by Harris Roen, Editor
Roen Financial Report
May 6, 2013

A solar stock and an environmental company have been added to the Roen Financial Report Paradigm Portfolio this month. One recycling company is being removed.

SunPower Corporation (SPWR) is being added as a result of its strong price momentum and upwards earnings estimate revisions. SPWR is a vertically integrated California-based solar company involved in the manufacture, installation and service of photovoltaics. Its stock has more than tripled in price on large volume since its December lows, up 260%! Sales have been strong, and the stock price is still below levels of around two years ago. We still see upside potential from here. It should be noted, however, that the Roen Financial Report considers SPWR a speculative investment since it has high volatility, and is still in negative earnings territory.

CLARCOR Inc. (CLC) provides air and water filtration products worldwide. This sizeable company has over $1 billion in sales, and over 5,000 employees. It has high quality financials with growing dividends, steady earnings and low debt. CLC is being added this month because it is reasonably priced, trading in the mid-range of what the Roen Financial Report calculates to be fair value.

Kadant Inc. (KAI), a small cap company that supplies equipment for the papermaking and paper recycling industries, is being dropped from the Paradigm Portfolio this month. We still consider this a high-quality company, but it looks overpriced at these levels. We will continue to track KAI for reentry into the portfolio if its price becomes more attractive.

The objective of the Paradigm Portfolio is to pick the highest quality companies that are considered best positioned to benefit from the economic paradigm shift away from foreign oil and polluting coal and towards cleaner energy alternatives. These are leadership companies that play an important role in redefining our energy future.

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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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