Ten Clean Energy Stocks For 2014: Out With The Old

Plummeting oil prices, global economic weakness, and the Republicans' win in the US midterms have delivered a triple-whammy to clean energy stocks over the last few months. Many of the stock declines are justified more by headlines than fundamentals. My 10 Clean Energy Stocks for 2014 model portfolio has suffered, especially the riskier growth stocks. The strong dollar has been a further drag on the six foreign stocks.

Since the last update at the start of October, the model portfolio is down 4.6%, for a loss since its December 27th, 2013 inception of 3.8%. In local currency terms, it would have returned a slight gain of 0.5% since inception. For comparison, the most widely held clean energy ETF, PBW, lost 12% since the start of November, and is down 14.9% since the portfolio inception. My broad market benchmark, IWM, is up 2% and 4.2%, respectively.  Individual stock performance is shown in the chart below.

10 for 14 Dec 19 2014.png

Because I believe the declines of most clean energy stocks are not justified by fundamentals, I personally will not be selling any of these stocks at current prices. That said, many clean energy stocks have declined even more drastically than these and now present better values than some in my 2014 list. To keep my 2015 model portfolio manageable, I have to drop some to make room. In this article, I will discuss the four stocks I am considering dropping from next year's model portfolio, and why.  

Individual Stock Notes: Sad To See Them Go

(Current prices as of December 19th, 2014.  The "High Target" and "Low Target" represent my December predictions of the ranges within which these stocks would end the year, barring extraordinary events.)

2. PFB Corporation (TSX:PFB, OTC:PFBOF)
12/26/2013 Price: C$4.85.   Low Target: C$4.  High Target: C$6.  
Annualized Dividend: C$0.24. 
Current Price: C$4.44. YTD Total C$ Return: -3.5%.  YTD Total US$ Return:
 -10.9%

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