Investor Ideas #Renewable Portfolio - Out performs S&P 500 almost 8 Times - 235% vs 31%- J Peter Lynch

Investor Ideas #Renewable Portfolio - Out performs S&P 500 almost 8 Times - 235% vs 31%- J Peter Lynch

 

Point Roberts WA, Delta BC – Feburary 17, 2021 (Investorideas.com Newswire) Investorideas.com, a global news source and leading investor resource covering Cleantech and renewable energy stocks issues today's Cleantech column at Investorideas.com and Renewableenergystocks.com with J.Peter Lynch.

 

Read this in full at https://www.investorideas.com/news/2021/renewable-energy/02171J-Peter-Lynch-Renewable-Portfolio.asp

 

 

 

As I said in past articles we are at an historic junction in human history in which we are transitioning from the age of fossil fuels to the age of renewables and distributed energy, in effect a planetary paradigm shift.  The tide has turned and worldwide momentum is irreversible. This change is occurring around the world and has been accelerating dramatically for the last 3 years.

 

The two most compelling factors in this transition to renewables are:

1. Cost: Renewables have a far lower initial cost, much faster time to build and a far lower cost to operate

 

2. Need for Water: Renewables have very little need for fresh water to operate and generate power. Fossil fuels need enormous amounts of fresh water which we need for drinking and food production.

 

Strangely neither of these advantages are seldom highlighted or even mentioned in most articles about the future of energy. It is even more amazing, given that both of these compelling advantages are truly insurmountable!

 

1. Cost – Renewables are cheaper NOW** than any other energy generating technology and they are getting cheaper every year at an accelerated rate, whereas fossil fuel technologies are getting more expensive every year.

 

**Renewables are in fact FAR cheaper than all forms of fossil fuels, when you compare all of the relevant factors – initial cost, timing of cash flows (cost of money), absence of variable fuel costs for decades, far superior job creation, no pollution, no huge resultant cleanup costs and few if any health related costs.

 

2. Need for Water – We cannot keep using enormous amounts of fresh water for the extraction of fossil fuels, fracking, coal mining and electric power plants, including nuclear plants. For example, a large nuclear plant can use up to a BILLION gallons of fresh water a day – which is heated, turn into steam to turn turbines to generate electricity. Renewables on the other hand use almost no water for the production of their electrical energy.

 

** It was shocking, at least to me, how small the amount of fresh water on Earth is and how little of that small amount is actually available for use.

 

Only 3% of the water on Earth is fresh. Of that surprisingly small amount 83% of that fresh water is unavailable: locked up in glaciers, polar ice caps, atmosphere, and soil; highly polluted; or lies too far under the earth's surface to be extracted at an affordable cost. As a result – fresh water is far more precious and scarce that most of us think and it is critical that it be carefully conserved and managed.

 

** These are two of the major reasons I think the renewable energy sector will continue to out preform for perhaps decades.

 

As we said in our last article on 29 January 2021:

“It will be the savvy and aware investors and corporations that will take advantage of this. Now that the economics are much more obvious this will spark the investment community and they will further accelerate the transition. It will become increasingly difficult to ignore the superior financial numbers of renewables as a result:  the best investment in the history of mankind and most important factor in saving our planet will be the identical – renewables.”

 

Investor Ideas Renewable Energy Portfolio Update

 

 Our portfolio started on June 26 2020 – has returned 235% in a little more than 7 months, compared to a 31% return for the S&P 500, almost 8X out performance as of the close of trading 2/12/21.

 

It has performed, far better than I thought it would. It was diversified being divided into among companies with dividends (stronger companies), two ETF’s covering solar companies and electric car companies, three companies in the wind sector, two in the fuel cell sector, two in the solar inverter sector and one in the silicon production sector.

 

    These are the companies currently in the Investor Ideas Renewable Energy Portfolio

1. Northland Power, NPI-TO (symbol my vary - listed on Toronto Exchange), Yield = 3.59%,

2. Brookfield Renewable Partners, BEP, Yield = 4.57%

3. NextEra Energy L.P. , NEP, Yield = 4.37%

4. Hannon Armstrong, HASI, Yield = 1.75%

    These two ETF’s are focused on the solar energy sector and the electric car sector

5. Invesco Solar, TAN, Yield = 0.25%

6. KraneShares Electric Cars and Future Mobility, KARS, Yield = 1.75%

    These two companies are in the Wind Sector

7. Orsted ADR, DNNGY, Yield = 0.85%

8. Vestas Wind, VWDRY, Yield = 0.81%

    These companies are mostly smaller and not as financially strong. They are more volatile and therefore can be either a bigger winner or a bigger loser.

9. Gamesa Corp., GCTAF, Wind Sector, Yield = 1.18%

    These two are in the Fuel Cell Sector (Energy Storage)

10. Plug Power, PLUG, Yield = 0.91%

11. Ballard Power, BLDP, Yield = 1.58%

    These two companies are the leading companies in Inverters (devices that convert DC to AC power)

12. Solar edge Technologies, SEDG, Yield = 0.95%

13. Enphase Energy, ENPH, Yield = 1.0%

    This last company is a leading company in the manufacturing of Silicon for solar company’s products

14. Daqo New Energy, DQ, Yield = 0.94%

 

Here are the individual returns of each of the stocks in the Portfolio

1. Northland Power, NPI-TO = + 52.31%

2. Brookfield Renewable Partners, BEP = + 85.47%  

3. NextEra Energy L.P.  NEP = + 66.48%

4. Hannon Armstrong, HASI = + 129.71%

5. Invesco Solar, TAN = + 247.99%

6. KraneShares Electric Cars and Future Mobility, KARS = + 94.71%

7. Orsted ADR, DNNGY = +49.04%

8. Vestas Wind, VWDRY = +113.00%

9. Gamesa Corp., GCTAF = + 133.78%

10. Plug Power, PLUG = + 825.18%

11. Ballard Power, BLDP = + 163.66%

12. Solar Edge Technologies, SEDG = +155.45%

13. Enphase Energy, ENPH, Yield = + 355.87%

14. Daqo New Energy, DQ = + 787.54%

 

What To Do Now

Given the amazing and rapid rise of the portfolio, with the worst stock returning 49.04% I would advise taking a minimum of 100% of your initial investment off the table. When I constructed the portfolio I assumed that an investor put $5,000 into each stock, the number could obviously be higher or lower. Assuming you invested $5,000 in 14 stocks you would have invested $70,000.  With the portfolio retrurning 235% that would mean it is now worth $164,500 ($70,000x14).

 

Aa a result, you could take $5,000 out of each stock and continue to hold the portfolio with zero cost.

 

However, I would personally recommend, at a minimum, considering the speed and the magnitude of the portfolios gain to take out an addition $5,000 dollars from each, in my opinion, of the 7 highest risk stocks – DQ, ENPH, SEDG, BLDP, PLUG, TAN and GCTAF for an additional $35,000.

 

In doing this you would take out your initial investment of $70,000 + $35,000 for a healthy profit of 50%. Leaving $59,500 in the portfolio to let it play out. This would also give you $105,000 of “dry powder” to take advantage of other future opportunities as they present themselves.

 

In future articles I will keep updating the porfolios status and any actions I feel are warranted. Plus information on new situations, technologies and any overviews of how they will be implemented as the transition to a Renewable Energy Future advances.

Mr. Lynch worked, for 36 years as a Wall Street security analyst, an independent security analyst and private investor in small emerging technology companies. He has been actively involved in following developments in the renewable energy sector since 1977 and is regarded as an expert in this field. He was the contributing editor for 17 years to the Photovoltaic Insider Report, an early publication in PV that was directed at industrial subscribers, such as major energy companies, utilities and governments around the world. He is currently a private investor and has from time to time been a financial/technology consultant to a number of companies. He can be reached via e-mail at: solarjpl@aol.com

 

Peter Lynch
solarjpl@aol.com

 

There can be no greater crime against humanity than the deliberate and methodical, destruction of conditions that make human life possible on Earth. It is cruel, insane and there is NO defense for the amoral perpetrators of this horrific crime.

 

For investors following renewable energy and solar stocks, visit the directory of publicly traded stocks https://www.investorideas.com/Companies/RenewableEnergy/Stock_List.asp

 

Visit the Cleantech and Climate Change Podcast page at Investorideas.com

 

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