Energy Efficiency

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...

UPDATE: I just looked into the 7 Series vs the Trilogy 40 in more detail here and came to a slightly different conclusion. Tom Konrad CFA Geothermal heat pump diagram via Bigstock Waterfurnace Renewable Energy (TSX:WFI, OTC:WFIFF) launched its new highly efficient 7 Series geothermal heat pumps (GHP) today.  The 7 Series commercial release beats Climatemaster’s (a division of LSB Industries (NYSE:LXU)) Trilogy 40 as the first commercially available GHP with a variable speed compressor.  The Trilogy 40 is currently available as part of a pilot program, and is expected to be commercially available...

With the resignation of four non-independent directors and reduction in the size of LSB’s board, the company has managed to appear to be making a step towards reform while making it harder for the activist fund to gain influence. Gaining influence in a tightly controlled family firm is never easy. It looks like the task just got significantly harder for Engine Capital in its quest to unlock shareholder value at LSB.

Last week shares of Universal Display (OLED:  Nasdaq) closed down 15.8% on the week.  The price move was a surprise, especially for Universal’s ebullient management team.  The company had reported sales and earnings well above expectations for the fourth quarter ending December 2017, as the market embraces the company's proprietary energy-saving display technology.  The consensus had been for $0.85 in earnings per share on $100 million in total sales for the quarter. Management delivered. Sales in the quarter totaled $115.9 million as sales of proprietary PHOLED phosphorescent materials soared.  Net income was $32.8 million or $0.69 per share.  Excluding a one-time write-off of deferred tax assets of $11.5 million...

I have more ideas than I have time to explore them, and it's getting out of hand.  I still need to write the promised articles on Evergreen Solar (ESLR) and Lithium Technology Corp (LTHU), but there are many others that have caught my attention over the last six months or so.  Since the list keeps getting longer, I thought I'd just give you a taste of some of the companies in my inbox, and why they seem interesting.  Since I may or may not ever write articles about any of these, I thought I'd give people the opportunity to...

by Debra Fiakas CFA Shares of Appliance Recycling Centers of America (ARCI:  Nasdaq) has trended downward over the last year, despite some strong fundamental progress in the company’s position the recycling sector.  The corporate name tells at least part of the company’s story.  Besides recycling appliances such as washers, dryers and refridgerators, ARC also sells new and like-new appliances right out of the box.  The company has eighteen stores branded ApplianceSmart across the country.  Services to electric utilities and other energy companies related to energy efficiency programs provide yet another revenue source. In the twelve months ending March 2017, ARC reported...

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 Debra Fiakas CFA Based on Austria, Zumtobel Group (ZMTBF:  OTC or ZAG:  Vienna) is a supplier of modern lighting products using Light Emitting Diode (LED) technology.  Zumtobel sells its lights and components under three international brands Thorn, Tridonic and Zumtobel and two regional brands ACDC and Reiss.  Zumtobel has a long history in lighting with its foundation in the 1950s in Dr. Zumtobel’s Electrogerate und Kunstharzpresswerk.  The Thorn brand, which was acquired in 2000, dates back to the 1920s when founder Jules Thorn set up the Electric Lamp Service Company.  Zumtobel sells lights in over...

On Monday, I wrote that I wouldn't buy a house without an energy audit.  For now, I'm in the minority, but I don't expect that to last.  Each of these trends is likely to lead to more homes getting energy audits: Rising energy costs: as energy prices rise, knowing what to do to improve your home's energy efficiency will become more valuable. Weak real estate market.  Now that the boom is past us, new home builders need to put more effort into providing and advertising a quality product in order to attract buyers and stay in business. ...

Tom Konrad CFA Contrary to common belief, the greatest barrier to the adoption of clean energy is not the cost.  In many cases, cost is not a barrier at all: it's an advantage.  That's because energy efficiency measures are usually so cost-effective that they not only pay for themselves, they can often pay for the addition of flashier clean energy technologies such as solar and wind. For institutions in the Federal and MUSH (Municipalities, Universities, Schools, and Hospitals) sectors, the main barriers are lack of capital and expertise.  Lack of capital arises because such institutions traditionally consider...

Charles Morand Last Thursday, I reviewed two chapters from the recently published book "Investment Opportunities for a Low Carbon World"*. This post reviews two more.  Geothermal Energy Alexander Richter, Glitnir Bank (now Íslandsbanki) Geothermal is one of the most interesting forms of clean power generation there is. As noted by the author, the most convincing argument for geothermal electricity is the fact that it operates at capacity factors in the upper 90s. This makes it the only renewable technology suitable for baseload power with the exception of dam-based (i.e. large-scale) hydro. However, as...

This article is a continuation of my Ten Alternative Energy Speculations for 2008, with picks #8, 9, and10 published last Thursday.  If you haven't already, please read the introduction of that article before buying any of the stock picks that follow.  These companies are likely to be highly volatile, and large positions are not appropriate for many investors.   My least risky picks (#8,9, and #10) are part of that same article; my most speculative plays (#1-3) will are here. #7 Electro Energy, Inc. (NasdaqCM:EEEI) $0.68 Electro Energy has risen 36% in the month and a half since I last...

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...

John Petersen Last week Societe Generale published a thematic research report titled "A new world order, when demand overtakes supply" which examines the macro-economic and demographic trends that will transform the global economy over the next 20 years. It mirrored the theme of Jeremy Grantham's April 2011 quarterly letter titled "Time to Wake Up: Days of Abundant Resources and Falling Prices Are Over Forever" and did a great job of summarizing an issue I touched on in "How PHEVs and EVs Will Sabotage America's Drive For Energy Independence." In the words of Societe Generale: "So, while...

by Debra Fiakas CFA Appliance Recycling Centers of America (ARCI:  NYSE) is a typical small company, toiling away in seeming obscurity and struggling to get proper valuation of their success.  There is little glamour in old refrigerators and washing machines, but ARCA has figured out how to wring cash from recycling our household appliances.  In the last three fiscal years the company converted 1.6% of sales to operating cash flow. Unfortunately, things have turned a bit sour in the world of old Frigidaires and tired Maytags.  Last week ARCA reported financial results for the quarter ending September 2015.  The company suffered...