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David Stafford
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Student of markets, enjoys following their course.
My book:
Around the World in Several Pieces
  • PW; An Interesting Addition 0 comments
    May 21, 2013 5:47 PM | about stocks: PW

    PW or Power Reit is for all intents and purposes a group of megalomaniacs bent on taking over the.....just kidding. Power Reit, is an interesting play because its a renewable energy Reit. After perhaps being somewhat confused as to whether or not Solar Capital is just a sort of private investment house, or a green energy tasked investment vehicle per se, I decided to widen my perspective on ways to invest in solar energy. Given that I believe that solar energy is on the cusp of a breakthrough in the next decade or so, I think it would be wise to smuggle some capital away in a good solar investment.

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    From my research, it seems that solar manufacturers are often frowned upon as a solar play because of the slim margins that dictate the m.o. of the industry due to for example, state-sponsored competition from overseas etc(Land of the Dragon). Needless to say this did sort of make sense. Even if these solar-manufacturer stocks could get the sort of news-item boosts, hopefully other solar investments might too.

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    This is when I stumbled upon PW. PW doesn't have a triple-crown winning rate of return, but at close to 4% it sure beats a savings account, and essentially puts one over the supposed inflation rate, so I guess that's a good thing.

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    PW, is also an interesting investment in its own right. Perhaps its not as "sexy" as the corporate governance legend AES, but its still an interesting power play that happens to have an emphasis on renewable energy. As the productivity of solar, and the resources ear-marked for solar begin to increase(aging electricity grid-improvements) we are likely to see their investments perhaps become more valuable due to increase utilization potential, and perhaps storage potential. Hence this is really kind of an interesting investment.

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    Yield aside, it might be a good "macro" "direction-of-the-future" play, sort of like MPW, but obviously not as profitable, since its not medical, but power. Land is barring recent crises, cleary not as cash-cowish as medical services either so, clearly this may be the tortois next to the MPW hare, in more ways than one potentially(investment-lock-up-horizon needed to realize desirable return/lower yield etc), but it still might be a good ace in the hole for the long run, and given todays cost of capital etc, it might not be surprising, if some large investors pile into this sort of investment in the future. Either way, PW, might be an interesting renewable-play-Reit, and hence it might have a place in a well diversified portfolio.

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    PW Sec Filings; http://pwreit.com/?page_id=371

    Themes: Solar, Renewable, PW, Power Reit, Reit, Land Stocks: PW
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