Alternative Energy: The Paradigm is the Problem

Tom Konrad CFA Can We Afford Alternative Energy? Most serious critiques of alternative energy boils down to, "it costs too much." True, detractors of wind power sometimes point to the number of birds and bats killed, and some people worry that electric vehicles (EVs) are so quiet that they pose a danger to blind pedestrians.  While such critiques are legitimate in that they are real problems, they can also be alleviated.  Avian fatalities can be greatly reduced by more sensitive siting of wind turbines, and even painting turbines purple.  Nissan has installed an...

Interest Rate Increase? FuhGettaBoutIt!

by Debra Fiakas CFA There has been considerable fuss in recent weeks about the Federal Open Market Committee decision to raise its benchmark interest rate.  The one-quarter point increase has finally been announced and investors now are watching with bated breath to see how the increased cost of funds at the Fed ‘window’ will impact borrowing costs for companies large and small.  In our Beach Boys Index of alternative energy producers, we found a number of companies that rely on debt as a capital source.  However, not all energy producers have debt.  So when Janet Yellen...

Do You Need To Invest In Oil To Benefit From Expensive Oil?

Two months ago, Tom told us how he'd dipped a toe into the black stuff (i.e. bought the OIL etf) on grounds that current supply destruction related to the depressed price of crude oil would eventually lead to the same kind of supply-demand crunch that led oil to spike during the 2004 to mid-2008 period. If you need evidence that the current price of crude is wreaking havoc in the world of oil & gas exploration, look no further than Alberta and its oil sands. The oil sands contain the second largest oil reserves in the world after...

Molycorp: Holding a Stinky Bag

by Debra Fiakas CFA   Last week news agencies reported plans by Molycorp (MCPIQ:  NYSE) to move forward with plans to sell major assets as part of a plan to emerge from bankruptcy.  Molycorp was the single largest producer of rare earths in the U.S. until it discontinued product at its Mountain Pass mine in Colorado.  Molycorp filed for bankruptcy protection in June 2015 after it became apparent that it could no longer support the debt on its balance sheet on historically low selling prices for its rare earth materials. The turn of the tide for Molycorp...

Growing Market Skepticism Towards Chinese Renewable Energy

Bottom line: Weak share reactions to upbeat news from Trina, ReneSola and Ming Yang reflect investor skepticism towards new energy stocks, as they face lingering issues of overcapacity and phasing out of government subsidies. A flurry of upbeat news is in the headlines today from 3 of China’s largest new energy equipment makers, led by a return to the profit column for solar panel maker ReneSola (NYSE: SOL) after a year in the red. At the same time, wind power equipment maker Ming Yang (NYSE: MY) also announced its latest quarterly results that were quite upbeat, and solar panel...

A Sign Of The Times

Alt energy investors figured out early on in this crisis that a widespread shut-down of credit markets coupled with a substantial re-pricing of risk would not bode well for the industry. That's why alt energy stocks have outdone the overall market to the downside over the past year, with the iShares S&P Global Clean Energy Index (ICLN) down more than 60% Vs. the S&P 500 loosing a little under 40% over the same period. Much of this carnage occurred before any real impacts on alt energy had been felt (current prices in equity markets are generally forward- rather...

Graftech Manages the Heat of Competition

by Debra Fiakas CFA Products like Graftech's ultra-thin heat spreader help customers manage the heat. Investors think restructuring will help Graftech do the same. Feeling the heat of competition, graphite materials supplier Graftech International Ltd. (GTI:  Nasdaq) has initiated a restructuring of sorts.  The company’s two highest cost graphite electrode plants will be closed.  Those are located in Brazil and South Africa.  A machine shop in Russia will also be shuttered.  Locks will go on the doors in these locations by the end of...

The Alternative Energy Revolution – Summary of Industry Sectors

Last week I was speaking to Jim Atkinson of Guinness Atkinson Funds (or GA Funds) (see Disclosure below). Jim sent me document or research paper called, "The Alternative Energy Revolution" which was written in April 2006. The document is usually accompanied by a prospectus for the GA Alternative Energy Fund. Today, I am not commenting on the fund itself but will summarize some of the information I found important in "The Alternative Energy Revolution" paper. A link to the document itself follows my summary. Please note, I am simply presenting the information and numbers in the document. ...

Saudis Confirm Switch from Oil to Solar

By Jeff Siegel You probably wouldn't recognize him if you saw him on the street. Heck, you probably don't even know his name. But Ali Al-Naimi is one of the most powerful men in the world. As the Saudi oil minister and chairman of Saudi Aramco, Al-Naimi is not particularly popular with U.S. oil producers, especially after telling the media he didn't care if oil prices crashed to $20 because it was not in the interest of OPEC producers to cut production  regardless of price. Still, he remains the most influential oilman on the planet. Listed as one of Forbes' 50...

Charitable Investments: How to Grow Your Portfolio While Making a Difference

by Mark Tan The country is currently experiencing a shift toward more sustainable living. In addition to the wide array of whole food markets and hybrid cars available to today’s consumer, many people also want their investments working for the greater good. Although these investments have been around for more than a decade, the past few years have seen substantial growth in the areas of charitable investments, sustainable 401ks, and green bonds. No matter your passion, your financial portfolio can make a difference in the world, while still generating profit for you. Charitable Investing 101...

Graphene: It Is All In The Strategy

by Debra Fiakas CFA In the recent series of articles on graphene we have found a number of companies working on more efficient production processes and as well as applications for this exceptional material.  So beguiling graphene is  -  conductive, strong and pliable.  Scientists and investors alike have thought certainly graphene can provide that all-important ingredient that enhances value and creates profits.  In this post we look at two more companies that claim real progress in commercializing graphene materials.  Based in the UK, Applied Graphene Materials (AGM:  LON; APGMF:  OTC) reported no sales in 2014 and...

Does Buying Green Stocks Do Any Good?

Tom Konrad CFA Volt owners are almost universally happy with their cars, despite the fact that very few will recoup the extra costs of the car in gas savings.   Even though the financial savings are small compared to the large up front payment for the vehicle, the emotional payback more than compensates. As someone who helps people invest in green stocks, I can tell you from first hand experience that investor enthusiasm has everything to do with recent financial returns, and not much to do with the good we’re doing. In 2007, when practically any stock which could be...

How Likely Is A Big Rally For Alt Energy Stocks?

Last week, Jefferies & Co. held its Global Clean Technology Conference. Unsurprisingly, the tone wasn't as optimistic as in previous years, with cash and funding worries top of mind. Nearly two months ago, I discussed some tangible signs pointing to looming problems in the industry. However, despite all the gloom, it seems as though several firms (and investors!) are expecting the American Reinvestment and Recovery Act (ARRA) to provide the industry with a lifeline. But will this really be the case? For one thing, the major environmental spending programs in the ARRA are relatively...

Can Public Equity Investing Have Impact?

by Garvin Jabusch There’s an argument in the world of impact investing that goes something like, "impact happens only through private investments; there is no real impact, apart from shareholder engagement efforts, in public equity investing." An associated perception is that investment impact means capitalizing an enterprise beyond what would happen otherwise, meaning private equity alone has the power to provide real impact. But is this true? Publicly traded corporations are the largest and most visible social and environmental bellwethers of the global economy, and the high allocation to public equities in most investor portfolios means public equity...

The Pope and the Climates of Justice

by Jake Raden Pope Francis’s encyclical on global warming and environmental degradation, Laudato Si, identifies our disruptive effects on our climate as social justice and spiritual issues. “Those who possess more resources and economic or political power seem mostly to be concerned with masking the problems or concealing their symptoms,” he writes, lamenting that those with privilege lack a “sense of responsibility for our fellow men and women upon which all civil society is founded.” (Image Courtesy of: http://www.cgdev.org/page/mapping-impacts-climate-change) The image above is from the Center for Global Development and it’s one in a series that ranks...

2006 & Alt Energy Investing: 6 Key Points to Remember from a Great Year

It is customary, at the dawn of a new year, to reflect back on the past year’s highlights. This exercise is generally conducted immediately before the new year, so you could say I’m a little late. However, this time around, instead of creating my own list of key things to remember from 2006, I decided to see what the heavy hitters in the alt energy and clean tech spaces had to say. I picked 3 sources that I read religiously and that all published such a list for '06. They are: Clean Break, Cleantech Blog and Red Herring....
Close Bitnami banner
Bitnami