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Fuelling Obama's push toward clean energy

swon@globeandmail.com

WHAT ARE WE LOOKING FOR?

Opportunities among clean technology and alternative energy stocks.

U.S. president Barack Obama has said he is determined to retool the U.S. energy sector by reducing its reliance on fossil fuels. Capping and reducing carbon dioxide emissions by manufacturers and energy producers are key to his industrial strategy.

TODAY'S SCREEN

We looked at the companies in the PowerShares WilderHill Progressive Energy Portfolio exchange-traded fund (ETF). It is based on the WilderHill Progressive Energy Index composed of companies in transitional energy technologies, such as in improving the use of fossil fuels by progressively reducing carbon and other pollution. This is in contrast to zero carbon plays like solar and wind companies, which can be found in the PowerShares WilderHill Clean Energy Portfolio ETF.

The progressive energy ETF offers a mix of technologies that would certainly benefit from any carbon-cap or carbon tax legislation. Companies in the ETF focus on the following areas: alternative energy, better efficiency, emission reduction, new energy activity, greener utilities, innovative materials and energy storage.

The ETF, whose stock symbol is PUW on the New York Stock Exchange, concentrates mainly on U.S.-listed companies. It fell 14 cents (U.S.) yesterday to close at $18.72 a unit, up from $10.99 last November.

WHAT DID WE FIND?

Because earnings growth is what will drive interest in this sector, we used Thomson to screen for stocks with the strongest estimated earnings growth for the next fiscal year. There are quite a few of them. There are some stocks with price-earnings ratios in the low teens and under.

*****

Earnings estimates for members of the PowerShares WilderHill Progressive Energy Portfolio ETF
CompanyTickerCountryPrice US$ June 151-mo % price chgThis fiscal year EPS $ est. This fiscal year EPS gwth %This year P/ENext fiscal year EPS $ est.Next fiscal year EPS gwth %Next year P/EDividend Yield (%)EPS 5-yr hist gwth
Koninklijke PhilPHG-NNL18.09-2.90.17NA106.41.16582.415.64.110.3
Fuel Tech IncFTEK-QUS10.121.90.05-66.1198.80.33560.030.7NA-1.2
Johnson ControlsJCI-NUS20.9214.60.22-90.695.91.24467.116.92.417.4
PMFG IncPMFG-QUS7.6831.10.09-86.589.00.32276.523.7NA24.2
GrafTech IntlGTI-NUS11.1727.40.34-83.532.41.03197.810.9NA34.3
USEC IncUSU-NUS5.1213.80.30-15.217.30.67124.77.7NA-3.8
HeadwatersHW-NUS4.4416.50.25-57.817.60.55117.28.1NA-4.8
Owens Corning OC-NUS10.98-20.00.38-67.528.90.78105.814.0NA-32.1
Cameco CorpCCJ-NCA25.473.60.95-39.226.91.7382.614.70.736.2
EnersysENS-NUS17.9512.21.08-45.616.71.7966.210.0NA25.8
A-Power Energy APWR-QUS9.97-0.10.9612.210.31.5257.06.6NANA
Eaton ETN-NUS46.342.31.96-71.323.73.0656.415.14.112.0
Southwstn EnergySWN-NUS42.759.51.583.127.12.1637.819.8NA38.6
EnergySolutionsES-NUS8.8612.30.522.117.00.6831.213.01.2NA
McDermott IntlMDR-NUS21.1414.41.51-19.014.01.9227.611.0NA44.8
Corning Inc.GLW-NUS15.4511.31.00-34.915.51.2727.212.21.220.2
Baldor ElecBEZ-NUS24.0012.21.33-38.218.11.6222.014.82.716.7
Covanta HoldingCVA-NUS16.051.80.71-21.022.60.8519.018.9NA-4.5
Esco TechESE-NUS42.5312.21.895.122.52.2318.119.0NA1.8
Computer Prg&SysCPSI-QUS39.3620.51.547.925.51.7815.622.14.017.9
FPL GroupFPL-NUS56.754.24.229.813.54.7512.612.03.413.7
PraxairPX-NUS71.271.14.01-4.617.84.5112.515.82.217.6
Chesapeake EnergCHK-NUS22.5413.02.11-40.510.72.3712.49.51.314.3
National Grid NGG-NGB44.680.73.71-69.612.04.1612.110.76.732.1
CEMIGCIG-NBR13.808.21.19-28.011.61.3311.410.4NA11.3
* All figures in US$
Source: Thomson

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