2015 marks
my seventh annual list of ten clean energy
stocks. An equal weighted portfolio of
the ten stocks in each year's list has outperformed my industry benchmark every
year except 2013. 2014 was no exception,
but it was a bittersweet victory in that the model portfolio was slightly down
while the benchmark lost considerably more in a very challenging year for clean
energy stocks.
I will
publish a wrap-up article for the 2014 list in the next couple days, but I
wanted to get the 2015 list out on New Year's day.
Again this
year, I will be providing a high and low target for each stock. These are the range within which I expect the
stocks to end the year. In 2014, three
of the picks violated the downside targets, and none violated the upside targets. I've also included annual dividends and
yield, and Beta, a measure of market risk for US stocks. Low Beta stocks generally perform better than
high Beta stocks in market downturns; the market average Beta is 1.
Finally, I
include a discussion of insider sentiment: company insiders buying or selling
the stock. Since company insiders
usually receive stock as part of their compensation, insider sales are
generally more common than insider purchases.
Hence insider buying is almost always a good sign, and I consider it
particularly important in the small capitalization stocks I favor. These stocks are more likely to be mispriced
than larger, more widely followed stocks for which there is much more
information available to investors.
Company insiders are the ones most likely to see such mispricing. Since insider trading information is much
easier to find for US stocks than foreign stocks, I include links to my sources
of information for insider trading.
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