Author: Mark Henwood
Emerging Markets, EAFA, and S&P500 all fell more than 2% this week. With the exception of Solar, all Camino’s PurePlay followed the markets downward.
Solar's strong showing came on a variety of positive news for the sector. We learned of potential involvement of large player (IBM (IBM)and Intel (INTC)), supply deals (ESLR) and potential production expansions in thin film. There was no negative news on the regulatory front. All of this translated into a 4.5% advance narrowing its YTD loss to 20.2%
After writing this column for 15 weeks I'm starting to better understand the key price drivers for the strategies. In Solar I see investors driving prices down on potential reductions in governmental support and concerns on silicon supply. Orders and realized growth drive prices up.
In Renewable Electricity power solicitations and resulting equipment orders drive stocks up, project problems drive prices down.
In Biofuels, prices react to the fuel margin, as measured by futures contract prices, and actual earnings. In Fuel Cells its progress against business plans with any slippage drives prices down.
Mark is the founder of Camino Energy, an information provider specializing in globally traded sustainable energy stocks. He also is an investor in sustainable energy stocks and has positions in Renewable Electricity.