The Pros Pick 14 Cleantech Stocks For 2014

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 |  Includes: CTRL, DGII, FSLR, HASI, MIXT, PBW, PZD, SBS, SCTY, TRMB
by: Tom Konrad, CFA

Over the last few weeks, I've brought you articles about the top Cleantech stock picks for 2014 from my panel of Cleantech money manager. This article puts them all in one place.

Originally, there were twelve picks. Then, a mis-communication with Rafael Coven, Managing Director at the Cleantech Group, and manager of the index which underlies the Powershares Cleantech ETF (NYSE:PZD) had me listing two more stocks he likes. Through a happy coincidence, that brings the total picks to 14 stocks for 2014.

Here they are, with links to the articles where I wrote about them:

# Company name (with link to article) Ticker Manager Business
1 First Solar NASD:FSLR Garvin Jabush
Green Alpha Advisors
Solar Manufacturer
2 SolarCity NASD:SCTY Solar Installer
3 Digi International NASD: DGII Internet of Things
4 MiX Telematics NYSE:MIXT Rafael Coven
The Cleantech Group
Fleet Management
5 Opus Group Stockholm:OPUS Pollution control
6 Control4 NASD:CTRL Smart Home
7 Trimble Navigation NASD:TRMB Coven(the other picks) Global positioning
8 Kurita Water JP:6370 Water utility
9 Accell Group Amsterdam:ACCEL Jan Schalkwijk
JPS Global Investments
10 Companhia de Saneamento Basico do Estado de Sao Paolo NYSE:SBS Water utility
11 Alter NRG Corp TSX:NRG Waste-to-energy
12 Renewable Energy Trade Board OTCPK:EBODF Shawn Kravetz
Esplanade Capital LLC
Holding Co. (solar)
13 Meyer Burger Swiss:MBTN Solar equipment
14 Hannon Armstrong Sustainable Infr. NYSE:HASI Finance
Click to enlarge

It's worth mentioning that several of these stocks have advanced significantly since my panel recommended them on December 12th.

Most notably, Renewable Energy Trade Board (OTCPK:EBODF) has shot up 210%, most likely as a result of my article. The stock is extremely illiquid, and any added demand can move it a long way. I suspect that, despite Kravetz' warning that it is "It is tiny and thinly traded," readers have not been buying with caution. Yes, the company is still well below his low valuation estimate of $12, but it does not take much to send a stock this thinly traded up or down an incredible amount. If you're interested in this company, I strongly suggest you wait a month or two until interest caused by these articles has died down, and then buy cautiously, using limit orders.

Below is a chart showing how all the picks and publicly traded funds managed by these experts have performed since December 12th. I've also included The Powershares Wilderhill Clean Energy ETF (NYSE:PBW), which tracks the Wilderhill Clean Energy Index managed by Dr. Robert Wilder. Dr. Wilder is on my panel but did not give me any picks because, as an indexer, he thinks it's inappropriate for him to try and pick winners.

Click to enlarge

While EBODF was probably boosted by my article, Coven's picks Opus Group and MiX Telematics may have gotten a boost when he added them to The Cleantech Index, which he manages, on December 26th. This means that PZD, the ETF which tracks the index, needs to buy them.

Conclusion

Part of the reason I asked my panel to pick their stocks in December is to use their ideas myself. This year, I included Mix Telematics from Coven, and included it in my seventh annual list of Ten Clean Energy Stocks for 2014. Also included are Kravetz's Hannon Armstrong and Schalkwijk's Accell Group. Accell is a holding of the hedge fund I co-manage with Schalkwijk.

As for Hannon Armstrong, I've been writing about it since its IPO in May, but the timing seems to be favoring Kravetz, since it's gained $1.50 in the two weeks between when he and I picked it. But I shouldn't complain: Kravetz had the top pick of anyone on my panel last year, and this year he picked my largest single holding.

I'm looking forward to 2014.

An erlier version of this article was first published on the author's Forbes.com blog, Green Stocks on January 2nd and then on AltEnergyStocks.com.

Disclosure: I am long MIXT, ACCEL, SBS, and HASI.

DISCLAIMER: Past performance is not a guarantee or a reliable indicator of future results. This article contains the current opinions of the author and such opinions are subject to change without notice. This article has been distributed for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.