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Harris Roen
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Harris Roen is a financial writer with a passion for understanding the economic activity of our interconnected world. His previous experience of over 15 years as a professional portfolio manager helps him ground-truth the hype through independent research and analysis, providing valuable... More
My company:
Swiftwood Press LLC
My blog:
Roen Financial Report
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  • New Company Added To Select Alternative Energy Portfolio

    The Roen Financial Report Paradigm Portfolio is a select group of alternative energy stocks. These companies are considered best positioned to benefit from the economic paradigm toward cleaner energy alternatives shift and away from foreign oil and polluting coal.

    The portfolio has maintained excellent returns, up 44% since inception after accounting for additions, removals, and rebalancing*. One profitable recycling company has been added to the portfolio, and manufacturer in efficiency products is being removed.

    (click to enlarge)

    Returns

    The Paradigm Portfolio remains ahead of the S&P 500 and NASDAQ indices, as shown in the chart above. The portfolio is up 44.2% since its inception on January 1, 2013. This compares to a gain of 35.0% in the S&P 500 and 37.1% in the NASDAQ over the same time period.

    The rise in alternative energy stocks has been broad, with 33 out of 38 companies showing gains. SolarCity (NASDAQ:SCTY) enjoys the best returns, up a stunning 208% after rebalancing. Even the five stocks that are down have only dropped an average of 4.2%.

    (click to enlarge)

    Portfolio Update

    LKQ Corp (NASDAQ:LKQ), the newest addition to the Paradigm Portfolio, is a Chicago-based auto parts dealer that has a large recycling business. For example, LKQ has a tire recycling program that processes over 4,000,000 tires each year. This profitable Chicago-based company has more than 23,000 employees and over $5 billion in annual sales. Its revenues and earnings per share have grown every year since 2007, and the company has a very healthy cash flow. Even though the stock is considered above fair value, we see much upside potential from here for the long-term investor.

    VECO)" target="_blank" rel="nofollow">Veeco Instruments Inc. (VECO), which sells equipment used in the production of light emitting diodes (LEDs), solar panels and other devices, is being removed from the portfolio. The stock shows poor fundamentals so has not fared well in our stock screening process. The Roen Financial Report sees the stock as overvalued at current levels, trading above its fair price channel. We feel it is best to lock in any gains made on this stock when it is above the 30.42 purchase price. CREE)" target="_blank" rel="nofollow">CREE Inc. (CREE) remains in the Paradigm Portfolio as a better investment opportunity in the LED lighting industry.


    *Hypothetical gain from portfolio recommendations. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities on this list. For an explanation of how hypothetical returns are calculated, please see the Returns section under How Investments are Picked in the Roen Financial Report User Guide.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jun 05 2:35 PM | Link | Comment!
  • Green Dividend Yield Investing

    Green Dividend Yield Investing

    Do you want to generate meaningful income from alternative energy stocks and bonds while supporting the growth of clean energy? The Roen Financial Report has released a new report Green Yield Investing: Generating dividends from clean energy stocks and bond. This report offers valuable guidance on adding steady income through clean energy stocks, bonds and mutual funds.

    Written by guest author Dan Quinlan, this timely and informative report will teach you how green dividend yield investing can be a more stable way to invest in alternative energy - a market that has, in many ways, been very volatile and speculative. Learn about three distinct types of emerging income investment opportunities: the "YieldCo", Financing Companies, and Clean Energy Bonds. By reading the report you will discover how these investments work, and how they can enhance your income generating strategy.

    Green Yield Investing details seven specific dividend yield producing investments. The report includes crucial data on ownership, management team, key financials and future prospects. For example, Pattern Energy Group Inc. (NASDAQ:PEGI), a YieldCo that owns and operates six wind power facilities, has a yield of 4.4% and is on target for annual dividend growth of 8-10%.

    Green Yield Investing also describes how investors can benefit from the Roen Financial Report Green Dividend Yield Portfolio. This select group of high-yield alternative energy stocks fall in the "sweet-spot" of dividend yield between 3.5% and 7.0%. Alternative energy companies in the Green Dividend Yield Portfolio are evaluated on many criteria important in determining the quality of dividend yield that a company produces. These criteria include dividend growth, earnings per share, free cash flow, return on equity and yield to debt risk. The 15 companies currently in the Green Dividend Yield Portfolio have yields ranging from 3.5% to 6.2%, with an average yield of 4.4%.

    Whether you are thinking about augmenting your existing dividend yield portfolio, or want to add income investments as part of your savings strategy, Green Yield Investing can help you reach your goals. Download your free copy today at http://www.roenreport.com/green-dividend-yield/

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    May 23 4:14 PM | Link | Comment!
  • Snowballing Returns For Alternative Energy Portfolio

    Investors who bought alternative energy stocks have been nicely rewarded over the past year. Since its inception in January 2013, The Roen Financial Report Paradigm Portfolio has posted extremely robust returns, up 47% after accounting for additions, removals, and rebalancing*.

    (click to enlarge)

    This portfolio contains a carefully filtered list of about 40 alternative energy stocks. These investments are hand-picked from a universe of +/- 250 publically traded companies in energy efficiency, environmental, fuel alternatives, smart grid, solar and wind.

    Returns

    The lift in alternative energy stocks has been broad, with 87% in the Paradigm Portfolio showing gains. More impressively, fully three-quarters of companies are up double digits or greater. In fact, the top ten gainers are up an average of 98%! SolarCity (NASDAQ:SCTY) has the greatest gains by a long shot, up 314% after rebalancing.

    (click to enlarge)

    The bottom performing stock is the waste-to-energy company Covanta Holding Corp (NYSE:CVA). There was a large price drop for Covanta back in October 2013 due to lowered cooperate guidance. Even though Covanta has had flat sales and a dip in earnings, long-term we believe this company's investment story is still intact.

    Portfolio Update

    There are no additions or removals from the Paradigm Portfolio this month. We are monitoring a few companies for removal, including CLARCOR, Inc. (NYSE:CLC). If fair value calculation for this environmental stock becomes less favorable, it will be considered for removal.

    Alternative Energy Investment Outlook

    We still have an overall bullish posture on alternative energy stocks in the medium to long term. There are several positive tailwinds on the sector, one of which is decreasing overall deployment costs for renewables. This is especially true when the cost of developing renewable sources is compared to that of conventional power plants. Also, there are large investments being made in upgrading and modernizing the electric grid, which will greatly benefit distributed energy sources such as wind and solar. This smart grid investment will also benefit companies in the energy efficiency products and services business.

    The biggest tailwind on the sector has been the low price of natural gas, since natural gas is the largest competing fuel source for electric generation. While there has been a spike in natural gas prices as of late, we believe prices of this domestically abundant fuel source will remain relatively low several years out. Though that is good news in terms of carbon emissions, since natural gas is far less polluting than coal or oil, it puts competitive challenges on renewables. Still, on balance alternative energy stocks are likely riding a long-term trend that is here to stay.


    *Hypothetical gain from portfolio recommendations. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities on this list. For an explanation of how hypothetical returns are calculated, please see the Returns section under How Investments are Picked in the Roen Financial Report User Guide.


    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Mar 15 2:59 PM | Link | Comment!
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