Green Stocks Keep Chugging Along
New York, New York (NetworkNewsWire) – Now that the Dow has rallied above 20,000 for the first time, we can step back and review the landscape. Few should be surprised that several infrastructure stocks have been the beneficiary of the new Administration’s policies. Conversely, the conventional wisdom was that we should forget green stocks for the next four to eight years, especially with President Trump nominating ExxonMobil (NYSE: XOM) CEO Rex Tillerson to be his Secretary of State. It’s worth taking a look at a variety of equities – such as Source Financial, Inc. (OTCQX: SRCF), Tesla Motors’ (NASDAQ: TSLA) and Methanex Corp. (NASDAQ: MEOH) – to see how they fit into the current playing field.
However, that’s not playing out as expected. In fact, the green sector has some of the best performers since the election, and the recent announcement that Source Financial, Inc. and CSES Group, Inc. are entering a merger transaction to bring CSES’s proprietary refrigerant technology, alltemp, to market, is well-timed.
In addition to being the world’s first Montreal and Kyoto Protocol compliant refrigerant, alltemp delivers impressive energy consumption savings, without any loss in capacity, according to tests conducted in several Fortune 500 company facilities.
CSES plans on increasing manufacturing capacity of alltemp to $100 million per month at its plant in Oregon.
The green sector rally really shouldn’t have caught anybody off guard. After all, one of the high-profile meetings that the Trump transition team hosted at Trump Tower was with Leonardo DiCaprio and Terry Tamminen, the CEO of the Leonardo DiCaprio Foundation, to discuss the importance of green sector jobs and how the sector boosts the economy.
Tamminen stated, “Our conversation focused on how to create millions of secure, American jobs in the construction and operation of commercial and residential clean, renewable energy generation.”
The Trump Administration also hosted Elon Musk, who reportedly stated that the Trump Administration may “be positive on renewables,” and appointed Tesla Motors’ front man to President Trump’s Strategic and Policy forum.
Morgan Stanley analyst Adam Jonas made the following comment concerning Musk’s appointment, “While we cannot explicitly apply a monetary value to this relationship, we believe this level of coordination with the new administration could actually evolve into greater strategic value than with the prior administration.”
Jonas also believes that the relationship could send Tesla (NASDAQ: TSLA) shares 30% higher this year, and said, “To the extent the creation of high-tech manufacturing jobs in the United States is a high priority of the administration, we believe Mr. Musk might have some objectives that could be very much in alignment with those of the Trump administration.”
On top of boosting the “Made in America” agenda, as the green technologies and renewables sector could become a prime employment driver in the U.S., this also points to President Trump’s belief in smart ecology, where green technologies should be able to compete, and win, on other merits.
In other words, the Trump Administration could help boost environmental technologies, which see massive demand increases with higher energy prices.
Ultimately, the green space products must be compelling without any incentives or subsidies. The space will succeed because the products are becoming more affordable and captivating by the day, with or without government incentives.
The environmental, renewable and alternative fuel space is much more than just Tesla. Among top-moving green sector players is the U.S. Alternative Fuel Index, the second-best performing industry over the past month, led by Methanex Corp. (NASDAQ: MEOH), which just reported record quarterly and annual production, as well as the third consecutive quarter of record sales volume. Methanex’s board of directors also declared a quarterly dividend of $0.275 per share that will be payable March 31, 2017, to holders of common shares of record March 17, 2017.
ExxonMobil’s (NYSE: XOM) board of directors also declared a cash dividend last week, but at $0.75 per share on the common stock, payable March 10, 2017, to shareholders of record of common stock at the close of business February 10, 2017. ExxonMobil will release its fourth quarter and full year 2016 financial results January 31.
For more information, please visit: Source Financial, Inc. (SRCF)
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