10 Clean Energy Stocks for 2010

Today, complacency and greed have returned to the markets, and good values are very hard to come by. The following 10 are mostly the result of culling through our Alternative Energy Stock lists for companies in my favored sectors that look ready for the premature end of the recovery: Companies with strong balance sheets, good cash flow and profitability at not-too-expensive multiples.

Electric Grid & Electricity Storage (30%)

• General Cable (BGC)
• MasTec (MTZ)
• C&D Technologies (CHP)

-or-

• Smart Grid Infrastructure Index Fund (GRID)

Efficient/Clean Transportation (30%)

• New Flyer Industries (NFI-UN.TO, NFYIF.PK)
• Firstgroup PLC (FGP.L)
• Portec Rail Products (PRPX)

-or-

• Powershares Global Progressive Transport ETF (PTRP)

Energy Efficiency (30%)

• Waterfurnace, Inc. (WFI.TO, WFFIF.PK)
• Linear Technology Corp (LLTC)
• Flir Systems, Inc. (FLIR)

Biomass, Waste to Energy, Recycling - 10%

• Waste Management (WM)

Simplified Portfolio

I've provided an alternate, simplified portfolio by substituting the clean energy sector ETFs GRID and PTRP for the stocks in the Electric Grid / Storage and Efficient Transport sectors. This simplified portfolio is better suited for investors who have smaller accounts and want to control transaction costs by making fewer trades. Some investors may also find it difficult to buy London-traded FirstGroup PLC. Such investors may choose to substitute PTRP for FGP.L or for all three efficient transport stocks.

Notes on Stocks

I plan to write about many of these stocks in more depth over the next few months, but here are some links to relatively recent articles for those who want more information before they invest:

• John Petersen on C&D Technologies (December 2009)
• New Flyer Industries update. (October 2009)
• MasTec and General Cable. (June 2009)
• Flir Systems (March 2009)
• Portec Rail Products (February 2009)

Source : Tom Konrad, Seekingalpha, 29/12/09