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?