal $10 to me at with a note that it's for the 10 for 2018 preview.  The draft will contain the full list, but may not have a complete stock discussion for each stock.  I plan to finish the article over the next couple days. Note...

Ten Clean Energy Stocks For 2017: Taking Profits

By Tom Konrad Ph.D., CFA 2017 is turning into a second banner year in a row for my “Ten Clean Energy Stocks” model portfolio. I expected at best to make high single digit returns after the impressive 20% (while my benchmark fell 4%). Instead, the portfolio produced a 36.8% total return while its benchmark is up 19.5% with only four trading days left in the year. Such returns are obviously cause for celebration, and also for profit taking. I plan to replace at least five of this year's list with new stocks in the 2018 (tenth annual) “Clean Energy Stocks” model...
GPP

Covanta and Green Plains Partners Don’t Let A Crisis Go To Waste

by Tom Konrad, Ph.D., CFA Last week, two of the stocks in my Ten Clean Energy Stocks model portfolio cut their dividends.  Covanta Holding Corp (CVA) dropped its quarterly payout from $0.25 to $0.08 (a 68% cut) while Green Plains Partners (GPP) slashed its quarterly distribution from $0.475 to $0.12, a drop of 74.75%. Before reducing their dividends, both companies had payout ratios near 100%, meaning that substantially all of their free cash flow was going to pay dividends.  In general, companies are very reluctant to cut their dividends because it is a signal that their management thinks they cannot grow...
10 for 19 Q1 total returns

Too Good To Last? Ten Clean Energy Stocks For 2019

The first quarter of 2019 saw the market's largest quarterly gain in a decade, and my 10 clean energy stocks model portfolio outperformed both the broad market and the clean energy income ETF I use as a benchmark (see chart above.) Performance that strong makes me nervous, especially since the last time we saw gains like these it was the stock market rebound from the financial crisis.  In this case, while the market was down in the last quarter of 2018, it had only been enough of a decline to blow a little of the foam off the top of...

10 Clean Energy Stocks for 2020: June Update

by Tom Konrad, Ph.D., CFA The coronavirus pandemic no longer has the United States by its financial center throat, the New York City area, but is instead is now gnawing ravenously at its arms and legs.  In June, the stock market seems to be just starting to get a clue that this is also a bad thing, leading to a month of volatility and general consolidation. Europe, in a display of relative competence, has been much more effective than the US at getting the pandemic beast under control, and so investors looking for safe havens might do well to look there. ...
NFI Covid impact

10 Clean Energy Stocks For 2020 May Update: Red Eléctrica, Ebay, NFI Group

by Tom Konrad, Ph.D., CFA Market Outlook The continuing market rebound in the face of a worsening epidemic in the US (outside of the initially hardest hit states) widespread protests against lack of police accountability, and a President who thinks the right response to mostly peaceful protests is to call in the military continues to befuddle me. The risks in today's stock market outweigh the possibility of future potential gains.  Although I was buying aggressively in March, I've shifted back to a more cautious stance, and am mostly starting to sell covered calls on my positions with the greatest gains.  I generally...
July 2019 chart 10CES

Ten Clean Energy Stocks For 2019: Marginally Hotter

by Tom Konrad Ph.D., CFA July 2019 was “marginally” the warmest month on record. Meanwhile, the stock market was also inching to new highs, and the real, sweltering evidence of climate change continues to let clean energy income stocks turn in a blistering performance. While my broad income stock benchmark SDY was up 16.0% through the end of July (0.9% for the month), my clean energy income stock benchmark YLCO is up 23.4% through July (0.4% for the month,)  My 10 Clean Energy Stocks model portfolio is up 28.3% (1.3%) and my real-money managed strategy, GGEIP, is up 26.4% (1.2%) for...
10 Clean Energy Stocks for 2018, through Nov 30

Ten Clean Energy Stocks For 2018: Quick November Update

by Tom Konrad Ph.D., CFA At the start of November, I abandoned my short-term bearish stance on the market, writing "I’m not confident that the correction is over, but we seem to be heading into a temporary lull, and so I’m going to abandon cash as my top pick for November."  This turned out to be a good call, with my Ten Clean Energy Stocks model portfolio up 4.3% for the month, slightly behind its broad dividend income benchmark, SDY, which was up 4.9%.    Its clean energy income benchmark YLCO gained 1.6%, as did the private portfolio I manage, the...

10 for 2020 Preview

by Tom Konrad, Ph.D., CFA Over the last couple years, I've given paying subscribers a chance to see my annual list one trading day early.  I did not get it organized this year, but I just got an email from a past participant who was interested.  I initially said no, I'd rather be fair to all readers but then I thought maybe there are others who can benefit. I currently have a list of 11 stocks, which I will be narrowing down to 10 after the close on Dec 31st.  Anyone who forwards me (tom@thiswebsite.com) an email confirming a donation in...
may detail

10 Clean Energy Stocks for 2020: May Update Part 1

by Tom Konrad, Ph.D., CFA For the last few monthly updates, I've been focusing on the big picture, and have neglected to say anything about many of the 10 Clean Energy Stocks for 2020  since I looked at how the pandemic would likely affect each stock in March. This month, I'm trying to rectify the oversight, and have been posting updates on individual stocks for my Patreon supporters since Friday.  Below is a collection of the updates I've published so far.  I am to keep posting one a day until I've gotten to all of them, after which I plan to...

High Income Green Investing For Small Investors

Tom Konrad Ph.D., CFA Until recently, green income investing was an oxymoron. Most companies people think of as green (think Tesla Motors (TSLA) or First Solar (FSLR)) are relatively new companies that are investing all of their profits (such as they are) back into the business.  Meanwhile traditional income sectors like utilities, oil and gas, and coal mining are deeply tied into fossil fuels.  Real Estate Income Trusts (REITs) are the sole exception.  A REIT is as green as the property it owns, and a few such companies are real leaders in sustainable buildings......
10 Clean energy stock model portfolio performance

Ten Clean Energy Stocks For 2018: September Quick Update

As you can see from the chart, September was a tough month for my model portfolio of Ten Clean Energy Stocks for 2018.  Seaspan (SSW) fell back on trade war fears and Green Plains Partners (GPP) fell on ethanol market weakness caused by retaliatory ethanol tariffs and the Trump EPA's continued undermining of the Renewable Fuel Standard.  I'm less sure why Covanta (CVA) is down, but Clearway Energy's (CWEN and CWEN-A formerly NRG Yield) small decline is due to a recent secondary offering. Two of these (CVA and GPP) were my top picks last month, while the third was Terraform Power (TERP). ...

Ten Clean Energy Stocks for 2010

Tom Konrad, CFA A mini-portfolio of stocks that not only are green, but should outperform the market in an environment of increasing concern about climate change and peak oil. This is the third annual list of green stocks I have published.  In 2008, it was a list of ten speculative alternative energy companies (in three parts) that I thought might catch public notice that year.  As we all now know, 2008 was a horrible year for speculative stocks, and my stocks were no exception, losing an average of 55% that year, although that still ended up being better than...

A Blue-Chip Alternative Energy Portfolio

Update: an expanded version of this portfolio appears here. Alternative Energy: Risky but Alluring For many of my older or more cautious clients, investment in small, profitless (or nearly so) startup alternative energy companies is inappropriate.  Even a diversified ETF such as the Powershares Wilderhill Clean Energy portfolio (AMEX: PBW) is too volatile due to its heavy exposure to profitless renewable energy companies such as Evergreen Solar (ESLR) (NasdaqGM: ESLR).   Because of this, in the last year PBW has been over $24, but as low as $16.24.  While such volatility can lead to supercharged profits when you are...