Tag: 10CleanEnergyStocks

Our annual model portfolio.

10 Clean Energy Stocks Mar 21

Clean Energy Stock Deflation and Biden’s Infrastructure Plan

By Tom Konrad, Ph.D., CFA Last month saw buying opportunities in some clean energy stocks as the bubble created from the euphoria over Biden’s election vanished as if it never happened. Clean energy stocks have simply returned to the general upward trendline from the second and third quarter of 2020.  Rather than bursting in a market panic, this seems to have been more of a general deflation. Some clean energy stocks seem reasonably priced, but there are no great values like we often see during the market panics which typically follow bubbles.  Without a panic, I’m not ready to buy aggressively.  Stocks...

10 Clean Energy Stocks: Returns Through February/ Poll

by Tom Konrad Ph.D., CFA I'm experimenting with how to display the returns of the 10 Clean Energy Stocks model portfolio.  My Patreon supporters seem fairly evenly split between the two options show below, so I'm opening the poll up to my broader readership. You can see the two most popular options below (with real return data through the end of February) and take the poll here. Comments are welcome as well. DISCLOSURE: Long all stocks in the model portfolio.
Covant 4Q 20 earnings

Covanta and Hannon Armstrong Earnings

by Tom Konrad, Ph.D. CFA Two more earnings notes I shared with my Patreon followers on February 18th. Covanta Holdings (CVA) Leading waste-to-energy firm Covanta Holdings (CVA) announced 2020 earnings today.  There will be a conference call tomorrow morning, but here is my high-level impression: The company managed well through Covid and ended the year within it's original pre-covid guidance.  Metals and energy prices, as well as increased maintenance capital expenditures were a drag on results, but  prices are improving and capital expenditures will fall in 2021. The company is conducting a strategic review which will likely result in the sale of some underperforming...

Eneti and Brookfield Renewable Earnings

By Tom Konrad, Ph.D. CFA Here are a couple earnings notes I shared last week with my Patreon followers. Eneti, Inc. (NETI) - formerly Scorpio Bulkers (SALT) Eneti completed its name and ticker change on February 8th. New ticker is NETI (formerly Scorpio Bulkers (SALT), which I recently wrote about here. Highlights from February 2nd earnings report: 37 of the 47 vessels owned at the 3rd quarter have been sold or have completed sale agreements. Net asset value is $23.94/share. Since most assets are cash or vessels held for sale, this number is basically accurate. The stock is still a good buy...
6 month BDI/SALT chart

SALT: Buying the Balitc Dry Dips

by Tom Konrad, Ph.D. CFA The Baltic Dry Index (BDI) is a shipping and trade index created by the London-based Baltic Exchange. It measures changes in the cost of transporting various raw materials, such as coal and steel. Since the BDI is a measure of the income which firms that own dry bulk cargo ships can earn, changes in the BDI tend to drive changes in the stock prices of such companies. Stock Price Correlation Until recently, one such company was Scorpio Bulkers (SALT), one of my Ten Clean Energy Stocks for 2021 picks. The chart below shows the last 5 years, with...
10 Clean Energy Stocks for 2021 January

January Performance: 10 Clean Energy Stocks for 2021

You can find the original list here.  I'll be doing commentary on individual stocks as there is news.  The first of these is on MiX Telematics (MIXT) earnings, first published for my Patreon subscribers on January 28th and copied below.  A note on Scorpio Bulkers (SALT) from February first will be published here tomorrow. MiX Earnings MiX Telematics (MIXT) reported earnings this morning .  The numbers showed improvement over the previous quarter, but a decline over the previous year due to the covid crisis which was exacerbated by the strengthening dollar. The results were pretty much what I expected when I added...
Model portfolio v benchmarks

Year in Review: 10 Clean Energy Stocks for 2020

by Tom Konrad, Ph.D., CFA Looking Back At the end of 2019, I was worried about overvaluation.   I wrote that my main goal for the 10 Clean Energy Stocks for 2020 list was “to find stocks which will be resilient in the event of a US bear market.”  We certainly had a bear market in 2020, although it was nothing like the kind of bear market I had been anticipating.  The bear market was precipitated by the coronavirus pandemic, rather than overvaluation. While I can claim to have anticipated the 2020 bear market, if not its nature, I was surprised by two other...
ADR

Buying Foreign Stocks: To ADR or Not To ADR

by Tom Konrad, Ph.D., CFA Since my 10 Clean Energy Stocks for 2021 list contains 5 foreign stocks this year, a reader asked about the relative merits of buying a foreign stock compared to a US ADR.  Here is a summary of the relative merits (for US investors) of buying a foreign stock directly compared to buying the American Depository Receipt (ADR). First, let’s look at the tickers for the five foreign stocks in the list.  There are four types of ticker in the list this year: The stock on its home exchange in the local currency.  These have the form...

10 Clean Energy Stocks for 2021: Diversification

by Tom Konrad, Ph.D., CFA Rounding out the discussion of the stocks in my 10 Clean Energy Stocks for 2021 list are the two that don’t fit either of the themes I highlighted for 2021: Picks and Shovels or a Possible Yieldco Boom.  Both help with diversification, both in terms of their industry and geography. MiX Telematics (MIXT) was retained from the Ten Clean Energy Stocks for 2020 list because I expect its prospects to improve rapidly as the world comes out of covid lockdowns.  The global vehicle telematics provider has a large number of its customers among mass transit, logistics,...
Yieldcos stock chart 2H 2020

The Yieldco Virtuous Cycle

by Tom Konrad, Ph.D., CFA Readers who followed my coverage of the Yieldco bubble in 2015 know the Yieldco Virtuous Cycle.   A Yieldco’s stock price rises It issues new shares, and invests the money in renewable energy projects.   Because the stock price is high, it is able to buy more project cash flow by issuing fewer shares than it has in the past. Cash flow available for distribution (CAFD) per share increases, despite the increasing number of shares outstanding. Yieldco management sets a target for continued rapid annual distribution growth, which can be met either by further share issuance (if...
Clean energy stocks 2H 2020

Four Picks and Shovels Stocks

by Tom Konrad, Ph.D., CFA The last three months of 2020 brought an explosion in clean energy stock prices. Solar stocks (as measured by the Invesco Solar ETF (TAN), nearly tripled.  So did the Invesco Wilderhill Clean Energy ETF (PBW), which includes a broader spectrum of companies.  Wind stock rose 61%, and even the relatively sedate Yieldcos were up 32%.  The stars of the last half of 2020 was undoubtedly Tesla (TSLA, up 246%) and other electric vehicle stocks. Money Flows Out of Fossil Fuels and Into Clean Energy I believe that the cause of the current rise in stock prices is largely...
10 for 20 full year

Ten Clean Energy Stocks for 2021: The List

by Tom Konrad, Ph.D., CFA An annual tradition, here is my Ten Clean Energy Stocks for 2021, which is also the new model portfolio for the year, with equal dollar values of each stock using closing prices on 12/29/2020.    Returning Stocks Mix Telematics (MIXT) Green Plains Partners (GPP) Covanta Holding (CVA) Red Electrica (REE.MC, RDEIF, RDEIY) Valeo, SA (FR.PA, VLEEF, VLEEY) Veolia (VIE.PA, VEOEF, VEOEY) New Stocks Scorpio Bulkers, Inc. (SALT) - Dry bulk shipper converting to offshore wind construction.  Thanks to Thad Curtz for bringing my attention to this one. Brookfield Renewable Energy Partners (BEP) - A leading clean energy Yieldco...
10 CES annual returns

Early Thoughts On 10 Clean Energy Stocks for 2021

by Tom Konrad, Ph.D., CFA In the past, I've allowed readers to pay for early access to the list of the 10 stocks I will pick for the model portfolio the next year.  This year, early access to the top 10 list will be a perk for all my patrons on Patreon, who get a first peak at drafts of all my articles.  I posted a draft of this article on December 18th. It's going to be hard to pick 10 stocks that I think are good values this year, but it's past time to start thinking about it.  I thought...
perf chart

10 Clean Energy Stocks for 2020: Rose Colored Covid

by Tom Konrad, Ph.D., CFA The stock market took off in November, fueled by very positive covid-19 vaccine news, and possibly also the prospect of a little competence and sanity in the White House.  While both of these are unambiguously positive for the economy, I think investors are seeing the future through rose colored glasses. Rose colored covid-19. What a Biden Victory Means for the Economy A Biden victory is good news in that we will finally have someone in the White House who will work to reduce the infection rate in the pandemic, rather than vacillating between wishful thinking and actively spurring...
10 clean energy stocks vs benchmarks

10 Clean Energy Stocks for 2020: Spooked in October, but Trading Anyway

by Tom Konrad, Ph.D., CFA Two of the cash covered puts in the 10 Clean Energy Stocks for 2020 model portfolio have now expired, and I am left with a difficult decision as to what to replace them with. As I discussed last month, I feel the market is overvalued given the economic impact of the pandemic and little prospect of fiscal stimulus before January.  Yes, the market is not the whole economy, and large tech firms and high income workers and the wealthy are doing great while people on the bottom half of the income ladder are being crushed.  With...
10 for 20 Aug vs benchmarks

10 Clean Energy Stocks for 2020: The Waiting

by Tom Konrad, Ph.D., CFA Despite high valuations, a rampaging pandemic, and the end of the $600 weekly supplemental unemployment payments from the CARES Act, the stock market continued upward in August. Like most ordinary people in this economy, my Ten Clean Energy Stocks model portfolio is still not feeling the recovery the way the big tech companies and the ultra wealthy are, although my real-money Green Global Equity Income Portfolio (GGEIP)  is now hitting new highs for the year.   The difference between the model portfolio’s performance and GGEIP is mostly a result of trading: It had a large cash position at...
Close Bitnami banner
Bitnami