In today’s Exponential Investor…
- Never be “sick” on a Monday
- Five booming “clean tech” stocks
- The neglected investments in this story
Good morning! Shake off those Monday blues and let’s kick it into gear, rearing for an exciting week ahead.
Oh and you may notice that I’m writing to you on a Monday now. And you’ll find this is your regular broadcasting going forward. Unless it’s a bank holiday or I’m sick, but I’m rarely sick. And never on a Monday, at least unless I’m actually sick, not just because of a “Sunday Session”.
I’m too old for that these days. And besides, a one-year-old who thinks 5:30am is an acceptable waking hour dictates otherwise.
So, you’ll find that I’ll be writing to you early in the week, to get you up to speed and you’ll be hearing from our other contributors later in the week to close out as we head to the weekend.
What I also encourage you to do is to write in to us at email@example.com and let us know what you’re thinking about the markets, opportunities for investors in the UK and areas of interest you think we should dive deeper into.
My vision is to make Exponential Investor all about the best most exciting ideas and investment stories out there for UK investors.
I take the view that the UK markets, right now, are at a point where for long-term investors there is a tremendous amount of opportunity.
And you don’t need to look far for proof it’s already happening…
The big story of 2020 that isn’t a virus
The clean energy and green energy markets are going absolutely bonkers right now.
Just about anything and everything to do with hydrogen, solar, renewables, biofuels, anything that’s clean, green and tech is tearing up the charts.
- ITM Power plc (LSE:ITM) has risen from around 30p to over 280p over the last year. An 833% rise.
- Powerhouse Energy Group plc (LSE:PHE) has risen from around 0.41p to over 3.42p in the last years. A 734% rise.
- Ceres Power plc (LSE:CWR) has risen from 169.5p to over 544p in the last year. A 220% rise.
- AFC Energy plc (LSE:AFC) from around 5.59p to 23.5p in the last year. A 320% rise.
- Velocys plc (LSE:VLS) from 3.63p to up around 16p in the last year. A 340% rise.
That’s an average 489.4% return in the last year from those five stocks. And this is just a handful of the “clean and green crew” lighting up the London Stock Exchange.
It is one of the most exciting stock investment stories in 2020. And from what I can see, there’s no sign of it abating.
The signs that this energy story isn’t slowing down is visible from what’s starting to happen in some of the bigger overseas markets too.
For example, Tesla (NASDAQ:TSLA) is saying it’ll “comfortably” make over 500,000 vehicles this year. Sure it’s not even close to the 10 million Toyota makes each year, but it’s still a step forward.
And Tesla’s stock price (albeit I think wildly overvalued) is still up from around US$200 this time a year ago to over US$1,000 this week. 400% in a year for Tesla!
Now part of that is the insanity of the US markets right now. Part of it is the bigger clean energy story driven by the new younger, more tech savvy and environmentally conscious investor.
They’re already riding these opportunities to profits… are you?
Nikola (NASDAQ:NKLA) – another vehicle maker, with a speciality in hydrogen-electric trucks – 4X4 “trucks” (which I would call a “ute”) have also taken off. They only recently listed in the US via a reverse takeover of an acquisitions company.
You could have bought into that (VectoIQ) with full knowledge of what was coming with the listing of Nikola for just $10. About two weeks ago it broke through US$90.
These are two companies driving (excuse the pun) this clean energy revolution.
And the incumbents are moving on with it too. BMW is still on track to release the iX3 to market this year. It’s finished pre-production testing on the 200th prototype. And all indication is it will hit showrooms imminently.
This will be followed by its i4 and other “I” models in the BMW range. This is just the tip of the iceberg though. We know that Daimler is focusing purely on its electrification drivetrains going forward.
Volkswagen is starting to hit the market with the all new ID.3 this year and the ID.4 is expected shortly after, and quite possibly this year too.
These are all going to be new drivetrain, clean energy, clean technology – high technology connected and “intelligent” cars.
The story you’re not told
This is not something that’s maybe coming in another five or ten years. That was always the problem with this sort of clean tech. This is happening now, and the money is already being made.
So maybe you’ve missed the boat on some massive gains already like ITM, Ceres, AFC, Powerhouse or Velocys. Maybe there’s more room for them to move. But these aren’t the only aspects of this story that create investment opportunities.
I think that one of the areas that is still being ignored, or not really being understood all that well, is other technologies that fit into this clean energy story.
You see what a lot of people neglect is the immense need for “smart” systems to help manage all this high-tech componentry in electric vehicles (EVs) or green energy networks or the processes used to efficiently generate these new energy sources.
I’m talking about the connectivity and the “intelligence” of these systems to be efficient, effective, economically and commercially viable. That comes via software, connectivity to cloud systems, communications and hyper-connectivity network technology and the granddaddy of them all, artificial intelligence.
Don’t underestimate the massive role these technologies play in the clean tech story as well. The gains I reeled off earlier were tasty. But I’m saying for 2020 and into 2021, those will just be the start of it.
AI, 5G, distributed decentralised systems and cloud services are just a few of the investment stories to play out as the British economy and UK-listed stocks kick into another gear as we launch out of the early 2020 crisis.
A lot to be excited about if you’re a UK investor, and all stories and ideas I’ll bring you going forward.
Editor, Exponential Investor