by Harris Roen, Editor
Roen Financial Report
July 2, 2013

The Paradigm Portfolio is a select list of green investments that are considered best positioned to benefit from the energy paradigm shift away from foreign oil and polluting coal and towards cleaner power alternatives. These leadership companies are culled from a list of around 250 alternative energy stocks which play an important role in redefining our energy future. Average returns of the 35-40 companies that make up the Paradigm Portfolio are up 19% since the beginning of 2013.

Paradigm Portfolio Returns

Three quarter of the stocks are trading in positive territory since entering the portfolio. There is a wide range of returns in individual companies, though, since the Paradigm Portfolio was started at the beginning of 2013.

The best gainer by far is Solar City, more than tripling in price since the new year. Though SolarCity has given up about 15% of its gains from peaks back in May, investors still believe this innovative energy stock will dominate the growing solar installation market. Trimble has had the largest loss, down 56%. Despite a descent earnings report released the end of March, future guidance by the company was disappointing, with earnings per share projected to be half of what analysts were expecting for the second quarter of 2013.

Portfolio Update

One company is being added to the Paradigm Portfolio, and one is being removed. Entering the portfolio is IXYS Corporation (IXYS). This mid-size Silicon Valley based company develops products that convert power into useable electricity. Though it manufactures many products, IXYS has a strong presence in supplying power conversion electronics to the wind and solar industries. Despite the fact that IXYS has a high P/E, it is still considered undervalued by the Roen Financial Report.

GT Advanced Technologies (GTAT) is being removed from the portfolio, after posting a nice 30% gain since its entry at the beginning of 2013. Its negative free cash flow is concerning, as is its drop to negative earnings in the past two quarters. It also has relatively high debt, and is considered overvalued by the Roen Financial Report.

To become better informed as an energy investor, click here to find out about the Paradigm Portfolio, including access to a complete list of stocks and detailed company reports.

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IMPORTANT INFORMATION

Individuals involved with the Roen Financial Report and Swiftwood Press LLC do not own or control shares of any companies mentioned in this article. It is also possible that individuals may own or control shares of one or more of the underlying securities contained in the Mutual Funds or Exchange Traded Funds mentioned in this article. Any advice and/or recommendations made in this article are of a general nature and are not to be considered specific investment advice. Individuals should seek advice from their investment professional before making any important financial decisions. See Terms of Use for more information.

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Remember to always consult with your investment professional before making important financial decisions.