10 Clean Energy Stocks for 2009

Here is a mini-portfolio of ten Renewable Energy and Energy Efficiency Stocks I expect to do well in 2009. Last year, I brought you ten speculative picks in Renewable Energy and Energy Efficiency, and I evaluated them against clean energy mutual funds and ETFs on Monday. I chose to go with speculative picks, because I did not expect readers to be interested in the stodgier, value-oriented picks I usually prefer.

Given the lessons of the credit crisis, if you still prefer speculative picks, you're an inveterate gambler. If I get enough requests in the comments here, I'll also come up with a list of speculative picks for 2009 as well. These stocks, however, are intended for a more conservative investor who wants to do something about global warming and possibly profit from the growing investment in alternative energy.

This model portfolio is not intended as investment advice.

Company	Ticker	Price 12/27/08	Articles/Notes
The Algonquin Power Income Trust	(AGQNF.PK)	$1.82	Algonquin Power*; Clean Energy Income Trusts
Cree, Inc.	(CREE)	$15.06	Efficient Lighting, 10 for 2008
First Trust Global Wind Energy ETF	(FAN)	$11.84	Wind ETF FAN, Wind ETFs Compared
General Electric	(GE)	$15.97	Solid, Clean Companies Ready for Stimulus
Johnson Controls	(JCI)	$16.94	Solid, Clean Companies Ready for Stimulus, Johnson Controls
New Flyer Industries	(NFYIF.PK)	$6.60	New Flyer, Dividend-paying Energy Efficiency Companies
Ormat	(ORA)	$29.79	Geothermal Power
Trinity Industries	(TRN)	$15.00	Solid, Clean Companies Ready for Stimulus; Trinity Industries
Warterfurnace Renewable Energy	(WFIFF.PK)	$17.148	Geothermal Heat Pumps, Dividend-paying Energy Efficiency Companies,
UltraShort S&P500 Proshares ETF	(SDS)	$76.11	I feel there is more downside risk than upside potential for the market as a whole in 2008. This ETF is included to offset some of that risk.

*forthcoming article. Link will be broken until article is published.

For readers who feel that conglomerates like Johnson Controls, Trinity, and General Electric don't belong in a "Clean Energy" portfolio, the inclusion of SDS can also be seen as a way to offset the performance of the non-clean energy parts of these companies. If this portfolio were included in a larger portfolio containing large cap stocks, another way to acheive a similar effect would be to reduce the allocation to large cap stocks by as much money as is allocated to two stocks in this portfolio instead of including SDS.

I plan to publish updates on how this equal-weighted portfolio is performing in comparison to the S&P 500 and The Van Eck Global Alternative Energy Fund (GEX), an ETF which I consider to be the best alternative energy fund for investors looking for a single alternative energy investment.

DISCLOSURE: The author owns AGQNF, CREE, FAN, GE, JCI, NFYIF, ORA, TRN, WFIFF, and SDS.

Comments

[WACG:]

If your "model portfolio" in not intended as investment advice then what is the purpose of it!? What would be the difference if you simply listed a completely random selection of companies? After all, none of it is "investment advice".

2008 Dec 31 08:30 AM

[tylakewalker:]

To WACG

"The web is populated with idiots that have some weird need to spout opinions"

yes like you.

Why the negativity? No one forced you to read for this. You didn't pay for this article.

2008 Dec 31 09:47 AM

[Careful Inv...:]

This stock was hit very hard after it reduced its dividend from about 0.80 C to 0.20C per year, effective 3 months ago. The management probably made a wise decision, holding cash in order to safeguard its current holdings as well as to purchase other assets without borrowing any or as much money. The stock immediately went to about $1.90 US, down from $6.50 to $7.00 US. In recent days it has traded as low as $1.42 US. If you go to the fund's web site, they do a good job in showing the various clean energy investments that they are involved in, and they have a good presentation of financials. The stock still yields north of 8%, and it is my sense that this is a good clean utility investment.

2008 Dec 31 10:17 AM

[DuffBeer:]

Tom ,
Keep up your fine work on bring new ideas and possible investments
to us . many of us appriciate the sharing the internet has brought us. Sure one has to figure out is this for me and does it fit into my goals .,do the homework.
WACG did you have a bad day !!!!!

2008 Dec 31 10:52 AM

[Murph3637:]

Tom,

Thanks for the helpful information. I would like to see your speculative picks for 2009. Keep up the good work.

2008 Dec 31 11:33 AM

[smlcap:]

Interesting info, again Tom. TRN Has been nagging away at me since it was around the $14.00 mark. Don't ask me what's holding me back. It could be that I have a position in PWR, and it has been good to me. TRN is at $15.45 as I write. I may finish off 2008 owning some after all. Or, it may be a good way for a procrastinator like me to start 2009.
I would be interested in seeing your speculative pics.
A great 2009 to all!

2008 Dec 31 12:51 PM

[smlcap:]

Tom.............Speaki... of speculative stocks. I would be interested in your opinion regarding any one, or all of the following.
PSPM (PSPM.PK), IMGG, CBAI, HYDB.
That is if you think they are worth your effort, and would be of interest to the readers. They are health care, or energy/green related companies.

2008 Dec 31 02:07 PM

[mkreisel:]

I would never use ultrashorts to hedge. If I have to hedge, I would sell SPY short directly.

2008 Dec 31 06:35 PM

[Tom Konrad:]

mkreisel: I actually prefer the ultrashorts to a real short for 2 reasons: your losses are limited, and as the market falls, the ultrashort becomes a more powerful hedge, meaning it does you more good in years when you really need it (i.e. 2009.) But to each his own.

One hedge I've used is a short call on index ETFs... the problem is that thsi becomes a weaker hedge as the market falls.


ALL:
Thanks to all the people who put WACG in his place!

2008 Dec 31 10:52 PM

[whisperonth...:]

Bring on the speculative stocks. I'm ready!

Jan 01 08:49 AM

[mc2406:]

Another is Great Lakes Hydro (GLHIF). Good geopraphic assets and excellent payout.

Jan 01 09:47 AM

[rnrinvest:]

Always interested and grateful for others opinions...even if I dont like the way they are presented...speculativ... today is tomorrows blue chips. I sometimes get more out of why someone likes a stock than the pick itself, it helps me or teaches me what to look for so I can better understand how to choose for myself. Mr . Konrad thanks for the time you put into helping the rest of us.

Jan 01 10:11 AM

[rnrinvest:]

P.S. most of already know why the disclaimer is there. Dont let others distract you.

Jan 01 10:12 AM

[Market Folly:]

Tom,

Your hedge of SDS is good only if you plan on keeping it on a daily basis or few a week or two max. The longer you hold SDS, the more your hedge is actually working against you, rather than for you. The ETF resets daily and thus the tracking is not accurate. Go to google finance and pull up a chart of SPY and then over lay a chart of SDS. Theoretically, SDS should be 2x the inverse of SPY performance over the past year. But, was it? Nope. SPY was -36% and SDS only up 23%. There are a ton of articles out there regarding leveraged ETFs as a poor hedge for the long term. Great short term trading vehicles, poor long term hedges. Shorting SPY is the easiest way to hedge.

Jan 02 12:13 PM

[craigger:]

what about NCEN?

Jan 02 12:20 PM

[wind4me:]

Would love you to evaluate A POWER ENERGY (APWR), and include for your speculative group for 2009, China's Largest Wind Turbine manufacturer............. just updated my blog with a $13 price target end of 2009 for APWR

Jan 03 08:06 PM

[wind4me:]

trying to get Tom to cover APWR since APWR is going to be China's biggest Wind Turbine producer and the P/E is 4 right now


On Dec 31 11:33 AM murph3637 wrote:

> Tom,
>
> Thanks for the helpful information. I would like to see your speculative
> picks for 2009. Keep up the good work.

Jan 03 08:32 PM

[fredfs:]

Here is another vote for your list of speculative stocks, but I would also like a third list of value stocks like the one above, but without the etf funds,a nd without the conglomerates - to see the pure plays.

Jan 04 09:37 AM

[Tom Konrad:]

For those of you asking about specific stocks, I occaisionally ask for reader requests on my own website, AltEnergyStocks.com.

You'll need to foolow my writing there to submit your vote, though, since Seeking Alpha does not republish these. In general, I don't read comments here on Seeking Alpha... (i've had a little more time recently because of the holidays), so if you want to get my attention on something, leave the comment on AltEnergyStocks.

I'm currently working on a speculative stocks article.

Jan 06 07:22 PM

[Lang:]

That fact you don't even mention Purespectrum Lighting (PSPM) tells me that you are not even "In the Loop". I would suggest you spend a little time to inform yourself about this company and their products. Unless PSPM is a "total fraud", which I am confident it is not, this is going to be one of the hottest stocks this year.
Lang.

Mar 21 11:34 AM