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Bargain Priced Alternative Energy Stocks

A review of Crystal Equity Research’s novel alternative energy indices found a number of companies that have delivered exceptional price appreciation over the last year.  Several were reviewed in the recent post “Alternative Returns” on May 8th.  Expectations for growth appeared to be driving the price movement, so the last post “Quest for Growth” featured four companies from the indices for which analysts have posted high growth predictions.  Not unexpectedly some investors have already bid higher the stocks of those promising companies. In this post we go back to the lists to find the companies with both high growth predictions and low price-earnings...
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Rapidly Growing Alternative Energy Companies

The last post highlighted several companies in the alternative energy, conservation and environment technology fields that have delivered exceptional price performance over the last year.  Prospects for growth in sales or earnings appeared to be key drivers of the price movement.  It makes sense to seek indicators of growth as cues for those companies that may become tomorrow’s price movers. Crystal Equity Research’s novel alternative energy indices were a good place to go on a ‘quest for growth.’ Beach Boys Index  -  Biodiesel The two analysts who publish estimates for Renewable Energy Group (REGI:  Nasdaq)apparently expect a surge in growth in the current year followed by a leveling...

Alternative Energy Companies Posting Large Returns

Alternative energy companies delivered compelling returns for investors.  A look at Crystal Equity Research’s ‘indices’ of renewable energy, conservation and environmentally-friendly technology companies found some exceptional price moves.  We review five companies here that have experienced top price moves from 52-week lows. Codexis, Inc. (CDXS:  Nasdaq) has gained 257% from its 52-week low. The company won a place in our Beach Boys group through development of proteins for a mix of applications from biocatalysts for industrial enzymes, chemicals and pharmaceuticals.  While the company has started generating revenue from its technology, it has yet to post a profit.  Codexis delivered a smaller than expected loss in the...
Sunpower /SolarWorld shipment growth 2005-15

SunPower and SolarWorld: Strange Bedfellows

by Paula Mints Oh, what a tangled web you weave when vying for an exclusion from tariffs via strategic ac-quisition. In April, SunPower (SPWR) announced it had acquired (subject to regulatory approval) So-larWorld US, subsidiary of the company that kicked off the solar tariff dispute with a petition in 2012, focused on China as the dumper of cells and modules. SolarWorld GmbH, based in Germany, could not file the petition. It needed its US subsidiary to do so. As SolarWorld US is, currently, the only crystalline cell manufacturer in the US, it takes on a value beyond the sum of...

Future Remains Bright For Solar Despite The Trump Tariff

by Thomas Byrne Despite the Trump Administration’s assertion that it will benefit the solar industry, the decision to impose a tariff on solar panels will have the opposite effect. While attempting to prop up a handful of American manufacturing jobs that may never materialize, many more jobs installing solar systems are at risk as the pace of installations will slow. Some estimate as many as 23,000 jobs could be lost. But the solar industry has proven resilient through bigger threats, and the global demand for clean energy will eclipse this decision. The remedy imposed by the Administration will have a few immediate impacts on...

The History and Future of Solar Shingles

by Kyle Pennell Back in late 2016, Tesla (TSLA) moved to acquire SolarCity, a solar panel manufacturer and installer. Shortly thereafter, the electric automaker revealed why: it had developed a new residential solar product, the solar roof. While it looked like any other home roof, the tiles that composed the roof actually contained solar cells. An individual roof tile won’t produce much energy, but when linked with others in sequence, the tiles can potentially generate power equal to that of regular solar panels. But while Tesla’s solar roof energized the solar industry, it was hardly revolutionary. At the time of Tesla’s unveiling...

Vulnerable Solar Markets and What Makes Them Tick

by Paula Mints All industries and the companies that populate them are vulnerable to macro and micro economic shocks, substitutes, changing tastes and other economic, political and social events. The global solar industry is vulnerable for all-of-the-above reasons and as it is incentive, subsidy and mandate driven while trying to unseat the conventional energy status quo, it is particularly vulnerable. The solar landscape remains low margin and requires government intervention of some type to thrive. It is correct to say that the global solar remains primarily policy driven, but this statement does not go descriptively far enough. Many deny that solar deployment still requires incentives, mandates and/or subsidies...

Buyer’s Guide To Community Solar in New York

by Tom Konrad Ph.D., CFA After a painfully long wait, community solar (also called shared solar) is finally coming to New York state. After years of regulatory uncertainty, the state Public Services Commission (PSC) has put enough of the enabling regulations in place for a number of developers to move forward. What is Community Solar? A community solar installation is a large scale (typically 1 to 3 MW, or the size of about 150 to 800 residential solar installations) in which subscribers can sign up to lease or purchase a share of the production from the solar farm as a credit on...

Solar Trade Case Analysis and Implications

by Paula Mints In terms of the current trade petition and the USITC decision, government interference will not correct an imbalance that is embedded in the industry (globally) particularly when it is put in place by a body that does not understand the nuances of the problem. Despite evidence to the contrary, attorneys and consultants for Suniva/SolarWorld seem to have convinced the USITC that cell manufacturing in the US can be resuscitated and that tariffs and quotas the mechanism that will stimulate manufacturing. In reality, this situation is stimulating uncertainty and doing harm. Table 1: Tariff Recommendations   ...

Tesla’s Buffalo Solar Tiles: As Hot As They Seem?

by Paula Mints In August, Tesla (TSLA) announced that production of its roof tiles at its not-yet-a giga-factory in Buffalo New York would be delayed until late in 2017. Wait ... it is late in 2017. Tesla indicated that production on the tiles was continuing at its 25-MWp pilot scale facility in Fremont, California. The Fremont facility was the former home of the dearly departed Silevo. On August 31 Tesla announced that it was now manufacturing solar cells at its facility in Buffalo and indicated it would have 2-GWp of cell capacity eventually. During Tesla’s earnings call Mr. Musk showed pictures...

The New US Solar Trade Dispute

by Paula Mints In 2012 SolarWorld, facing significant price and margin pressure from cells/modules imported from China, filed trade petitions in Europe and the US under section 337 of the 1930 Trade Act. As a refresher on the Trade Act of 1930; this was the infamous Smoot-Hawley Act which began as a protection for farmers but after much debate fed by many special interests it was eventually attached to a wide variety of imports (~900). Other countries retaliated with their own tariffs. The US trade deficit ballooned. Smoot-Hawley did not push the world into the Great Depression...

Power REIT: No News Is Good News

Tom Konrad Ph.D., CFA I first wrote about Power REIT (NYSE MKT:PW) in 2012, when the tiny real estate investment trust unveiled its plans to become what would have been the first Yieldco by investing in the land underlying solar and wind farms... before the term 'Yieldco' had even been invented.  In the years since, the company made some progress buying land under solar farms.  According to the most recent shareholder presentation, they now own land under seven solar farms totaling 601 acres and 108 MW, in addition to their legacy railroad asset.  These assets produce...

Should I Sell My Mutual Fund To Go Solar?

by Tom Konrad Ph.D., CFA An enthusiastic solar volunteer recently asked me: “What can I invest in to prepare for the next financial crisis?” The situation made the question deeply ironic. The woman asking me was trying to help people invest in solar systems through Solarize, a nonprofit, community-sponsored group buying and discount program. Our town of Marbletown, New York and the neighboring towns of Rochester and Olive have just launched Solarize Rondout Valley, a campaign open to residential and commercial building owners in Ulster County. Solarize campaigns are designed to make it easier and cheaper...

New Energy Exchange Limited Has A Market Cap of $3 Million, But Owns $54...

Esplanade Capital Issues Open Letter to the Board of New Energy Exchange Limited Urges the Company to Reregister with the SEC to Maximize Value for Shareholders Esplanade Capital LLC, a significant shareholder of New Energy Exchange Limited (OTC PINK: EBODF), announced today that it has issued an open letter to the Board urging the Company to reregister with the SEC in order to maximize value for shareholders. The full text of the letter follows: April 25, 2017 New Energy Exchange Limited (f.k.a. Renewable Energy Trade Board Corp.) Board of Directors Shun Tak Centre West Tower...

Can Panasonic Produce High Efficiency Solar Modules at Tesla’s Gigafactory 2 in 2017?

EDITOR'S NOTE: Yesterday, Tesla (NASD:TSLA) announced that it has no intention of using Silevo's technology at "Gigafactory 2," the former Silevo facility in Western New York, now owned by Tesla through its acquisition of SolarCity.  This makes some background on Panasonic (Whose technology Tesla plans to rely on instead) in this month's Solar Flare particularly relevant. Panasonic recently announced that the New York Facility would be operated under the name Panasonic Eco Solutions Solar New York America (PESSNYCA?) and that equipment will be installed and production will begin by summer 2017. In 2014 SolarCity acquired Silevo...

What Happened To Solar In 2016, And What To Expect In 2017

by Shawn Kravetz, Esplanade Capital What happened to solar industry fundamentals in 2016? Global demand shattered records growing ~40% to ~80 GW The U.S. grew ~75% to ~14 GW with solar accounting for 40-50% of new generation capacity in 2016 (vs. close to 0% in 2004 when Esplanade started investing in solar.) China installed 34 GW, a massive but volatile figure with record H1 installations giving way to an air pocket in the third quarter followed by a fourth quarter rebound Solar now competes against natural gas, coal, and other wholesale electricity sources not...