PODCAST: Cleantech Stocks, Carbon ETF to Buy Now

Cleantech Stocks, Carbon ETF to Buy Now. Covering Brookfield Renewable, Vestas Wind Systems, Amyris Inc., Plug Power, ChargePoint, Tesla, NextEra Energy, Enphase Energy, Ford Motor Company, KraneShares Global Carbon ETF, California Carbon Allowance ETF, and Series B Carbon ETF. Carbon ETFs represent a potentially profitable and exciting new investment category for ethical and sustainable investors

PODCAST: Cleantech Stocks, Carbon ETF to Buy Now

Transcript & Links, Episode 73, December 17, 2021

Hello, Ron Robins here. Welcome to podcast episode 73 published on December 17, titled “Cleantech Stocks, Carbon ETF to Buy Now.” — and presented by Investing for the Soul. investingforthesoul.com is your site for vital global ethical and sustainable investing news, commentary, information, and resources.

Remember that you can find a full transcript, links to content – including stock symbols, quotes, and bonus material – at this episode’s podcast page located at investingforthesoul.com/podcasts.

Now, just a reminder. I do not evaluate any of the stocks or funds mentioned in this podcast. Furthermore, if you’re concerned about the ESG and sustainability ratings of any stock or fund included in this podcast, check your broker’s online site for such information.

If your broker doesn’t have this information, signup for free with Morningstar and you can gain access to company and fund ESG-sustainability ratings. Please note, I receive no compensation from Morningstar or anyone else covered in these podcasts.

Also, if any terms are unfamiliar to you, simply Google them.

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1. Cleantech Stocks, Carbon ETF to Buy Now

So, let’s begin this podcast with this great article titled Cleantech Stocks to Buy Now with Global Climate Change Coming into Focus by Pete Johnson, It appeared on the investmentu.com site. I’ll first mention the company, then follow with brief comments by Mr. Johnson on that stock.

“No. 8 Brookfield Renewable (NYSE: BEP) Industry: Renewable Energy Market Cap: 9.3B 1-Yr Revenue Growth: 11%

Brookfield Renewable is an excellent play if you’re looking to invest in cleantech stocks but don’t know where to start… It has holdings in…

Wind Energy Solar Energy Hydroelectric Power Storage Facilities

What’s more, the company pays a generous dividend, currently yielding 3.59% annually.

No. 7 Vestas Wind Systems (OTC: VWDRY) Industry: Wind Turbines Market Cap: 31.1B 1-Yr Revenue Growth: 16% (EUR)

The Denmark-based turbine supplier is a leader in the wind power market… the wind power market is expecting to grow 11.3% annually over the next few years.

No. 6 Amyris Inc. (Nasdaq: AMRS) Industry: Renewable Chemicals Market Cap: 1.75B 1-Yr Revenue Growth: 40%

The company makes clean health and beauty consumer products… The biotech leader is changing the way we approach consumer needs. That said, Amyris will be one of the top cleantech stocks to watch going forward.

No. 5 Plug Power (Nasdaq: PLUG) Industry: Hydrogen Fuel Cells Market Cap: 19.2B 1-Yr Revenue Growth: 35%

Plug Power is the leader in hydrogen technology… Plug Power’s fuel cells are used to power trucks, improve material handling and stationary power.

Despite a loss in the 4th quarter, Plug has achieved double-digit year-over-year (YOY) revenue growth in 7 of its last 8 quarters… Partnerships with premium brands like Amazon, BWW and Walmart show it’s the real deal.

No. 4 ChargePoint (NYSE: CHPT) Industry: EV Charging Stations Market Cap: 7B 1-Yr Revenue Growth: 60%

As the world’s largest EV charging network, ChargePoint is looking to capitalize on the growing EV demand. Even more, the company offers an open network. This means anyone can use it.

No. 3 Tesla (Nasdaq: TSLA) Industry: Electric Vehicles Market Cap: 1T 1-Yr Revenue Growth: 57%

Despite competition starting to gain traction, Tesla is still crushing its targets and breaking records along the way…

it shows demand for EVs heating up and particularly for Tesla vehicles…

No. 2 NextEra Energy (NYSE: NEE) Industry: Utility Market Cap: 173.8B 1-Yr Revenue Growth: (-37%)

NextEra Energy is the largest utility company… it’s also the world’s largest producer of wind and solar…

NextEra makes an attractive dividend stock… its 25 straight years of increased payouts make it a dividend aristocrat…

NextEra is one of the top cleantech stocks over the next ten years.

No. 1 Enphase Energy (Nasdaq: ENPH) Industry: Semiconductors (Solar Energy) Market Cap: 29B 1-Yr Revenue Growth: 97%

Rounding out the best cleantech stocks is the microinverter supplier, Enphase… Enphase units combine solar, battery and software to power residential homes. At the same time, they are making it easy for users to sell back the energy they are not using. The smart technology is driving the Enphase stock to new heights, now up over 2,000% in the past two years…

With 48% compound revenue growth in the past 20 quarters, look for Enphase to continue its dominant run.” End quotes.

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2. Cleantech Stocks, Carbon ETF to Buy Now

Now, this next article titled 3 Renewable Energy Stocks To Keep An Eye On Next Year was found on a site covering the oil industry, oilprice.com. It’s written by Alex Kimani. Here are some of his comments. Quote.

“#1. Plug Power Inc. (Yes, again!) (NASDAQ: PLUG)

       Industry: Alternative Energy

       Market Cap: $21.1B

Plug Power has managed to remain in Wall Street's good books--and for good reason.

First off, the company raised its revenue guidance for 2022 given acquisitions and commercial traction to $900 Million–$925 Million…

Citigroup analyst P.J. Juvekar maintains his Buy rating and $35 price target after visiting the company's facilities and coming away impressed with the company's plans to expand its capabilities to make hydrogen gas while also lowering costs…

Morgan Stanley analyst Stephen Byrd has maintained an Overweight rating and $43 price target on Plug.

Raymond James analyst Joseph Spak has reiterated his Outperform rating while raising the price target to $48 from $40, saying Plug is transforming into a one-stop, turnkey hydrogen solution whose rich valuation is justified, given the significant growth potential.

Plug Power and South Korea conglomerate corporation SK Group have announced they have formed a joint venture to build a gigafactory with mass capacity for hydrogen fuel cells and electrolyzer systems in South Korea by 2024…

Plug Power has also struck a green hydrogen deal with Airbus (OTCPK: EADSF, OTCPK: EADSY) in a landmark study to decarbonize air travel.

#2. Ford Motor Company (NYSE: F)

       Industry: Automotive

       Market Cap: $79.2B As a member of the 'Big 3' Detroit automakers, Ford Motor Co is a controversial pick on a list dedicated to clean energy plays. But Ford's EV exploits are worth looking into because the company has set out one of the most comprehensive EV roadmaps by a legacy automaker. Indeed, Ford's impressive 123% YTD gain is largely due to the company's EV upside. 

Morgan Stanley forecast Ford's EV unit sales will reach 1.24M units by FY30 to represent 34% of volume. Ford has already overtaken General Motors (NYSE: GM) in EV sales in the United States.

Further, Ford has already taken 200K reservations for its hotly anticipated F-150 Lightning pickup truck, and plans to start converting reservations to full orders in January 2022, thus beating General Motors' Chevy Silverado to the market by a full year. The F-150 Lightning pickup truck is an all-electric version of Ford's best-selling passenger vehicle in the market, the F-150.

Morgan Stanley values Ford's EV/AV and Mobility businesses at nearly $12 per share, which at the moment is roughly 100% of its lowly price target of $12. Meanwhile, Credit Suisse is more positive on the Detroit automaker with a price target of $20…

Ford CEO James Farley… has talked up the auto maker's 12% stake in EV truck and van maker Rivian (NASDAQ: RIVN), noting that the firm's well-received IPO ‘gives us lots of optionality’ about what to do with its investment.

#3. Enphase Energy Inc. (Yes again!) (NASDAQ: ENPH)

       Industry: Renewable Energy

       Market Cap: $30.4B

Enphase Energy Inc. is a Fremont, California-based company that designs and manufactures software-driven home energy solutions used in solar generation, home energy storage and web-based monitoring and control.

Enphase is among the leading solar and alternative energy names that have been surging following the passage of the Build Back Better bill in the U.S. House…

Last month, Wells Fargo initiated coverage on Enphase with an Outperform rating. Wells pointed to two key competitive advantages that should support growth visibility: regulation NEC 2017, which creates barriers to entry in the U.S. market; and product innovation and software technology, which provide customers with an intelligent home energy management system.” End quotes.

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3. Cleantech Stocks, Carbon ETF to Buy Now

Now a new investment class for ethical and sustainable investors: carbon credits. This article is fascinating! It’s titled KRBN ETF Is Crushing the Market – Buy It Now. By Michael A. Robinson.

Here is some of what Mr. Robinson has to say. Quote.

“Every company that emits carbon into the atmosphere has to buy credits to do so from companies that remove carbon from the atmosphere.

There's one fund that is taking incredible advantage of this system, and they're starting to see huge gains. That fund is the KraneShares Global Carbon ETF (NYSEArca: KRBN), and I'm excited to introduce you to it…

The current price for a ton of carbon dioxide is about $40.52. Meanwhile, estimates from the United Nations, the Bank of England, the White House, and Bloomberg New Energy Finance on what price it would take to achieve net zero carbon range from $100/ton to $147/ton…

What KraneShares Global Carbon ETF does is ‘go long’ on these credits - it buys and holds carbon credit futures, making money as their price goes up…

Between September 2014 and this past October, carbon credits have actually outperformed stocks, bonds, commodities, and real estate…

It isn't the only player in this space, of course. KraneShares has another fund, the California Carbon Allowance ETF (NYSEArca: KCCA), and iPath has its Series B Carbon ETF (NYSEArca: GRN)…

For my money, KraneShares Global Carbon ETF is the ideal move to make, and proof positive that investing in our green-tech-filled future can be very profitable.” End quotes.

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Honorable Mentions

These are ethical and sustainable investment recommendations worth reading about, but I hadn’t the space to review them in this podcast.

1) Title My Top Renewable Energy Stock to Buy in December by Matthew DiLallo. It appeared on fool.com. Quote “Clearway believes it can expand its dividend per share at the upper end of its 5% to 8% annual growth range through 2026.” End quote.

2) Title 1 Infrastructure Stock That Could Be a Great Investment for Decades by Matthew Frankel and Jason Hall. Also found on fool.com. Quote “Jason Hall thinks Brookfield Infrastructure (BIP) could be a great investment for not only the next several years but for decades to come.” End quote.

3) Title An ESG Fund Changes the World, One Company at a Time by Lewis Braham. From barrons.com. Quote “Green Century Balanced fund’s (ticker: GCBLX)… In the past three years, the fund has beaten 89% of its peers in Morningstar’s 50% to 70% Equity Allocation category, with a 16.8% annualized return versus the category’s 13.5%.” End quote.

4) Title This May Be The Only Value Fund Focused On Impact Investing by Jacob Wolinsky. Forbes.com. Quote “Lyrical Asset Management's Global Impact Value Equity Strategy (GIVES) may be the only true value impact fund in the world.” End quote.

In the UK

1) Title The top 10 most-popular ETFs of 2021 by Interactive Investor. On ii.co.uk. Most of the ten are climate-related!

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Ending Comment

Well, these are my top news stories with their stock and fund tips -- for this podcast: “Cleantech Stocks, Carbon ETF to Buy Now.”

To get all the links, stock symbols, or to read the transcript of this podcast -- and more -- go to investingforthesoul.com/podcasts and scroll down to this episode.

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Stay well and healthy—and conscious about the ethical and sustainable values of your investments!

Thank you for listening.

Happy holidays everyone. And may 2022 be a year of renewal and uplifting of spirit for us all.

Talk to you next on January 14, 2022. I’m taking a bit of a break so there’ll be no podcast on December 31!

Bye for now.

© 2021 Ron Robins, Investing for the Soul.