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Stock Alert: JASO, YGE

by Harris Roen Editor
Roen Financial Report
Tuesday, May 19, 2015
 

Today’s Alert:

JA Solar Holdings Co, Ltd (JASO)
Yingli Green Energy Hold Co (YGE)

Two Chinese solar stocks fall on mixed earnings releases.

 

JA Solar Holdings Co, Ltd (JASO)
More Info
JA Solar drops 6% on a mixed earnings report. Net profits are down 59% from the same quarter last year, but revenues are slightly up. JASO is trading flat for the year, but has gained 10% in the past three months. Press release
Yingli Green Energy Hold Co (YGE)
Yingli Green Energy falls 12% in heavy trading on reporting difficult financials. Revenues are down 61% from last year, and future earnings are in jeopardy due to higher costs of financing solar and reduced government subsidies. YGE is down 25% in 12 months, and is only 16% above its all-time low reached in 2012. SEC filing




IMPORTANT INFORMATION

Individuals involved with the Roen Financial Report and Swiftwood Press LLC do not own or control shares of any companies mentioned in this article. It is also possible that individuals may own or control shares of one or more of the underlying securities contained in the Mutual Funds or Exchange Traded Funds mentioned in this article. Any advice and/or recommendations made in this article are of a general nature and are not to be considered specific investment advice. Individuals should seek advice from their investment professional before making any important financial decisions. See Terms of Use for more information.


Remember to always consult with your investment professional before making important financial decisions.

 
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Stock Alert: DAR

by Harris Roen Editor
Roen Financial Report
Monday, May 18, 2015
 

Today’s Alert:

Darling Ingredients (DAR)

An earnings release creates investor interest in this alternative fuel stock.

 

Darling Ingredients (DAR)
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Biofuel company Darling Ingredients pops 11% on a mixed earnings report. Revenues fall for the quarter, but EPS comes in higher than analyst expectations. DAR is still down 21% for the year, and is 34% below its high reached in 2013. Market Watch




IMPORTANT INFORMATION

Individuals involved with the Roen Financial Report and Swiftwood Press LLC do not own or control shares of any companies mentioned in this article. It is also possible that individuals may own or control shares of one or more of the underlying securities contained in the Mutual Funds or Exchange Traded Funds mentioned in this article. Any advice and/or recommendations made in this article are of a general nature and are not to be considered specific investment advice. Individuals should seek advice from their investment professional before making any important financial decisions. See Terms of Use for more information.


Remember to always consult with your investment professional before making important financial decisions.

 
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Stock Alert: ASYS, DQ, NRG, PLUG, RTK

by Harris Roen, Editor
Roen Financial Report
Tuesday, May 12, 2015
 

Today’s Alert:

Amtech Systems, Inc (ASYS)
Daqo New Energy Corp (DQ)
NRG Energy, Inc (NRG)
Plug Power Inc (PLUG)
Rentech Inc (RTK)

Earnings season has generated movement in these five alternative energy stocks.

 

Amtech Systems, Inc (ASYS)
More Info
Amtech Systems reports a revenue increase thanks to higher solar sales. Revenues are double that of a year ago, and net losses have been cut in half. ASYS is up 22% for the year, though it remains 53% below its highs reached in May 2011. Wall Street Transcript
Daqo New Energy Corp (DQ)
Daqo New Energy Corp rebounds from earlier losses in the week due to slight revenue and profit drops posted in its latest earnings report. This Chinese solar manufacturer is down -36% for the year, but has risen 15% in the past three months. Press release
NRG Energy, Inc (NRG)
NRG Energy is up 6% in three days despite a mixed earnings report. EPS remains positive, but revenues and net income are down. Fiscal year 2015 projections are reaffirmed. NRG has dropped -24% for the year. Business Wire
Plug Power Inc (PLUG)
A tepid earnings report causes fuel cell company Plug Power to sink to a 25-week low, then quickly rise, closing up 5% for the day on large volume. This speculative penny stock is down -35% for the year, but is more than 20 times higher than its lows reached in February 2013. Dakota Financial News
Rentech Inc (RTK)
Biomass fuel producer Rentech gains 7% on large volume despite posting a mixed earnings report. Revenues are down -14% for the quarter, but are up 28% year-over-year. Net income has turned negative, but shows less loss than a year ago. This volatile stock is down 47% for the year, and is 63% below its highs reached in 2013. SEC filing




IMPORTANT INFORMATION

Individuals involved with the Roen Financial Report and Swiftwood Press LLC do not own or control shares of any companies mentioned in this article. It is also possible that individuals may own or control shares of one or more of the underlying securities contained in the Mutual Funds or Exchange Traded Funds mentioned in this article. Any advice and/or recommendations made in this article are of a general nature and are not to be considered specific investment advice. Individuals should seek advice from their investment professional before making any important financial decisions. See Terms of Use for more information.


Remember to always consult with your investment professional before making important financial decisions.

 
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Stock Alert: EMKR, GEVO

by Harris Roen, Editor
Roen Financial Report
Friday, May 8, 2015
 

Today’s Alert:

EMCORE Corporation (EMKR)
Gevo, Inc (GEVO)

Positive news triggers large gains in these alternative energy companies.

 

EMCORE Corporation (EMKR)
More Info
Semiconductor manufacturer EMCORE Corporation gaps up 6% on news of a $45 million stock buyback. EMKR is up 52% of the year, but this volatile stock is still 52% below its highs reached in July 2011. CNN Money
Gevo, Inc (GEVO)
Biofuel company Gevo, Inc. pens an agreement with Alaska Airlines to utilize an alcohol-based renewable jet fuel. GEVO spikes up 123% on historic volume, and is three times higher than its lows reached in February. This speculative stock, however, is still down 62% for the year. The Street




IMPORTANT INFORMATION

Individuals involved with the Roen Financial Report and Swiftwood Press LLC do not own or control shares of any companies mentioned in this article. It is also possible that individuals may own or control shares of one or more of the underlying securities contained in the Mutual Funds or Exchange Traded Funds mentioned in this article. Any advice and/or recommendations made in this article are of a general nature and are not to be considered specific investment advice. Individuals should seek advice from their investment professional before making any important financial decisions. See Terms of Use for more information.


Remember to always consult with your investment professional before making important financial decisions.

 
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Green Dividend Yield Portfolio

by Harris Roen, Editor
Roen Financial Report
May 7, 2015

The Roen Financial Report Green Dividend Yield Portfolio is made up of high-yielding alternative energy companies and YieldCo’s aimed at generating meaningful income for dividend investors. This diversified 18-stock portfolio is carefully picked from a universe of +/- 250 alternative energy companies to include those that fall in the yield “sweet spot”—high enough to be attractive, but not so high as to raise a red flag. Two new companies have recently been added to the Green Dividend Yield Portfolio, and one has been removed.

Yield versus Quality

GDYP_20150501Stocks in the portfolio have yields that range from 2.70% to 5.64%, with an average yield of 4.49%. The lowest yielding stock is Swiss inverter company ABB Ltd (ABB), and the highest is the utility Exelon Corp (EXC).

Not all dividends are created equal, so it is important to consider the quality of the yield as well as the rate. If a company has certain strong financial features, such as return on equity, cash flow and dividend growth, it is much more likely to provide healthy dividends into the future. Companies are therefore categorized into three dividend quality classes: high quality, medium quality and low quality. The better the dividend quality, the better the prospects of a company’s ability to produce or even increase dividends into the future. This goes for YieldCo’s as well, which are discussed in more detail below.

New Dividend Yield Companies Added

Two companies have been added to the portfolio, Mitsui & Co, Ltd, ADR (MITSY) and Helmerich & Payne, Inc (HP).

Mitsui & Co, Ltd, ADR (MITSY)

Mitsui is a Japan-based conglomerate involved in a wide variety of products and services. It operates in several industries, including iron and steel products, energy, transportation and others. Of interest to the Roen Financial Report are Mitsui’s project development and management services for renewable energy and environmental work, including wind power and wastewater treatment. For example, Mitsui recently took a 25% stake in GRI Renewable Industries Group, one of the world’s leading wind manufacturers.

Mitsui has very strong earnings per share, return on equity and cash flow. Mitsui is considered to be trading at below fair value in the 280 price range.

Helmerich & Payne (HP)

The second divided yield stock to be added is Helmerich & Payne (HP), a domestic contract drilling company with a strong focus on natural gas. I realize that many readers may be opposed to having fossil fuel companies in their portfolios, and also recognize the problems associated with its extraction. Having said that, we see natural gas as an important bridge fuel in the transition towards cleaner energy sources. This is particularly true when natural gas is replacing coal in base load electric generation.

Helmerich & Payne has very good dividend growth and earnings per share growth. We believe HP is slightly overvalued now, and that a fair price is more in the mid to upper 60’s.

Removals

Companhia de Saneamento Basico (SBS) is a Brazilian water utility that is being removed from the dividend yield portfolio. Its dividend has risen up to 7.7%, which reaches the point of added risk. Generally speaking, the higher the yield, the more risk the investor is taking on.

YieldCo’s – Fad or Opportunity?

Of the 18 stocks in the Green Dividend Yield Portfolio, three are YieldCo’sBrookfield Renewable Energy Partners LP (BEP), Hannon Armstrong Sustainable Infrastructure (HASI) and Pattern Energy Group Inc (PEGI). These companies own the cash flows from renewable energy projects, and then pass them on to shareholders as dividends.

This type of investment is getting more and more popular. Renewable energy developers find it very favorable to sell their solar arrays and wind farms to YieldCo’s. They see it as one of the best ways to raise capital so they can build more projects. At least two large YieldCo IPOs are in the works—TerraForm Power, a spinoff of SunEdison; and 8point3, a joint venture between First Solar and SunPower Corp.

Though we see YieldCo’s as a very promising development in renewable energy investing, there are risks worth pointing out. Investors have been pouring into these companies, lifting the stock price. As stock prices rise and the dividends per share stays the same, yields have been dropping. It may make sense to wait until the stock price of some of these YieldCos become less elevated.

Another worry is that YieldCo’s only work when they acquire a sizeable and expanding amount of generating assets. Without the ability to produce dividend growth, investors will ultimately look elsewhere.

Conclusion

Since we live in a time when interest rates are about as low as they are going to get, it can be challenging to find descent, stable yield. A diversified portfolio of dividend stocks can be a successful way to add income to a portfolio. To find a complete list of the Roen Financial Report Green Dividend Yield Portfolio companies and rankings, please visit http://www.roenreport.com/premium/green-dividend-yield-portfolio/.




IMPORTANT INFORMATION

Individuals involved with the Roen Financial Report and Swiftwood Press LLC do not own or control shares of any companies mentioned in this article. It is also possible that individuals may own or control shares of one or more of the underlying securities contained in the Mutual Funds or Exchange Traded Funds mentioned in this article. Any advice and/or recommendations made in this article are of a general nature and are not to be considered specific investment advice. Individuals should seek advice from their investment professional before making any important financial decisions. See Terms of Use for more information.


Remember to always consult with your investment professional before making important financial decisions.

 
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