New Energy Index -NEX- Weekly Update
Time again for the weekly New Energy Index update. The NEX is the bogey for this site’s 20 Stock Portfolio component: the PowerShares Global Clean Energy Fund (PBD: 25.85 -0.288 -1.10%). I have been looking forward to receiving last week’s data from NEX since I read this article at Seeking Alpha. The article, dated 2/24, discussed significant weekly declines for the sustainable energy sector.
The NEX had a better, or maybe less bad week, down 0.7%. The solar sector of the index declined 2.2% vs. -5.3% quoted at Seeking Alpha. Power storage was the top sector for the NEX, up 7.4%. I think this data is an indication the broad global focus of NEX and PBD can give superior long term results. Here are the winners and losers (from the NEX companies) for last week:
NEX top gainers since 19/02/08
Itron ITRI + 22.4%
Japan Wind Development 2766 + 18.4%
Conergy CGY + 15.8%
Maxwell Technologies MXWL + 15.7%
Capstone Turbine CPST + 14.8%
NEX top losers since 19/02/08
Suntech Power Holdings STP - 23.9%
Aventine Renewable Energy Holdings AVR - 22.4%
Verenium VRNM - 18.1%
EnerNoc ENOC - 17.9%
Solaria Energia y Medio Ambiente SLR - 15.6%
As noted last week, valuations on some of the stocks in this sector had reached outrageous multiples. The solar sector in particular is up against increasing competition where only the most efficient will survive. There have been several articles on Seeking Alpha recently concerning this sector. I believe the renewable energy sector has tremendous growth prospects but picking the successful individual stocks is problematic, so I am in favor of using the ETF approach like (PBD: 25.85 -0.288 -1.10%).
Note: I currently do not have a position in PBD.
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