sam jones president all season financial renewable energy and clean tech investing

Sam JonesPresident All Season Financial

Renewable Energy and Clean Tech Investing

My Goal : To show you why clean tech is a new

and permanent industry To show you why the opportunity to

invest in this sector is real and timely To show you how and where to put your

money

Agenda The Case for Clean Technology Current Industry Trends vs Stocks Criteria for Investment Selection DIY Best Bets The New Power Fund Business Model

The Case for Clean Tech Triple Bottom Line – Andy Savitz

The Case for Clean Tech

“Time to Wake Up: The Days of Abundant Resources and Falling Prices Are Over Forever”

-Jeremy GranthamApril 2011 GMO Report

The Case for Clean Tech Economic case is rooted in growing

problem of resource scarcity and parabolic global population growth.

Scarcity = rising prices, disruptive shortages, bad behavior (war) and a catalyst for change

The Case for Clean Tech

The Case for Clean Tech

Developing countries are BIG and GROWING consumers of the world’s natural resources.

The Case for Clean Tech

The Case for Clean Tech

Clean Tech (aka Renewable Energy) through substitution effects, efficiency and reduced demand has the potential to shift the supply line (back) to the right and reduce the price of energy.

The Case for Clean Tech

The Case for Clean Tech

The Case for Clean Tech

Environmentally - obvious

A world based on hydrocarbons is messy, dirty, inefficient and expensive

Clean and green will not save the planet but it will give the inhabitants a fighting chance

The Case for Clean Tech Equity - Social Centralize energy and food is inherently

authoritarian Distributed energy is inherently

democratic as it also distributes cost control to the consumer

Clean tech, clean energy is really about empowerment

The Case for Clean Tech Clean Tech/Energy = A Sustainable

Future

Industry Trends Highlights in the last 12 months

17 GW of solar installed in the US in 2010 Energy Secretary Chu’s “Sunshot Initiative”

designed to “drive down the cost of PV aggressively with aid from the white house”

24 states now have RPS policies with mandates of 76GW increase in power generated from renewables by 2025.

Prop 23 was shot down in CA which means RPS guidelines are going to stick.

Industry Trends More Highlights – last decade

Solar CAGR = +39.8% ($2B to $71B) Wind CAGR = +31.2% ($4B to $60B) New Green building standards New Smart Grid communities

Industry Trends

Vs Stock Trends

Clean Energy ETF (PBW) since inception 3/2005 to date.

S&P 500 index

Vs Stock TrendsWind ETF (PWND)

Solar ETF (TAN)

Global Clean Tech ETF (GEX)

Renewable Energy stocks are somewhere around here

Video on Light-weighting

Vs Stock Trends

Clean Tech Sectors Doing Well NOW

• Smart Grid Infrastructure• Utilities that own and distribute clean

energy and are ahead of RPS• Energy Efficiency companies• Efficient Transportation Technologies,

Fuels

Smart Grid – Demand/Response System

Smart Grid Gadgets

Stock Trends

Televent GIT (TLVT)Smart Grid infrastructure+292%

Powershares Clean Energy ETF (PBW)

Vs Stock TrendsABB LTD(ABB) Smart Grid Player +330%

Powershares Clean Energy ETF (PBW)

Vs Stock Trends

Seimans ADR (SI) Smart Grid ++++ 89%

Powershares Clean Energy ETF (PBW)

Vs Stock Trends

American Superconductor –OUCH!Smart Grid Player – 74% since Feb 1st (the day Jim Cramer recommended it!)

Powershares Clean Energy ETF (PBW)

Vs Stock Trends

Avista (AVA) – regulated Utilities that are ahead of the curve and own their own power generation +72%

Powershares Clean Energy ETF (PBW)

Vs Stock Trends

Companhia Energetica ADR (CIG)Brazilian Utility +444% (10.84% annual div)

Powershares Clean Energy ETF (PBW)

Vs Stock TrendsVeeco Instruments (VECO)Energy Efficiency +248%

Powershares Clean Energy ETF (PBW)

Vs. Stock Trends

Johnson Controls (JCI)Energy Efficiency +121%

Powershares Clean Energy ETF (PBW)

Vs. Stock Trends

Westport Innovations(WPRT)CNG Engines

Great companies on potential buys for New Power Fund

Company Symbol YTD % Sector

EnerNoc, Inc ENOC -34% Smart Grid

Comverge COMV -59% Smart Grid

Solazyme SZYM IPO (+22%) Alt Air Fuels

A123 Systems AONE -48% Batteries

Ormat ORA -23% Geothermal

Tata Motors TTM -27% Automotive

Tesla Motors TSLA +3% Automotive

3 Emerging Trends in Clean Technology Lighting- from CFLs to

LEDs Integrated Solar, wind and

natural gas systems Clean aviation fuels

Criteria for Selectionhigh level requirementsA. Does it save money or improve net

revenue within 3-5 years?B. Does it improve quality of life, products,

services?C. Does it accomplish A. and B. without a

heavy dependence on resources, tax rebates or burden on the environment?

D. Competitive advantage is not as critical as proof of business model and growth

Criteria for Selectiontechnical considerations Is the price moving UP? Use 50 and 200 day moving averages

DIY Best PracticesA. Avoid stock picking unless you have

a lot of experienceB. Use Mutual Funds and ETFsC. Be a Trend Follower, own it when it’s

going up! Buy Low, Sell High and monitor all holdings regularly

D. Not more than 20% of total portfolio

DIY Best Practices

ETF OptionsTAN – Solar ETFFAN – Wind ETFPUW – Nat Gas and Clean Energy ETFGEX – International Clean Tech ETF

Mutual Fund FavoritesNew Alternatives Fund (NALFX)Winslow Green Growth (WGGFX)

$ InvestedIn strategy

= Talking Green= Water Monster= Re-Tree

10% of totalFees donated To Education (Sustainability)

Return on Investment

Attract New Investors

Visible presence promoting sustainability

New Power Fund Recent Sponsorships

Talking Green – YVSCWater Monster – YVSCRe-Tree – YVSCDenver Coop Preschool – RecyclingRocky Mountain Institute- National Solutions Council

Takeaways Resource Scarcity is a permanent driver

of the clean tech industry Longer term investors should consider

accumulating renewable energy stocks at these levels.

There are productive investments in Efficiency, Utilities, and smart grid NOW.

Pay attention to trends in the industry and price trends in your investments

Questions? Copy of this presentation? Interest in an investment group/club?