Sustainable Energy Stocks Track Commodities in May

Includes: DJP, ENER, SPY
by: Mark Henwood

Broader markets, as measured by the S&P 500 (NYSEARCA:SPY) index have weathered the volatile start of May and notched a +0.7% gain as of May 10. In contrast a broad basket of commodities, iPath Dow Jones-AIG Commodity Index Total Return ETN (NYSEARCA:DJP), has fallen by 6.5% this month and now is virtually breakeven for the year with a +.41% return (Bloomberg).

Clean energy funds are behaving like commodities in May. As shown below, our indices are all down similar to commodities with only 5 stocks out of a total 70 stocks showing gains.

(Click chart to enlarge)

I’ve been watching Energy Conversion’s (NASDAQ:ENER) slide for a while so their appearance in the ”Largest Loss” column for Solar caught my eye. Unfortunately a 71% Q1 sales decline and a CEO departure are patterns I’ve seen too often in the last few years. I track coverage terminations now and ENER is inching closer to that joining that group. Other solar stocks with a lot of European exposure could also bear watching.