I missed my regular monthly update on my ten clean energy stocks for 2013 model portfolio last month, and many happen in individual companies since. For this reason, I be divided this half-yearly update in two parts. This part will look at the performance of the portfolio as a whole and the reasons why it is lagging the benchmarks. The next part, the performance of specific stocks will look at news.
Since the last update on the 5th of may, my portfolio made progress 3.0 per cent for a 10.5 percent in the first half back. The portfolio continues to however both measured the mass market of small-cap stocks on my scale the iShares Russell 2000 index (IWM) and the outstanding performance of the clean energy stocks, measured on the leading clean energy ETF, the power shares WilderHill clean energy index (PBW) left behind.
IWM inched 2.7 percent total 17.9 percent return, while PBW first half year back scored an extra 13.9 percent total 34.9 percent.
Clean energy boom
Leading clean energy stocks such as Tesla (NASD: TSLA), SolarCity (NASD: SCTY) and other solaren stocks such as first solar (FSLR) have investors attention and production were recently fishing by stellar returns.
The former seem high riding are, because they have put the naysayers in the shadow, through the provision of better than expected. Electric cars such as the Tesla model S may not be big financial investments, but by all reports, they are great cars. The skeptics could could well remind you that much more than total cost of ownership (TCO) of the car purchase is decision. If TCO all car buyers would ever taken into consideration, we would all be driving small business and municipal budget with an SUV would not exist.
The stronger solar stocks such as first solar gains have more to do with the extreme lows, in that in this sector declined in recent years. While excess capacity still threatens the industry has begun to consolidate and module prices, if not increase, have at least finished descent. The company, which is expected to survive the Shake-Out look like are recovered.
Both of these trends have led to a strong rally for clean energy stocks, which as we have not seen since the financial crisis.
Along with my model portfolio I also a list of six alternative tips of the clean energy companies, I gladly recorded that, but I do not in the main list contain that, rated because I felt they were not as good as the others. I wanted that readers who were uncomfortable selects ten with one of my top instead these alternatives to replace list. For example my picks are more illiquid, and larger investors would not be able to buy them without the share price too much movement. As well as readers who were not able to buy shares, unwilling or not could the only international trade a nine publicly traded US stock portfolio put together.
The above table shows, what would have been the impact of such replacements, and the performance of its clean energy subsectors (efficiency, efficient and alternative transportation and renewable energy developers) also this account for at least four stocks shows sixteen.
As you can see, a focal point of the most liquid stocks have produced the same half-year return as a model portfolio and a purely domestic portfolio would have performed only slightly better. But as a purely international portfolio quite badly made had driven partially by the 5.6 percent decline of the Canadian dollar: five of six listed shares trade in Canada as Toronto Stock Exchange has a large proportion of clean energy companies all over the world.
The core of the problem was that renewable energy developers: Finavera wind energy (TSX-V: FVR, OTC: FNVRF), Alterra power (TSX: AXY, OTC: MGMXF), US geothermal energy (NYSE: HTM, TSX: GTH), and RAM performance group (TSX: RPG, OTC RAMPF). This group dropped an average 23 percent for the year (including the effects of the declining Canadian dollar), despite a number of positive developments for the individual names. All are trading a a substantial discount to the value of their assets with Alterra and RAM power cash flow positive, and us geothermal profitable on a GAAP basis. Finavera, is now in the possession of its assets for sale and I expect that it the current stock price equal money more than double by the end of next year to have.
A bright spot was the performance of my taking alternative transportation and clean transport. I think less by tailwind of Tesla as individual factors in specific enterprises; I'll have the information in the next part of this update.
I hope that the current has clean energy rally continues. This is the case, I am sure that it will bring my less flashy yet more dust will go out for dinner. On the other hand, if the stock market starts excitement for renewable energy companies continue to spread, perhaps renewable energy developers a bit of fairy dust. I would rather fly and eat a little dust than drown in the mud.
The rally "Falter", or even reverse my picks should relatively better, as they have in the last few years. We hope that this happens not: my last years performance was small consolation for some rather gloomy times in terms of clean energy.
Stay tuned for my summary of the last few months of the individual stock news performance and company.
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