Ten Clean Energy Stocks For 2018: Stormy Winter
Tom Konrad Ph.D., CFA
While the broad market has been turbulent for the start of 2018, clean energy stocks have fared worse than most. The Trump administration's anti-environmental efforts had little effect on clean energy stocks in 2017 (it was a banner year for this model portfolio). So far, this year has been quite different. Last year, investors seemed unfazed by the chaos in Washington, but with the single "win" of the Republican tax give-away to corporations, investors now seem to think that Trump may indeed be able to deliver on his polluter-funded agenda.
Income-oriented stocks have also been taking a...
Finding a Bottom and Model Portfolio First Half Returns
By Tom Konrad, Ph.D., CFA
Even as the broad market rose, the start of 2021 was brutal for clean energy stocks. The sector experienced a bubble in late 2020 and January this year as optimism grew that we finally had a President who understands the magnitude of the climate problem and has committed to do something about it. The bubble also grew from the great hope that with the presidency and slim majorities in both houses of congress, he would actually be able to get his agenda through.
That might have happened if the Senate Republicans were interested in governing and...
Why I Sold My Utility Stocks
In times like these of financial uncertainty, regulated utilities have traditionally been considered a safe haven. But that is changing. The Dow Jones Utilities Average was down 30% in 2008, vs. a 34% drop in the Dow Industrials. Not much of a safe haven. In a recent interview, utilities analyst Daniel Scotto noted, that the utility industry offers "a lot less security" than it used to. His reasoning is based mainly on the fact that the regulated portion of utility company's business is smaller than it has been in previous recessions, making them vulnerable to lower growth (or even...
Ten Clean Energy Stocks For 2014: May Update
Tom Konrad CFA April showers fell on both the broad market and clean energy stocks last month, but my picks weathered the storm relatively well. My clean energy benchmark (PBW) was down 5.9% since the last update, and my broad market benchmark (IWM) fell 1.7%. Meanwhile 10 Clean Energy Stocks for 2014 model portfolio also fell 1.7%. For the year so far, the clean energy benchmark is up 4.5%, having given back most of its large February gains, while the broad market is down 2.5%. My model portfolio is up 2.2%, having...
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...
AAER: Tailwinds Or Hot Air?
Charles MorandLast week, I added a little to my position in AAER (AAERF.PK). I first took a long position in AAER, the Canadian-based MW-size wind turbine maker, over two years ago. I've since pared down it significantly, both because I wanted to take some profit after a meteoric rise in share price in Q4 2007 and later because of the company's seeming inability to get orders for more than a couple of turbines at a time. Although there was, before the credit crisis hit, a severe shortage of wind turbines and wind turbine components, barriers to...
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...
Ten Clean Energy Stocks for 2010: Third Quarter Update
Tom Konrad CFA I like to think that one of the things that distinguishes me from the mass of investment bloggers and newsletter writers is that I write about my mistakes, as well as my great calls. This is not just a service to readers, but a service to myself. Overconfidence and why I write about my mistakes One of the most pernicious cognitive errors common among stock market investors arises from our wish to see ourselves as great investors. One of the ways we accomplish that goal is to selectively and unconsciously self-edit our...
Ten Clean Energy Stocks For 2018: Wrap Up
by Tom Konrad Ph.D., CFA
Almost every major index fell in 2018. My Ten Clean Energy Stocks model portfolio and the Green Global Equity Income Portfolio (GGEIP), the real-money portfolio that I manage were not exceptions. Still, I'm satisfied with their performance: the model portfolio lost only 1.3 percent for the year, while GGEIP was down 2.6 percent. That's well ahead of most indexes, including my benchmarks YLCO (down 7.8 percent) and SDY (down 4.1%.) These benchmarks are intended to reflect the performance of clean energy dividend stocks and general of dividend stocks, respectively. Non-income oriented indexes such as the...
June Bloom: Ten Clean Energy Stocks For 2014, Q2 Update
Tom Konrad CFA After two weak months, June brought a strong recovery to clean energy stocks and the market in general. The broad market benchmark IWM put on 7.2%, reversing its previous loss for the year to enter the 4th of July holiday up 4.7%. My clean energy benchmark PBW shot up 8.6%, for year to date gains of 9.9%. Meanwhile my relatively conservative 10 Clean Energy Stocks for 2014 model portfolio rose 3.6%, retaining its lead on the broad market with a 7% gain so far this year, but falling...
Ten Clean Energy Stocks For 2015: Marching Ahead
Tom Konrad CFA My Ten Clean Energy Stocks for 2015 model portfolio added a second month to its winning streak, with a 6.1% gain for the month and a 5.7% gain for the year, despite a continued drag by the strong dollar. If measured in terms of the companies' local currencies, the portfolio would have been up 7.5% for the month and 10.5% for the quarter or year to date. For comparison, the broad universe of US small cap stocks rose 1.5% for the month and 4.0% for quarter, as measured...
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......
In Review: 10 Clean Energy Stocks for 2009
Tom Konrad, CFA 2009 was a banner year for my clean energy stock picks, which are up 57% over 12 months, greatly exceeding their benchmarks. Over the last 12 months, my ten green energy stocks for 2009 are up 57% vs. 29% for the S&P 500, and 12% for my clean energy benchmark, the iShares S&P Global Clean Energy Index (ICLN), the two indexes I specified for benchmarks when I published the list a year ago. Below is a detailed rundown of the results. Company Ticker Change 12/27/08 to 12/27/09 Dividend &...
Change Winds Blow for Renewable Energy Income Trusts
Renewable energy is still very much in its infancy, which means that companies in the space are either profitless or high-multiple startups, or divisions of much larger companies (GE Wind (NYSE:GE), or utilities such as FPL Group (NYSE:FPL) and Xcel (NYSE:XEL) which get much of their power from conventional generation.) This presents a dilemma for investors who understand the compelling drivers for the sector, but whose risk tolerance or financial needs indicate an income-based investing strategy. Canadian Income Trusts in Renewable Energy A few Canadian Income Trusts have historically gone some way towards filling this niche....
Ten Clean Energy Stocks for 2011: Year In Review
Tom Konrad CFA My clean energy portfolio outperformed again in 2011, but it was a Pyrrhic victory. Without a doubt, 2011 was a horrible year for Clean Energy stocks, nearly as bad as 2008. The difference was that, in 2008, the entire stock market was crushed, while this year, the broad market ended with only modest declines compared to clean energy stocks. Based on 2010 and 2011 closing prices, the broad market (as measured by the performance of the Russell 2000 index), was down 10%, while clean energy stocks were down 52%, as...
Ten Clean Energy Stocks For 2018: Oddballs Spring Back
After a stormy winter for the broad market and clean energy stocks, including my picks, March and April brought relative calm. Better yet, my model portfolio has rebounded from its February lows, although its benchmarks (SDY for the broad market of income stocks and YLCO for clean energy income stocks) have mostly been treading water.
The gains were led by two of my less conventional clean energy picks, Seaspan (SSW) and InfraREIT (HIFR). Seaspan owns (mostly very efficient) container-ships, which most people would not associate with clean energy, but which I include because they they are much less energy intensive...
