Ten Clean Energy Stocks for 2014: March Update

After a rough January, the stock market recovered in February, while clean energy stocks partied like it was 2013.

My annual Ten Clean Energy Stocks model portfolio also had a good month, rising 6.0 percent, and is now up 4.7 percent for the year in dollar terms, and up % in local currency terms. My broad market benchmark (the iShares Russell 2000 index) is up 7.5 percent for the period and 1.5 percent for the year. Clean energy stocks soared higher, with the Powershares WilderHill Clean Energy ETF (NYSE:PBW) up 16.3 percent for the period and 15.7 percent for the year.

Turning to individual stocks in the model portfolio, several companies have reported 2013 results. I cover this and other significant news below.

Individual Stock Notes

(Current prices as of February 3rd, 2014. The "High Target" and "Low Target" represent the ranges within which I predicted these stocks would end the year, although I expect a minority will stray beyond these bands due to unanticipated events.)

1. Hannon Armstrong Sustainable Infrastructure (NYSE:HASI).
Current Price: $14.05. 12/26/2013 Price: $13.85. Annual Yield: 6.3%. Low Target: $13. High Target: $16.
YTD Total US$ Return: 1.4%

Sustainable Infrastructure REIT Hannon Armstrong announced full year results. While management reaffirmed their 13 percent to 15 percent target for core earnings and dividend growth, the company took a provision of $0.69 per share on investment in a geothermal loan, which was a larger write-down than I had anticipated. Some of this may be recovered in future quarters.

Because of the loss, management presented significant details about the credit quality of its other assets in the conference call, 96 percent of which is investment grade. This seems to have reassured investors, as the stock has been rising to bring its yield more in-line with other clean energy income stocks.

2. PFB Corporation (TSX:PFB, OTC:PFBOF).
Current Price: C$5.30. 12/26/2013 Price: C$4.85. Annual Yield: 4.5%. Low Target: C$4. High Target: C$6.
YTD Total C$ Return: 10.5%. YTD Total US$ Return: 6.8%

Green Building company PFB scaled back its stock repurchase program in February, but board member and large shareholder, Edward Kernaghan has continued his purchases, buying 3,700 shares since the last update. The company paid its regular C$0.06 dividend in February.

3. Capstone Infrastructure Corp (TSX:CSE. OTC:MCQPF).
Current Price: C$3.84. 12/26/2013 Price: C$3.55. Annual Yield: 7.8%. Low Target: C$3. High Target: C$5.
YTD Total C$ Return: 10.3% . YTD Total US$ Return: 6.6%

Independent power producer Capstone will hold its annual results conference call on March 7th.

4. Primary Energy Recycling Corp (TSX:PRI, OTC:PENGF).
Current Price: C$5.44. 12/26/2013 Price: C$4.93. Annual Yield: 4.1%. Low Target: C$4. High Target: C$7.
YTD Total C$ Return: 11.5% . YTD Total US$ Return: 7.8%

Waste heat recovery firm Primary Energy announced the long-anticipated recontacting of its largest facility on Friday. In the two trading days since, only 920 shares have traded, compared to a three month average daily trading volume of over 20,000 shares. This reflects a lack of willing sellers as shareholders await the company's annual results, to be released on March 18th.

5. Accell Group (Amsterdam:ACCEL, OTC:ACGPF).
Current Price: €14.27. 12/26/2013 Price: €13.59. Annual Yield: 3.9%. Low Target:€11.5. High Target: €18.
YTD Total € Return: 5.0% . YTD Total US$ Return: 5.0%

View the original article here

Ten clean energy shares for 2014: February update

The stock exchange has introduced a rough five weeks since I my annual ten clean energy stocks model portfolio on December 27. My broad market benchmark (iShares Russell 2000 index) is for the period to 5.6%. Clean energy stocks fared better, with the power shares WilderHill clean energy ETF (NYSE: PBW) by only 0.5%, as I write this. Mine is ten clean energy stocks model portfolio 0.9% in local currency, but the weakness of the Canadian dollar (minus 3.5%) and euro (minus 1.5%) turned to this in a $ fall by 1.0%.

Riskier stocks performed better in General, but with much larger differences. The first six income shares lost an average 2% with a standard deviation of 3% on $. The next four growth stocks were flat on average with a standard deviation of 8%. The two extra "speculative" picks carried speculative, with a 35% and the other to 22%, for an average of 7%.

January was pretty quiet for individual stocks in the portfolio, but where there was significant news, I place it below.
Individual camp notes

(Stand: 3 February 2014 at current prices.) "Aim high" and "low target" represent the areas within, which I predicted that these stocks would at the end of the year though I expect that a minority of these bands because of unforeseen events will differ.)

1 Hannon Armstrong sustainable infrastructure (NYSE: rabbit)
Current price: $13,00. 26.12.2013 price: $13.85. YTD total US$ return: annual return: 6.4%. Low target: $13. Aim high: $16.

Sustainable infrastructure REIT Hannon Armstrong on the lower end of the range between my high and low targets for fast start-up based in its large dividend increase in December fell. The only slightly negative news was that an SEC filing the company explained it, had agreed to amend the terms and conditions for a portfolio loan to geothermal developer EnergySource LLC. The balance of the loan amounts to $11.8 million or 74 ? per share. If the loan in default and there was no chance for the recovery of its value, a decrease of 74 ? would be justified. This is by far not the case; a stock seems better suited than the 85 ? have acceptance, we saw a decline of approximately 5 ?. Therefore, I have the vast majority of the pull-back benefit take and concerns by $13 a excellent starting point for anyone to show that not already owned by the storage attribute.

2. PFB Corporation (TSX: PFB, OTC: PFBOF)
Current price: C$ 5,12. 26.12.2013 price: C$ 4.85. Annual returns: 4.9%. Low target: C$ 4. Aim high: C$ 6.
YTD total C$ return: 5.6%. YTD total US$ Return:1.9%

Green Building society PFB explains the regular 6 ? quarterly dividend to shareholders of record on February 14. The company also continues to buy back its own shares. 5,700 Shares bought during the period. A Board member and major shareholder, Edward Kernaghan, bought also 3,800 shares on the open market.

3. Capstone infrastructure Corp. (TSX: CSE.) OTC: MCQPF)
Current price: C$ 3,55. 26.12.2013 price: C$ 3,55. annual return: 8.5%. Low target: C$ 3. Aim high: C$ 5.
YTD total C$ return: 1.1%. YTD total US$ return: 2.4%
Capstone paid its regular quarterly dividend of C$ 0.075 on January 31.

4. Primary energy recycling Corp (TSX: PRI, OTC: PENGF)
Current price: C$ 5.00. 26.12.2013 Price: C$ 4,93. Annual yield: 4.1%. Low target: C$ 4. Aim high: C$ 7.
YTD total C$ return: 1.4%. YTD total US$ return: 2.1%
I interviewed the primary CEO and wrote a detailed article, which you can find here. I add to my position.

5. Accell Group (Amsterdam: ACCEL, OTC: ACGPF)
Current price: €13,61. 26.12.2013 price: €13.59. Annual return: 5.5%. Low target: €11.5. High target: €18.
YTD total € return trip: 0.1%. YTD total US$ return: 1.5%
Bicycle manufacturer and distributor throughout Europe to streamline its Accell. The company sold Hercules, one of his four German brands. Accell has for the last 20 years owned Hercules and a profit of €3 million (€0.12) will book for the transaction.

6 New flyer industries (TSX: NFI, OTC: NFYEF)
Current price: C$ 11.04. 26.12.2013 Price: C$ 10,57. Annual return: 5.1%. Low target: C$ 8. Aim high: C$ 16.
YTD total C$ return: 4.4%. YTD total US$ return: 0.8%.

Cannaccord Genuity updated bus manufacturer new flyer to "Buy", probably as a reaction to strong shipments in the fourth quarter. The company once again a warning that margins 2014 highly competitive market the financial crisis weak due to the expected deliveries on bus contracts in pricing would.
View the original article here