New Energy Finance - NEX - Weekly Review

Posted by Tim

August 27, 2008

Each week I provide a review of the previous week’s performance of the WilderHill New Energy Global Innovation Index, symbol NEX. This information is provided by New Energy Finance. The NEX consists of about 90 stocks from 20 countries in seven sectors and is the bogey for the PowerShares Global Clean Energy Fund (PBD: 10.7799 -0.0001 -0.00%). These results are for the week ending on Friday.

For the week the NEX gained 2.3% in contrast to the losses for the NASDAQ, off 2.1% and the S&P500, down 0.9%. AMEX Oil gained 3.3% to compare the NEX against traditional energy. Power storage was the top sector, gaining 4.7%. Wind, “renewable-other” and solar were also in positive territory. The worst performing sector was hydrogen and fuel cells, losing 1.6%. Biomass and biofuels were also at the bottom of the sector list losing 1.2%.

Looking at the longer term history of NEX you can see the once hot renewable energy sector has been treading water since falling about 25% from Christmas 2007 until the end of January 2008. At some point, (months, years?) renewables will become a greater percentage of global energy production and this sector should increase in market value. As with all investments, time will tell.

Here are the winners and losers from the NEX for last week:

NEX top gainers since 19 Aug 2008
Suntech Power Holdings STP + 27.4%
Yingli Green Energy YGE + 22.5%
Climate Exchange CLE + 20.5%
LDK Solar LDK + 18.0%
Energy Conversion Devices ENER + 13.9%

NEX top losers since 19 Aug 2008
EnviTec Biogas ETG - 13.4%
Verasun Energy VSE - 13.0%
Medis Technologies MDTL - 12.9%
Babcock & Brown Wind Partners Group BBW - 11.0%
Centrotherm Photovoltaics CTN - 8.1%