New Energy Finance - NEX - Weekly Review
Each week I recap the results of the WilderHill New Energy Global Innovation Index, symbol NEX, and published by New Energy Finance Ltd. The NEX is the tracking index for the PowerShares Global Clean Energy Portfolio ETF (PBD: 14.70 -0.35 -2.33%).
Last week the NEX accelerated in its free fall, losing 27.4%. The NASDAQ and S&P 500 were also off sharply, down 14.9% and 13.9%. Amex Oil shed 19.3%. The once high flying renewable energy sector has had its wings clipped. The current index value of 152.3 is 45% below the Sept. 30 closing value of 276.75. Unbelievable! All of the sectors in the index fell heavily, led by solar energy, off 34.1% and wind energy, down 31.8%. Power storage managed to lose “only” 19.4% as the best performer of a bad lot.
I really cannot foresee what will stimulate interest in this sector again. Alternative energy sources are a lower priority as traditional energy prices fall and saving the environment seems to be taking a back seat to saving jobs and the economy. This is a shame because the renewable energy sector offers many benefits as it takes up more of the planet’s energy load.
As you can see from the chart below, even 4 out of 5 of the best performing stocks in the index lost money last week:
NEX top gainers since 21/10/08
Theolia TEO + 0.9%
BKW FMB Energie BKWN - 1.1%
International Rectifier IRF - 2.5%
Covanta Holding CVA - 2.7%
Zhejiang Yankon Group 600261 - 3.6%
NEX top losers since 21/10/08
VeraSun Energy VSE - 57.4%
Suntech Power Holdings STP - 47.4%
Vestas Wind Systems VWS - 47.3%
Renewable Energy Corp REC - 42.0%
JA Solar Holdings JASO - 41.7%
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