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isaac the terrible
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Independent thinker (Non-partisan when comes to politics and religion).
  • “Not Your Fathers” Energy Portfolio Challenge 1 comment
    Jun 25, 2010 3:16 PM | about stocks: WPRT, CLB, TSL, CZZ

    Whether it be “Peak Oil”, the malevolent antics of Ahmajinedad-Chavez, new regulations aimed at preventing oil spills, global climate change, or the tide of increased oil consumption from the growing middle classes of countries such as India, China, Brazil and Indonesia, it is clear that we’ve got massive challenges to the supply of inexpensive oil.  The global expansion of the past century was fueled by cheap oil, NG and coal.  Crude priced at 15$ a barrel is sooo last century; crude above $50 a barrel (and likely above $100 a barrel) is the word this decade.

     

    Where to invest???- Old big oil such as Exxon (NYSE:XOM), Canadian NG giant EnCana (ECE), coal giant Peabody (NYSE:BTU), oil services etf OIH with the likes of Schlumberger (NYSE:SLB) and Transocean (NYSE:RIG), or tar sands giant Suncor (NYSE:SU)?  Or maybe renewables such as the Danish big boy of wind Vestas (VWS), or FirstSolar (NASDAQ:FSLR) out of Phoenix?

     

    We can add hundreds of names to the list, from different sectors, different continents, and different sides of the CO2 equation.  Maybe go the high dividends route, or maybe high reserves? Onshore vs offshore? Hmmm.....

     

    Here I will lay a small portfolio of companies who have great growth prospects relating to energy production/consumption.  And I challenge the readers to come up with alternatives for others to consider.

     

    I have limited this portfolio/challenge to stocks with greater than $250 million market cap.  Performance of stock price over the past 1 year will be the benchmark for consideration.  To be considered, a stock should have gained at least 25% over the past year- June 26,2009 - June 25, 2010 (Google finance).  The past year is only a snapshot, but the year included both considerable uptrend’s and downtrends, and, it is the most recent year!

     

    Here is my portfolio-

     

    Westport Innovations (NASDAQ:WPRT) out of Vancouver, B.C. is a leader in enabling vehicles to run on NG.  “We develop high-performance, fuel-efficient internal combustion engines and fuel systems for gaseous fuels such as natural gas, and hydrogen.” Their focus is on large vehicles, with strategic alliances with the likes of Cummins, Volvo and Kenworth.

     

    Core Laboratories (NYSE:CLB) of the Netherlands is a world leader in production enhancement and reservoir management services for the global petroleum industry.  Basically, they provide scientific and engineering solutions to help get more oil out new and old oil fields, and they operate in more than 50 countries.

     

    Cosan (NYSE:CZZ) of Brazil is “A producer of crystal sugar (VHP), ...granulated refined sugar, ethanol and electric energy (produced from sugarcane), Cosan is the third largest sugar producer in the world, the fifth largest ethanol producer, and one of the world’s largest ethanol exporters.”  This stock is really a hybrid energy- agriculture play.

     

    Trina Solar (NYSE:TSL) of China is a leader in the photovoltaic market, as reflected in their price performance.  I would consider this a more speculative play than the other three, but the proof is in the pudding.  I would suggest new positions in this stock only after it demonstrates renewed strength.

     

    The following chart compares the one year performance of these 4 stocks with a selection of various other energy stocks.

    Stock

    One Year Price Performance

    WPRT

       96%

    CLB

       76%

    CZZ

       62%

    TSL

       53%

     

     

    XOM

      -15%

    ECA

       24%

    BTU

       43%

    RIG

      -36%

    SLB

        4%

    SU

        7%

    VWS

      -30%

    FSLR

      -25%

    PBR

      -10%

    PSE

       33%

    TOT

      -12%


     




    Disclosure: long WPRT and CLB

    Disclosure: Long WPRT and CLB
    Themes: Energy Stocks: WPRT, CLB, TSL, CZZ
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  • jimp
    , contributor
    Comments (697) | Send Message
     
    Thanks for sharing your ideas. Any thoughts on A-Power (APWR)?
    26 Jun 2010, 02:39 PM Reply Like
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