wind and solar small cap stocksIt probably comes as no real surprise, but the news this week that renewable energy now accounts for more than half of 2014’s new U.S. energy capacity is certainly a milestone. Renewable energy, meaning wind and solar power, continues to grow its share of energy generation and is definitely an industry that is here to stay.

In the Federal Energy Regulatory Commission’s Energy Infrastructure Update, solar and wind energy “combined for 1.83 gigawatts (GW) of the total 3.53 GW installed from January to June,” according to EcoWatch.

The EcoWatch report also noted that solar and wind “combined for 120 of the 180 projects in the first half of the year,” which is down slightly from the 137 projects in the first half of 2013 but higher on a percentage level. Natural gas made up much of the other projected while coal and nuclear “came to a complete halt” with no new projects.

Then on Thursday, July 24, the growing importance of wind power again made the news with a New York Times piece on the sprawling $7 billion Panhandle 1 and Panhandle 2 wind farms in northern Texas, together contributing 400 megawatts to electricity customers “to millions of customers in Dallas-Fort Worth, Austin and Houston.” The Times piece called it “a vast experiement that might hold lessons for the rest of the United States.”

We have covered much of  solar and wind industry small cap stocks over the past few years. Here are two of the better performers, one solar small cap company and another wind power small cap, at least since we have been watching.

Canadian Solar Inc. (Nasdaq:CSIQ), based in Ontario, Canada, manufactures high efficiency solar cells, solar modules, solar power systems and off grid solar power application solutions. The company was upgraded in early July by FBR Capital because “the current stock price gives little benefit for the cash flow generation from the company’s diverse project pipeline beyond the project buildout in Canada…we see Canadian Solar as having built one of the best global project development businesses and pipelines, and markets such as Japan and China offer multiple opportunities to monetize this pipeline in the future.” When we last looked at CSIQ on June 23 it was trading at $29.21 with a market cap of $1.6 billion. It closed July 23 at $28.28 with a market cap of $1.54 billion. Its 52-week trading range is $10.55 – $44.50.

Ming Yang Wind Power Group Limited (NYSE: MY), based in Guangdong Province in The People’s Republic of China, is currently the largest private wind turbine manufacturer in its country and the creators of megawatt-class wind turbines. TheStreet.com on July 22 picked MY as “3 Stocks under $10 to Trade for Breakouts.” The reasoning was a technical reading of its stock chart (http://www.thestreet.com/story/12782710/1/3-stocks-under-10-to-trade-for-breakouts.html?puc=yahoo&cm_ven=YAHOO). Based on that analysis, TheStreet.com suggests it could land in the $3.61-$3.88 range or as high as $4-$4.20. Last May 25, MY closed at $2.44 with a market cap of $299 million. It closed July 23 at $3.24 with a market cap of $395.23 million. Its 52-week trading range is $1.48 – $4.34.

 

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