Seven green shares I said to my sister to buy

I also promised a follow up article on my buy recommendations. Here they are:

Ameresco, Inc. (NYSE:AMRC)

Current Price: $8.44

Suggested Limit Price: $9.20 (sister); $8.50 (readers)

Suggested Allocation: 21% (sister); 25% (readers)

Ameresco is a leading performance contracting company, meaning that they install energy efficient and renewable energy solutions for institutions and government entities which are paid for out of the institution’s energy budget, from the cost savings. Ameresco disappointed investors with their guidance last quarter, largely due to the dysfunction in Washington. Ameresco’s largest customer is the U.S. government.

The stock has been trading down since. On February 15th, Ameresco released an outlook for its Fiscal 2012 results, which will be released in full-on March 1st. It said 2012 earnings should be even worse than previously expected, due to weather and fiscal uncertainty, yet Ameresco’s backlog is at a record high. As expected, Q4 2012 was bad, but the next few years look good. This “disappointment” has produced a buying opportunity which I don't expect to last.

I’m more focused on the future than last quarter, and I expect that future to be bright. In his State of the Union Address, Obama promised to take executive action to reduce carbon pollution and accelerate our transition to more sustainable sources of energy, unless congress acts to combat climate change.

While Obama can't change legislation, he can require increased energy efficiency and use of renewable energy within the government itself. And goverment entities rely on Ameresco and other performace contractors to fulfull just such mandates while staying within (and sometimes reducing) existing energy budgets.

Ameresco's 2012 results may be weak, but it can look forward to growing demand for its services from the Federal government (already its biggest customer) over the next four years.

Zoltek Companies (NASD:ZOLT)

Current Price: $8.86

Suggested Limit Price: $7.50 (sister); $8 (readers)

Suggested Allocation: 21% (sister); 10% (readers)

Zoltek makes carbon fiber. Their biggest market is currently large wind turbines, and their biggest customer Vestas (Copenhagen:VWS; OTC:VWDRY). The extension of the Production Tax Credit extension should help the company this year, but the long term bullish reason to own this stock will come when auto manufacturers turn to carbon fiber to reduce vehicle weight and improve fuel efficiency, as they are likely to do over the next few years to meet increasingly stringent CAFE standards and EU emissions requirements.

Zoltek is the stock that led me to pick last week to send my sister her annual recommendations. It was briefly trading below $8, and even fell below $7 for a day. I did not think the opportunity would last. Unfortunately, the window was shorter than I expected, and her limit order did not execute. It probably won’t now, so I’m afraid we’re going to chalk this one up as “the one that got away.” It could still fall back again, but I don’t expect it. It’s still a good buy around $8, but not the screaming deal it was. I’d suggest readers put in limit orders at $8, but for fewer shares.

Power REIT (NYSE:PW)

Current Price: $10.79

Suggested Limit Price: $10.75

Suggested Allocation: 18%

Power REIT is a tiny Real Estate Investment Trust which owns 112 miles of railway and is starting to invest in Real Estate under renewable energy farms. The $0.40 (3.8%) annual dividend makes it a nice dividend stock for a long term hold in my sister’s conservative portfolio, but the company also has the potential for some incredible upside if they prevail in an attempt to foreclose on the massively unfair lease of their track. Details here.

US Geothermal (NYSE:HTM, TSX:GTH)

Current Price: $0.32

Suggested Limit Price: $0.31

Suggested Allocation: 5%

US Geothermal is a geothermal project developer with projects in Nevada and Oregon. Many of its plants have recently come on-line, so earnings growth over the next year is already built in. Nevertheless, developing geothermal projects is a very risky business, so I was conservative on the limit price (there’s a good chance the order won’t execute) and kept the allocation small.

Canadian Stocks

I found out after I sent my sister her suggested trades that her broker does not let her trade Canadian stocks, even if they have a US OTC ticker, so my sister has not purchased any of these. I won’t be including any Canadian stocks next year unless I can persuade her to open an account with a better broker. But there’s no reason readers can’t benefit from this year's picks below.

Waterfurnace Renewable Energy (TSX:WFI, OTC:WFIFF)

Current Price: $17.07

Suggested Limit Price: $15.50

Suggested Allocation: 18%

Waterfurnace is a leading manufacturer of geothermal heat pumps. A reliable dividend payer (C$0.96 annually) it’s a long time favorite of mine. I traded as low as $14.90 in late January, but was already well above the limit price I gave her when I suggested buying to my sister. Although I did not really expect the trade to go through, I would have been happy if it had. This is one to watch long term and accumulate on any dips.

Finavera Wind Energy (TSXV:FVR, OTC:FNVRF)

Current Price: $0.20

Suggested Limit Price: $.21

Suggested Allocation: 12%

Finavera Wind Energy is a wind project developer with a focus on the early stages. The signed an agreement in December to sell almost all their current projects when those projects are ready to build (probably in the next 1-2 years) for a total of $40M. According to my valuation, the stock would be worth C$0.77 a share if they succeed. While nothing is certain, the stock is only trading at C$0.20 to C$0.21, which seems like an absolute bargain to me. That’s why I told my sister to put such a large allocation into such a tiny stock. Too bad she can’t buy it.

Alterra Power (TSX:AXY, OTC:MGMXF)

Current Price: $0.39

Suggested Limit Price: $0.41 (sister); $0.40 (readers)

Suggested Allocation: 5%

Like US Geothermal, Alterra is a renewable energy project developer and operator that seems currently undervalued. Their assets are mostly geothermal, wind and run of river hydroelectric in the Western U.S., Iceland, and Chile. The stock has been going nowhere recently, but could rise on the possible sale of a geothermal plant in Iceland or if the Phillipine utility Energy Development Corporation decides to move ahead with a partnership to develop Alterra’s South American assets.

Conclusion

Zoltek and Waterfurnace may have risen a bit far to buy now, but Ameresco is looking like a deal which may not last past their earnings announcement on March 1st. Finavera still looks like a steal to me as well. Power REIT, US Geothermal, and Alterra can also currently be bought at attractive prices.

I can’t real expect to produce the stunning returns I managed for my sister last year unless the clean energy sector as a whole takes off. Yet that could easily happen with prices at their current depressed levels and the President's re-affirmation of his commitment to combat climate change in his State of the Union address.

This article was originally published on AltEnergy Stocks and was republished with permission.

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Obama seven fast tracks renewable energy infrastructure projects

These infrastructure projects would produce almost 5,000 MW of clean energy. As part of an executive order, issued in March 2012 the Office of management and budget pays with a government-wide effort to make, in the approval and review process for infrastructure projects of more efficient and more effective, time saving during the journey better for the environment and the local communities. Additional accelerated infrastructure projects will be announced in the coming weeks.

Thanks to a coordinated and focused review process in the last three years, the Department of the Interior, more utility-scale renewable energy projects on public land as combined in the past two decades - approved a total of 31 new projects.

Mohave wind energy (BP wind)

State: Arizona

Co-ordinating authority: Department of the Interior, Bureau of land management, Bureau of reclamation

Enable target date for the conclusion of the Federal Republic and to review decisions: January 2013

The proposed Mohave County wind farm is a wind-powered electrical generation, managed by the Bureau of reclamation in Mohave County, Arizona would managed to about 38.099 hectares of public land by the Bureau of land management and 8,960 acres of land. If adopted, it would produce up to 425 MW wind energy and help the state its objectives for renewable energies meet Arizona.

Quartzsite, Arizona solar energy (solar reserve)

Coordinating agency: Department of the Interior, Bureau of land management

Enable target date for the conclusion of the Federal Republic and review of decisions: December 2012

The proposed concentrating solar power plant would land by the Bureau of land management is managed on 1.675 hectares. There is an estimated 100 MW of clean energy - enough, makes about 30,000 apartments - and help in the State of Arizona hit his targets for renewable energy.

Desert harvest solar energy (EnXco)

Coordinating agency: Department of the Interior, Bureau of land management

Enable target date for the conclusion of the Federal Republic and review of decisions: December 2012

The proposed project desert harvest would use solar power on about 1,200 acres in Riverside County, California photovoltaic technology. The project would produce an estimated 150 MW solar energy, enough, makes about 45,000 apartments.

Coordinating agency: Department of the Interior, Bureau of land management

Enable target date for the conclusion of the Federal Republic and to review decisions: December 2012

This proposed solar photovoltaic system would be 4,893 acres in Riverside County, California. There is an estimated 750 MW solar power – enough clean energy to 225,000 homes makes - with the help its targets for renewable energy in the State of California to achieve.

Moapa solar energy Center (RES Americas)

State: Nevada

Coordinating agency: Department of the Interior, Office of Indian Affairs

Enable target date for the conclusion of the Federal Republic and to review decisions: December 2013

This solar project is in collaboration with the Moapa band of Paiute Indians on a 2,000-acre site of the Moapa River Indian reservation, land managed by the Bureau of land management in Clark County, Nevada developed. If approved, the deal with 200 MW project would 100 MW photovoltaic technology and 100 MW concentrated solar power technology. Once has constructed, the proposed project would be the first large-scale solar projects on tribal lands in the United States one

Silver State South (first solar)
Coordinating agency: Department of the Interior, Bureau of land management

Enable target date for the conclusion of the Federal Republic and to review decisions: March 2013

The silver of South solar energy project is a solar power generation plans public lands on proposed 13,043 hectares. If approved, it is an estimated 350 MW of clean energy with photovoltaic technology - enough, makes approximately 105,000 apartments - and help of Nevada meet its renewable energy targets. Construction for the 50 MW Silver State North project is complete, so that it will deliver the first solar project on public land of electricity to the grid.

Chokecherry/Sierra Madre wind energy (power company of Wyoming)

State: Wyoming

Coordinating agency: Department of the Interior, Bureau of land management

Enable target date for the conclusion of the Federal Republic and to review decisions: October 2014

The proposed project is Chokecherry and County, Wyoming Sierra Madre is about 230,000 hectares in carbon, produce could be up to 3,000 MW wind power – enough to more than 1 million homes makes. The Chokecherry and Sierra Madre wind farm project is the largest proposed wind farm in North America. The project, as it is currently configured, Habitat as "Sage Grouse core areas." avoids critical Sage Grouse Chokecherry is a multi-tiered decision-making process, of a land use plan in October 2012 decision, followed by reviewing a series of right of way applications expected by 2014.

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White House accelerates the seven most important renewable energy infrastructure projects

Obama management announced on August 7 that seven major solar and wind energy projects in Arizona, California, Nevada, and Wyoming are to be speeded up. These infrastructure projects would nearly 5,000 megawatts (MW) electricity produced, enough to makes about 1.5 million apartments generate;

As a part of a presidential executive order this year issued, that pays to make a government-wide effort in the approval and review process for infrastructure projects more efficient and more effective, with the Office of management and budget. BP wind projects include proposed Mohave County wind farm, McCoy solar energy project, a solar photovoltaic array is located on approximately 47,000 acres of public land in Arizona with a capacity of up to 425 MW of electricity and the NextEra proposed would California be 4,893 acres in Riverside County, settled and would produce an estimated 750 MW solar energy. See the White House press release.

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