Ten Clean Energy Stocks For 2019: Still Party Time

Brookfield Renewable Energy Partners announced a stock distribution and the creation of a new corporation, Brookfield Renewable Corporation (BEPC). This will allow investors who are not able to invest in limited partnerships like BEP to also invest in the stock, which is designed to have identical distributions to BEP and will be exchangeable for BEP units. The stock price of BEP has been climbing since the announcement in anticipation of the new demand for shares from this new potential class of buyers. After the split, investors should not be surprised if BEP takes advantage of its new, lofty stock price to raise cash in its own secondary offering, bringing the stock price back down from its temporarily lofty level.

Although I think the formation of BEPC will be good for existing investors, I continue to trim my holdings of BEP in anticipation of such a decline.

French auto parts maker Valeo SA (FR.PAVLEEF) reported strong 3rd quarter sales at the end of October, and the stock has been rising since. Sales were up 8% despite an ongoing contraction in auto sales overall. The company excellent performance is largely due to the start of production on projects including vehicle electrification, cameras, and lighting. All-in-all, the company’s plan to leverage its R&D efforts to get its products into more new vehicle models seems to be paying off.Barring a broad market sell-off, I would expect the stock to continue to advance. Given the large increases in most of the stocks in this year’s list, I am going to be searching for a large number of new stocks to add to the 2020 list as I drop the ones that have climbed the most since they are no longer offer compelling valuations. Unless it advances significantly more in December, Valeo seems likely to stay.

Another big winner was Atlantica Yield (AY). Investors generally liked the 3rd quarter earnings report and 1 cent increase in its quarterly dividend to $0.41 at the start of November. Revenue and Cash Available For Distribution (CAFD) continue to advance at a 6-7% rate through the company’s investment in new projects, such as the ATN Expansion 2 transmission project which it closed on during the quarter.

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Disclosure: Long PEGI, CVA, AY, TERP, BEP, EVA, GPP. INGXF, HASI, FR.PA/VLEEF, CWEN-A. 

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Bill Johnson 5 months ago Member's comment

To answer your question, I'd like all of the above.