Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
NEE, DUK - >>> 3 Dividend-Paying Energy Stocks to Buy at a Discount
by Reuben Gregg Brewer
Motley Fool
March 29, 2024
https://finance.yahoo.com/news/3-dividend-paying-energy-stocks-082600370.html
The utility sector is generally one of the more boring segments of the broader energy industry, but that doesn't mean it is always uneventful. In fact, rising interest rates have resulted in Wall Street shunning utility stocks. While there are some good reasons for that, it has opened up an opportunity for long-term income investors to buy reliable dividend stocks like NextEra Energy (NYSE: NEE), Duke Energy (NYSE: DUK), and Black Hills Corporation (NYSE: BKH). Here's a look at each of these energy specialists.
A quick primer on an industry downturn
There's no way to hide the fact that utility stocks are in the dumps today. As the chart below clearly shows, the utility sector, using Vanguard Utilities ETF (NYSEMKT: VPU) as a proxy, has been heading lower while the S&P 500 index has been moving higher. What's been going on? The big issue is that interest rates have been on the rise. That poses two problems for utility stocks.
First, other income options, like certificates of deposit (CDs), are more competitive with some stocks, like utilities, that are known for producing income. If you can get a 5% or so yield from a super-safe CD, why take on the risk of owning a similarly yielding stock? The opportunity for dividend growth is one (very good) reason, but sometimes investors are too short-term focused. As a result, money has shifted out of the utility sector.
Second, and probably more important to consider, is that utilities tend to be capital-intensive companies. That means debt is often a key part of the capital structure. Rising interest rates simply make it more expensive to do business. This will probably hurt near-term financial results throughout the sector. It makes some sense that investors are worried about that. However, these are largely regulated businesses. That means that the government has to approve capital spending plans and rate structures, balancing the need for profit against cost and reliability for customers. Higher rates will, eventually, be taken into consideration in that equation. So, over the long term, slow-and-steady growth is still the likely outcome.
In the end, then, the current industry malaise is probably a long-term opportunity for dividend investors.
Three solid options for dividend investors
NextEra Energy is going to be most attractive to dividend growth investors. Although it owns one of the largest regulated utility operations in the United States (Florida Power & Light), about 30% of its business is dedicated to a rapidly expanding renewable power business. That combination has resulted in annual dividend growth of around 10% on average over the past decade. Management currently believes it can increase the dividend at around that same rate through at least 2026.
That's a pretty astounding pace of dividend growth in the utility sector, which explains why NextEra Energy has long been afforded a premium valuation. But thanks to the current industry downturn, the yield is near a 10-year high at about 3.3%. While that's below the 3.5% industry average, it is still a great opportunity for dividend growth investors; the dividend has been raised annually for 29 consecutive years.
Duke Energy is a bit more conventional. While it is also one of the largest utility companies in the United States, it doesn't have a fast-growing clean energy business like NextEra Energy does. In fact, Duke recently agreed to sell the non-regulated clean energy business it did own. Effectively, it is doubling down on regulated assets, which will increasingly require clean energy investments to be made. But making those investments within the regulated framework will provide more consistent returns. The company has increased its dividend annually for 19 consecutive years and the dividend yield is toward the high end its range over the past decade at 4.3%. Note that the yield is notably above the industry average.
The last utility up is tiny Black Hills Corporation, which has a yield of just about 5%. Like the other two utilities here, that's toward the high end of the range over the past decade. Before moving on to the big reason to like Black Hills, it is worth highlighting just how small it is. This utility's market cap is $3.5 billion, which compares to $72 billion for Duke and a whopping $126 billion for NextEra. That's why it is all the more impressive to see that, of the three, Black Hills is the only one that happens to be a Dividend King, with 55 years' worth of annual dividend increases behind it. It is something of a hidden gem in the utility sector. Like Duke, it is a simple regulated utility, but if you appreciate dividend consistency, it wins hands-down.
There are good options in this out-of-favor industry
Wall Street is particularly downbeat on the utility sector today and that is creating long-term opportunity for dividend investors. You just have to be willing to go against the grain and buy when others are selling. However, if you take the time, you'll find that there are a lot of options in the sector, including dividend-growth stocks like NextEra, boring and reliable giants like Duke, and even Dividend Kings like Black Hills. If you like dividends, don't let this utility sell-off pass you buy without at least doing a deep dive into the space.
<<<
---
NEE, DUK - >>> 3 Dividend-Paying Energy Stocks to Buy at a Discount
by Reuben Gregg Brewer
Motley Fool
March 29, 2024
https://finance.yahoo.com/news/3-dividend-paying-energy-stocks-082600370.html
The utility sector is generally one of the more boring segments of the broader energy industry, but that doesn't mean it is always uneventful. In fact, rising interest rates have resulted in Wall Street shunning utility stocks. While there are some good reasons for that, it has opened up an opportunity for long-term income investors to buy reliable dividend stocks like NextEra Energy (NYSE: NEE), Duke Energy (NYSE: DUK), and Black Hills Corporation (NYSE: BKH). Here's a look at each of these energy specialists.
A quick primer on an industry downturn
There's no way to hide the fact that utility stocks are in the dumps today. As the chart below clearly shows, the utility sector, using Vanguard Utilities ETF (NYSEMKT: VPU) as a proxy, has been heading lower while the S&P 500 index has been moving higher. What's been going on? The big issue is that interest rates have been on the rise. That poses two problems for utility stocks.
First, other income options, like certificates of deposit (CDs), are more competitive with some stocks, like utilities, that are known for producing income. If you can get a 5% or so yield from a super-safe CD, why take on the risk of owning a similarly yielding stock? The opportunity for dividend growth is one (very good) reason, but sometimes investors are too short-term focused. As a result, money has shifted out of the utility sector.
Second, and probably more important to consider, is that utilities tend to be capital-intensive companies. That means debt is often a key part of the capital structure. Rising interest rates simply make it more expensive to do business. This will probably hurt near-term financial results throughout the sector. It makes some sense that investors are worried about that. However, these are largely regulated businesses. That means that the government has to approve capital spending plans and rate structures, balancing the need for profit against cost and reliability for customers. Higher rates will, eventually, be taken into consideration in that equation. So, over the long term, slow-and-steady growth is still the likely outcome.
In the end, then, the current industry malaise is probably a long-term opportunity for dividend investors.
Three solid options for dividend investors
NextEra Energy is going to be most attractive to dividend growth investors. Although it owns one of the largest regulated utility operations in the United States (Florida Power & Light), about 30% of its business is dedicated to a rapidly expanding renewable power business. That combination has resulted in annual dividend growth of around 10% on average over the past decade. Management currently believes it can increase the dividend at around that same rate through at least 2026.
That's a pretty astounding pace of dividend growth in the utility sector, which explains why NextEra Energy has long been afforded a premium valuation. But thanks to the current industry downturn, the yield is near a 10-year high at about 3.3%. While that's below the 3.5% industry average, it is still a great opportunity for dividend growth investors; the dividend has been raised annually for 29 consecutive years.
Duke Energy is a bit more conventional. While it is also one of the largest utility companies in the United States, it doesn't have a fast-growing clean energy business like NextEra Energy does. In fact, Duke recently agreed to sell the non-regulated clean energy business it did own. Effectively, it is doubling down on regulated assets, which will increasingly require clean energy investments to be made. But making those investments within the regulated framework will provide more consistent returns. The company has increased its dividend annually for 19 consecutive years and the dividend yield is toward the high end its range over the past decade at 4.3%. Note that the yield is notably above the industry average.
The last utility up is tiny Black Hills Corporation, which has a yield of just about 5%. Like the other two utilities here, that's toward the high end of the range over the past decade. Before moving on to the big reason to like Black Hills, it is worth highlighting just how small it is. This utility's market cap is $3.5 billion, which compares to $72 billion for Duke and a whopping $126 billion for NextEra. That's why it is all the more impressive to see that, of the three, Black Hills is the only one that happens to be a Dividend King, with 55 years' worth of annual dividend increases behind it. It is something of a hidden gem in the utility sector. Like Duke, it is a simple regulated utility, but if you appreciate dividend consistency, it wins hands-down.
There are good options in this out-of-favor industry
Wall Street is particularly downbeat on the utility sector today and that is creating long-term opportunity for dividend investors. You just have to be willing to go against the grain and buy when others are selling. However, if you take the time, you'll find that there are a lot of options in the sector, including dividend-growth stocks like NextEra, boring and reliable giants like Duke, and even Dividend Kings like Black Hills. If you like dividends, don't let this utility sell-off pass you buy without at least doing a deep dive into the space.
<<<
---
>>> Microsoft Corporation (NASDAQ:MSFT) -- Number of Hedge Fund Holders: 302
https://www.insidermonkey.com/blog/5-best-stocks-to-buy-right-now-according-to-financial-media-1270874/4/
Number of Times Stock Appeared in Top Picks of Financial Media: 7
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On March 6, investment advisory Jefferies maintained a Buy rating on Microsoft Corporation (NASDAQ:MSFT) stock with a price target of $500.
Among the hedge funds being tracked by Insider Monkey, Texas-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT) with 25 million shares worth more than $9.5 billion.
In its Q4 2023 investor letter, Fred Alger Management, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“Microsoft Corporation (NASDAQ:MSFT) is a beneficiary of corporate America’s transformative digitization. Microsoft’s CEO expects technology spending as a percent of Gross Domestic Product (GDP) to jump from about 5% now to 10% in 10 years and that Microsoft will continue to capture market share within the technology sector. The company operates through three segments:
Productivity and Business Processes (Office. LinkedIn, and Dynamics),
Intelligent Cloud (Server Products and Cloud Services, Azure, and Enterprise Services), and
More Personal Computing (Windows, Devices. Gaming, and Search).
During the quarter, the company reported strong fiscal first quarter results, where revenues and earnings beat analyst estimates, driven in large part to growing Al demand. Regarding Intelligent Cloud segment, management noted Azure optimizations were similar to the previous quarter, but new Al and traditional workloads are helping drive greater consumption growth, which resulted in their first reacceleration since March 2022. We believe the strong Azure performance suggests diminishing cost optimization headwinds and growing strength in Al service consumption.”
<<<
---
>>> Apple Inc. (NASDAQ:AAPL)
https://www.insidermonkey.com/blog/5-best-stocks-to-buy-right-now-according-to-financial-media-1270874/4/
Number of Hedge Fund Holders: 131
Number of Times Stock Appeared in Top Picks of Financial Media: 6
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. On March 5, investment advisory Wedbush maintained an Outperform rating on Apple Inc. (NASDAQ:AAPL) stock with a price target of $250.
At the end of the fourth quarter of 2023, 131 hedge funds in the database of Insider Monkey held stakes worth $205 billion in Apple Inc. (NASDAQ:AAPL), compared to 134 in the previous quarter worth $179 billion.
In its Q4 2023 investor letter, Horizon Kinetics LLC highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:
“The full point is that if BYD has turned its attention from its domestic market to direct global competition, then other Chinese companies can do the same. The next most visible example of Chinese commercially applied technological prowess relates to the 2nd highest-weight company in the S&P 500, Apple Inc. (NASDAQ:AAPL).
In September 2023, Huawei Technologies introduced its Mate 60 Pro smartphone. It uses its own, internally developed 5G enabled chip that is apparently competitive with the Apple A17 chip. For practical purposes it has the functionality of the iPhone 15 Pro. This came as a great surprise – perhaps even shock – to the U.S. technology community, because four years ago the U.S. placed strict sanctions on China’s access to state-of-the-art semiconductor manufacturing technology…”
<<<
---
>>> NVIDIA Corporation (NASDAQ:NVDA) -- Number of Hedge Fund Holders: 173
https://www.insidermonkey.com/blog/5-best-stocks-to-buy-right-now-according-to-financial-media-1270874/3/
Number of Times Stock Appeared in Top Picks of Financial Media: 5
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On March 7, investment advisory Mizuho maintained a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) stock and raised the price target to $1,000 from $850.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm Citadel Investment Group is a leading shareholder in NVIDIA Corporation (NASDAQ:NVDA) with 15.4 million shares worth more than $7.6 billion.
In its Q4 2023 investor letter, Fred Alger Management, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super- computing parallel processing techniques for solving complex computational problems. Simply put, Nvidia’s computational power is a critical enabler of Al and therefore critical to Al adoption, in our view. During the period, shares contributed to performance as Nvidia reported solid fiscal third quarter results well above analyst expectations, driven by strong demand from data centers. Growing Al data center workloads are driving demand for the increased interconnections and fully accelerated software stacks, thereby enabling leading application performance and fast result times.”
<<<
---
>>> NVIDIA Corporation (NASDAQ:NVDA) -- Number of Hedge Fund Holders: 173
https://www.insidermonkey.com/blog/5-best-stocks-to-buy-right-now-according-to-financial-media-1270874/3/
Number of Times Stock Appeared in Top Picks of Financial Media: 5
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On March 7, investment advisory Mizuho maintained a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) stock and raised the price target to $1,000 from $850.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm Citadel Investment Group is a leading shareholder in NVIDIA Corporation (NASDAQ:NVDA) with 15.4 million shares worth more than $7.6 billion.
In its Q4 2023 investor letter, Fred Alger Management, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super- computing parallel processing techniques for solving complex computational problems. Simply put, Nvidia’s computational power is a critical enabler of Al and therefore critical to Al adoption, in our view. During the period, shares contributed to performance as Nvidia reported solid fiscal third quarter results well above analyst expectations, driven by strong demand from data centers. Growing Al data center workloads are driving demand for the increased interconnections and fully accelerated software stacks, thereby enabling leading application performance and fast result times.”
<<<
---
>>> The Coca-Cola Company (NYSE:KO)
https://www.insidermonkey.com/blog/5-best-stocks-to-buy-right-now-according-to-financial-media-1270874/2/
Number of Hedge Fund Holders: 62
Number of Times Stock Appeared in Top Picks of Financial Media: 4
The Coca-Cola Company (NYSE:KO) is a beverage company that manufactures, markets, and sells various non-alcoholic beverages worldwide. On March 7, investment advisory Argus maintained a Buy rating on The Coca-Cola Company (NYSE:KO) stock and raised the price target to $70 from $67.
Among the hedge funds being tracked by Insider Monkey, Omaha, Nebraska-based firm Berkshire Hathaway is a leading shareholder in The Coca-Cola Company (NYSE:KO) with 400 million shares worth more than $23 billion.
In its Q3 2023 investor letter, Hayden Capital, an asset management firm, highlighted a few stocks and The Coca-Cola Company (NYSE:KO) was one of them. Here is what the fund said:
“It’s not just emerging markets either, where one could argue a “scarcity premium” given fewer quality public companies. Even in the US, The Coca-Cola Company (NYSE:KO) trades at ~30x P/E despite having the same earnings as 10 years ago.
Both of these companies actually have lower revenues than 10 – 15 years ago too, indicating that their profit growth is mostly from margin expansion. This can only last for so long before there’s no more excess expenses left to cut.
I find it ironic that all these companies trade as “bond-equivalents” in the minds of investors – even commanding lower yields than US treasuries, the safest security in the world. But it’s clear that their businesses are not nearly as safe. Coca-Cola is facing disruption risk from consumers shifting to new, heathier beverage brands.
But these companies are ~35% more expensive than US Treasuries, despite the heightened risk. On a risk-adjusted basis, one could argue the implied premium is even higher.”
Perhaps the explanation is simply the price volatility difference between these stocks and treasuries over the last two years. For example, 10-year Treasury bonds are down ~-20% since the beginning of 2022. By comparison, KO and PG are remarkably down only -4 – 6% over that time frame.”
<<<
---
>>> Pfizer Inc. (NYSE:PFE) -- Number of Hedge Fund Holders: 79
https://finance.yahoo.com/news/20-best-stocks-buy-now-183621401.html
Number of Times Stock Appeared in Top Picks of Financial Media: 3
Pfizer Inc. (NYSE:PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. On March 4, investment advisory Cantor Fitzgerald maintained an Overweight rating on Pfizer Inc. (NYSE:PFE) stock with a price target of $45.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm Citadel Investment Group is a leading shareholder in Pfizer Inc. (NYSE:PFE) with 11.6 million shares worth more than $334 million.
In its Q4 2023 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Pfizer Inc. (NYSE:PFE) was one of them. Here is what the fund said:
“Among our bottom contributors in Q4 were BorgWarner and Pfizer Inc. (NYSE:PFE). Biopharmaceutical company Pfizer was pressured as COVID sales were slower than expected in Q4. However, outside COVID-related sales, the base business is performing as expected, and the company is starting a cost-cutting program that should restore margins to pre-pandemic levels. We continue to like Pfizer for its diversified business, strong cash flow generation capabilities and balance sheet, and solid leadership under a quality CEO.”
<<<
---
>>> Pfizer Inc. (NYSE:PFE) -- Number of Hedge Fund Holders: 79
https://finance.yahoo.com/news/20-best-stocks-buy-now-183621401.html
Number of Times Stock Appeared in Top Picks of Financial Media: 3
Pfizer Inc. (NYSE:PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. On March 4, investment advisory Cantor Fitzgerald maintained an Overweight rating on Pfizer Inc. (NYSE:PFE) stock with a price target of $45.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm Citadel Investment Group is a leading shareholder in Pfizer Inc. (NYSE:PFE) with 11.6 million shares worth more than $334 million.
In its Q4 2023 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Pfizer Inc. (NYSE:PFE) was one of them. Here is what the fund said:
“Among our bottom contributors in Q4 were BorgWarner and Pfizer Inc. (NYSE:PFE). Biopharmaceutical company Pfizer was pressured as COVID sales were slower than expected in Q4. However, outside COVID-related sales, the base business is performing as expected, and the company is starting a cost-cutting program that should restore margins to pre-pandemic levels. We continue to like Pfizer for its diversified business, strong cash flow generation capabilities and balance sheet, and solid leadership under a quality CEO.”
<<<
---
>>> The Tesla Megapack is a large-scale rechargeable lithium-ion battery stationary energy storage product, intended for use at battery storage power stations, manufactured by Tesla Energy, the energy subsidiary of Tesla, Inc.
https://en.wikipedia.org/wiki/Tesla_Megapack
Launched in 2019, a Megapack can store up to 3.9 megawatt-hours (MWh) of electricity. Each Megapack is a container of similar size to an intermodal container. They are designed to be deployed by electric utilities. The energy stored can be used as required, for example during periods of peak electricity demand or when grid power is disrupted.
Tesla Energy also offers the Powerwall, a smaller energy storage device intended for home use.
History
Tesla Gigafactory 1
Tesla Giga Nevada, where the Megapack was designed and is manufactured, along with Lathrop
On April 30, 2015, Tesla announced that it would sell standalone battery storage products to consumers and utilities.[1] Tesla CEO Elon Musk stated that the company's battery storage products could be used to improve the reliability of intermittent renewable energy sources, such as solar and wind.[1]
Prior to the Megapack launch, Tesla used its 200 kilowatt-hour (kWh) Powerpack energy storage product to meet the needs of utilities with large-scale storage requirements. During 2015 and 2016, Tesla deployed a combined 300 MWh of Powerwall and Powerpack technology, including an 80 MWh deployment of Powerpacks at the Mira Loma substation in Southern California.[2] In 2017, Tesla used Powerpacks to deploy 129 MWh of battery storage at the Hornsdale Power Reserve in South Australia,[3] the biggest deployment of lithium-ion grid battery storage in the world at the time.[4]
Design work, at Giga Nevada, began on the Megapack project at least as early as the first half of 2018.[5]
In July 2019, Megapack launched.[6] It was described by Tesla as a utility-scale energy storage product, suitable for power stations and utilities.[6] Tesla claimed that Megapacks would be compatible with Tesla power station monitoring and energy control software, Powerhub and Autobidder.[6] The company stated that Megapack was designed to meet the needs of large-scale battery storage projects, as with the Hornsdale Power Reserve.[6]
Tesla acquired a former JC Penney's distribution center in Lathrop, California, in 2021 and converted it into a battery plant called Megafactory,[7] with a target capacity of 40 GWh/year when finished.[8] Next-generation Megapacks use prismatic lithium iron phosphate cells,[9] for example in the 585 MWh Kapolei, Hawaii facility.[10]
Tesla’s record energy deployment was achieved in Q1 2023, adding 3.9 GWh in a single quarter, a 360% year-over-year increase.[11][needs update]
In 2023, Tesla announced a new “Megafactory” in Shanghai to manufacture Megapacks, with the goal of producing about 10,000 packs per year.[12]
Specifications
Model Unit Cost Capacity Power Round Trip Efficiency Dimensions (W x H x D)[13] Weight[13]
Megapack $1.24M 2.6 MWh[14] 1 MW[15] 23.52 ft × 8.27 ft × 5.44 ft
(7.168 m × 2.522 m × 1.659 m) 56,000 lb
(25,400 kg)
Megapack 2 $1.47M 3.854 MWh 1.927 MW 92.0% 23.79 ft × 8.22 ft × 5.37 ft
(7.25 m × 2.506 m × 1.637 m) 67,200 lb
(30,500 kg)
Megapack 2 XL $1.39M 3.916 MWh 979 kW 93.7% 28.87 ft × 9.14 ft × 5.41 ft
(8.8 m × 2.785 m × 1.65 m) 84,000 lb
(38,100 kg)
Megapacks are assembled at the Tesla Megafactory in Lathrop, California.
Terms
Each Megapack comes with a 15-year "no defect" and "energy retention" warranty.[15] A 10 or 20 year "performance guarantee" is available for an additional cost.[15] Once a Megapack has reached the end of its useful life, Tesla says they can be returned for recycling.[16]
Megapacks are pre-assembled, including "battery modules, bi-directional inverters, a thermal management system, an AC main breaker and controls."[17]
Tesla requires customers to purchase a maintenance service agreement. Each Megapack receives a minor annual service, and a major service every ten years. The annual maintenance includes inspections and cleaning. The ten-year maintenance includes activities such as replacing the pump and fan for the thermal management system and refilling the coolant fluid.[18] Maintenance is expected to take about an hour per Megapack.[16]
Design
The Megapack thermal management system is located at the top of each unit.[16] It uses coolant fluid, made of an equal-parts mixture of ethylene glycol and water, to keep the battery at operating temperature.[16]
Each Megapack weighs approximately 51,000 pounds (23,000 kg) and the enclosure is built to a similar size as an intermodal container and includes twistlock fittings to allow automated handling.
Applications
Tesla Megapack site with solar canopies[19] 3D sketch
Grid batteries are used for ancillary services such as control of frequency and phase, black start, operating reserve etc.
Peak power
Megapacks are designed for large-scale energy storage. Megapacks are used by utilities to replace peaker power plants,[20] which generate energy during periods of peak demand. Megapacks store grid energy rather than generating it from fuel.[21]
Powerpacks continue to be used by utilities to meet smaller-scale grid energy storage requirements. For example, a 25 MW / 52 MWh deployment of Powerpacks is in use at the Lake Bonney Wind Farm in South Australia.[22]
Time shifting
Energy storage has become a requirement to help convert intermittent energy sources such as wind and solar into firm power.[23]
Other energy storage solutions, such as pumped hydroelectric storage, dominate the time-shift market. As of 2019, pumped hydroelectric storage accounted for 96% of global energy storage capacity.[24] Pumped hydroelectric storage systems have lower efficiency, but longer lifetimes than battery storage.[24]
Megapack can be deployed more quickly than other storage technologies.[25]
Supercharger stations
3D sketch of Tesla Supercharger station with solar canopies and 8 Megapack set for close to 32 MWh
Megapacks have been installed at Tesla Supercharger stations that also have solar canopies to help power the Megapacks.[26] Megapacks can smooth out electric demand on the local power grid and use the stored Megapacks electricity during peak demand so there aren't excessive surcharges on electricity to charge the electric vehicles.[27]
Deployments
Completed
In November 2019, Tesla used a Megapack to power a mobile recharging station for Tesla electric vehicles in California.[28] The mobile Supercharger was reported to deliver 125 kW, and was transported on a flat trailer attached to a truck between deployment locations.[28]
In December 2019, Tesla delivered a 1.25 MW/2.5 MWh Megapack to the Millidgeville Substation in Saint John, Canada for peak shaving.[29][30] The battery is estimated to save owner Saint John Energy CA$200,000 per year.[31] It became operational on April 3, 2020.[32]
The 300 MW Victorian Big Battery stores 377 to 450 MWh[33] near Geelong constituted the largest battery in the southern hemisphere[34] The commissioning process resumed in late September after being halted due to a fire (see "Safety" below), and the lessons learned were applied to other batteries.[35] The battery was commissioned on time in December 2021, a year after contract,[36] with an estimated return on investment of 2.4.[37]
Strata Solar, an American commercial solar services provider engaged Tesla as the battery provider for a 100 MW/400 MWh energy storage facility in Ventura County, California, using 142 Megapacks.[38] The deployment replaced a natural-gas powered peaker power plant. In 2023 Strata announced its Scatter Wash project, a Megapack-powered 255 MW / 1 GWh project in Phoenix, Arizona.[11]
Pacific Gas and Electric Company (PG&E) operates a 182.5 MW / 730 MWh 256-Megapack system at Moss Landing, in Monterey County.[39][40][6][41]
Safety
Grid-scale battery standards and fire containment practices are at an early stage of development.[42]
Fire risks are one factor that has delayed the deployment of some utility energy storage systems. Battery fires cannot be extinguished with water, which is the primary firefighting technique in most communities. A fire in a single cell can cascade to others via thermal runaway, possibly in milliseconds, potentially creating a major hazard. [42]
Preventing fires involves multiple layers of protection. First, is to prevent fire in a single cell, by eliminating sparks and short circuits. However, grid-scale systems face potential problems such as coolant leaks and faulty installation. Venting flammable gases and improved insulation reduce cascade risks. Placing controls outside of the container gives more management options. Instead of suppressants, monitoring the situation while watering surrounding areas can help contain the fire. Sensors that track local weather conditions can help avoid overheating. Lithium-free designs with lower fire risks are possible.[42]
“Plume modeling” attempts to predict how gases from burning battery chemicals might travel. The gases produced vary across battery types, hydrogen fluoride (HF) are of particular concern even at low concentrations. A later plume analysis by Vistra reported that concentrations of HF above California exposure limits could spread across an area 1300 feet in diameter under wind conditions that occur 7 percent of the year.[42]
In Raquette Lake, New York, the town passed a one-year moratorium preventing battery installation in response to protests citing fires at three New York battery installations. Protestors cited a fire in Lyme New York that burned for four days.[42]
A Megapack ignited at PG&E's Moss Landing facility in September 2022. The fire led to a day-long shelter-in-place advisory. PG&E stated that safety measures included thermal alarms that can shut down the system, an incident command center, an audible evacuation alarm, pre-fire planning with local fire crews and emergency shut down protocols. Heat-suppression systems, intended to curb thermal runaway, were accidentally triggered, dousing batteries in water that caused arcing and short circuiting. The plant was shut down for months.[43] Vistra's third installation in Moss Landing adopted the outdoor container model instead of putting the racks under a single roof. (Vistra stated that the outdoor design was chosen to expedite construction.)[42][44]
In July 2021, one of the 212 Megapack modules at the Victorian Big Battery project caught fire[45] due to a coolant leak while the battery was unmonitored. That ignited the adjacent Megapack.[35] Three days later, the fire had burnt itself out as preferred by the fire department.[46][47][42]
A 50 MW / 100 MWh battery project using Tesla Megapack 2 is under construction in Bouldercombe near Rockhampton, Queensland.[48] The alternating current section caught fire in September 2023 and spread to the cells of one Megapack module, also damaging the adjacent module. Both modules are being replaced by Tesla. Other 36 modules were operational a couple of days later.[49]
<<<
---
>>> Tesla, Inc. (NASDAQ:TSLA) -- 14-day RSI: 31.26
https://www.insidermonkey.com/blog/5-oversold-blue-chip-stocks-to-buy-right-now-1274453/2/
Number of Hedge Fund Holders: 82
Based in Austin, Texas, Tesla, Inc. (NASDAQ:TSLA), designs, develops, manufactures, sell and leases fully electric vehicles and energy generation and storage solutions. Its current portfolio of products includes Model 3 and Model S sedans, Model Y, Model X SUVs, and Cybertruck, while upcoming products include Tesla Roadster and Tesla Semi – a light commercial vehicle.
On January 24, Tesla, Inc. (NASDAQ:TSLA) released its financial results for Q4 2023. Its revenue increased by 3% y-o-y to $24.3 billion, while net income surged by 115% y-o-y to $3.7 billion. Its normalized EPS of $0.71 missed consensus estimates by $0.03.
Tesla, Inc. (NASDAQ:TSLA) ranks highest on our list of 11 oversold blue chip stocks to buy right now based on the value of shares held by hedge funds. As of Q4 2023, 82 hedge funds owned shares worth $6.3 billion. In its Q4 2023 investor letter, Tsai Capital Corporation, an investment management firm, made the following comments about Tesla, Inc. (NASDAQ:TSLA):
“Tesla has significant and underappreciated competitive advantages across multiple verticals including electric vehicles, software and energy storage. Misunderstood by much of Wall Street – and consequently a favorite of short sellers – Tesla continues to grow rapidly and increase its lead over the competition while delighting consumers in the process. [. . .] While we expect competition for EVs to intensify and for Tesla to lose market share over time, we also believe the company will increase production and deliveries from approximately 1.8 million vehicles today to approximately 15 million vehicles in 2030 and further its lead in autonomous driving capability. In fact, we expect Tesla will eventually license its autonomous driving software, creating high-margin (70-80%), recurring licensing revenue. Tesla is also one of only two companies that dominate the energy storage market, which has the potential to grow to several hundred billion in revenue as power plants around the world increase their focus on renewable energy.”
<<<
---
>>> Tesla, Inc. (NASDAQ:TSLA) -- 14-day RSI: 31.26
https://www.insidermonkey.com/blog/5-oversold-blue-chip-stocks-to-buy-right-now-1274453/2/
Number of Hedge Fund Holders: 82
Based in Austin, Texas, Tesla, Inc. (NASDAQ:TSLA), designs, develops, manufactures, sell and leases fully electric vehicles and energy generation and storage solutions. Its current portfolio of products includes Model 3 and Model S sedans, Model Y, Model X SUVs, and Cybertruck, while upcoming products include Tesla Roadster and Tesla Semi – a light commercial vehicle.
On January 24, Tesla, Inc. (NASDAQ:TSLA) released its financial results for Q4 2023. Its revenue increased by 3% y-o-y to $24.3 billion, while net income surged by 115% y-o-y to $3.7 billion. Its normalized EPS of $0.71 missed consensus estimates by $0.03.
Tesla, Inc. (NASDAQ:TSLA) ranks highest on our list of 11 oversold blue chip stocks to buy right now based on the value of shares held by hedge funds. As of Q4 2023, 82 hedge funds owned shares worth $6.3 billion. In its Q4 2023 investor letter, Tsai Capital Corporation, an investment management firm, made the following comments about Tesla, Inc. (NASDAQ:TSLA):
“Tesla has significant and underappreciated competitive advantages across multiple verticals including electric vehicles, software and energy storage. Misunderstood by much of Wall Street – and consequently a favorite of short sellers – Tesla continues to grow rapidly and increase its lead over the competition while delighting consumers in the process. [. . .] While we expect competition for EVs to intensify and for Tesla to lose market share over time, we also believe the company will increase production and deliveries from approximately 1.8 million vehicles today to approximately 15 million vehicles in 2030 and further its lead in autonomous driving capability. In fact, we expect Tesla will eventually license its autonomous driving software, creating high-margin (70-80%), recurring licensing revenue. Tesla is also one of only two companies that dominate the energy storage market, which has the potential to grow to several hundred billion in revenue as power plants around the world increase their focus on renewable energy.”
<<<
---
>>> Tesla, Inc. (NASDAQ:TSLA) -- 14-day RSI: 31.26
https://www.insidermonkey.com/blog/5-oversold-blue-chip-stocks-to-buy-right-now-1274453/2/
Number of Hedge Fund Holders: 82
Based in Austin, Texas, Tesla, Inc. (NASDAQ:TSLA), designs, develops, manufactures, sell and leases fully electric vehicles and energy generation and storage solutions. Its current portfolio of products includes Model 3 and Model S sedans, Model Y, Model X SUVs, and Cybertruck, while upcoming products include Tesla Roadster and Tesla Semi – a light commercial vehicle.
On January 24, Tesla, Inc. (NASDAQ:TSLA) released its financial results for Q4 2023. Its revenue increased by 3% y-o-y to $24.3 billion, while net income surged by 115% y-o-y to $3.7 billion. Its normalized EPS of $0.71 missed consensus estimates by $0.03.
Tesla, Inc. (NASDAQ:TSLA) ranks highest on our list of 11 oversold blue chip stocks to buy right now based on the value of shares held by hedge funds. As of Q4 2023, 82 hedge funds owned shares worth $6.3 billion. In its Q4 2023 investor letter, Tsai Capital Corporation, an investment management firm, made the following comments about Tesla, Inc. (NASDAQ:TSLA):
“Tesla has significant and underappreciated competitive advantages across multiple verticals including electric vehicles, software and energy storage. Misunderstood by much of Wall Street – and consequently a favorite of short sellers – Tesla continues to grow rapidly and increase its lead over the competition while delighting consumers in the process. [. . .] While we expect competition for EVs to intensify and for Tesla to lose market share over time, we also believe the company will increase production and deliveries from approximately 1.8 million vehicles today to approximately 15 million vehicles in 2030 and further its lead in autonomous driving capability. In fact, we expect Tesla will eventually license its autonomous driving software, creating high-margin (70-80%), recurring licensing revenue. Tesla is also one of only two companies that dominate the energy storage market, which has the potential to grow to several hundred billion in revenue as power plants around the world increase their focus on renewable energy.”
<<<
---
>>> Apple Inc. (NASDAQ:AAPL) -- 14-day RSI: 32.14
https://finance.yahoo.com/news/11-oversold-blue-chip-stocks-195219274.html
Number of Hedge Fund Holders: 131
Apple Inc. (NASDAQ:AAPL) is a leading technology company focused on the designing, manufacturing, and marketing of smartphones, personal computers, tablets, wearables, and accessories, and sells a variety of related services. It released worldwide the latest version of its flagship smartphone titled iPhone 15, on September 22 last year.
The quarterly revenue of Apple Inc. (NASDAQ:AAPL) increased by 2% on a y-o-y basis in the quarter ended December 30. The company posted a revenue of $119.6 billion and a net income of $33.9 billion, which translated to an adjusted EPS of $2.18.
As of Q4 2023, Apple Inc. (NASDAQ:AAPL) shares were held by 133 of the 933 hedge funds tracked by Insider Monkey, the highest on our list of 11 oversold blue chip stocks to buy right now. Warren Buffett’s Berkshire Hathaway was its biggest shareholder with ownership of 905.6 million shares valued at $174 billion.
In its Q4 2023 investor letter, Wedgewood Partners, an investment management firm, made the following comments about Apple Inc. (NASDAQ:AAPL):
“The Company's services segment revenue growth accelerated to +16% over last year, one of the fastest growth rates since Covid-19 lockdowns, helping drive +11% growth in earnings per share. The strength in the Company's services segment was aided by over 1 billion paid subscribers across Apple's media platforms. We estimate that there are more than 2 billion iOS devices in Apple's global installed base, which still represents a very large addressable share of their current subscriber count. Apple also continues to innovate across its hardware portfolio, with custom silicon for nearly all its device form factors. More recently, the Company launched its new line of Mac computers, which included their M3 family of chips, including the M3 Max, which contains up to an astonishing 92 billion transistors. Apple's long-term strategy of creating products with customized hardware and software should continue to differentiate their products and help drive solid revenue growth and expense leverage across the Company's ecosystem.”
<<<
---
>>> Apple Inc. (NASDAQ:AAPL) -- 14-day RSI: 32.14
https://finance.yahoo.com/news/11-oversold-blue-chip-stocks-195219274.html
Number of Hedge Fund Holders: 131
Apple Inc. (NASDAQ:AAPL) is a leading technology company focused on the designing, manufacturing, and marketing of smartphones, personal computers, tablets, wearables, and accessories, and sells a variety of related services. It released worldwide the latest version of its flagship smartphone titled iPhone 15, on September 22 last year.
The quarterly revenue of Apple Inc. (NASDAQ:AAPL) increased by 2% on a y-o-y basis in the quarter ended December 30. The company posted a revenue of $119.6 billion and a net income of $33.9 billion, which translated to an adjusted EPS of $2.18.
As of Q4 2023, Apple Inc. (NASDAQ:AAPL) shares were held by 133 of the 933 hedge funds tracked by Insider Monkey, the highest on our list of 11 oversold blue chip stocks to buy right now. Warren Buffett’s Berkshire Hathaway was its biggest shareholder with ownership of 905.6 million shares valued at $174 billion.
In its Q4 2023 investor letter, Wedgewood Partners, an investment management firm, made the following comments about Apple Inc. (NASDAQ:AAPL):
“The Company's services segment revenue growth accelerated to +16% over last year, one of the fastest growth rates since Covid-19 lockdowns, helping drive +11% growth in earnings per share. The strength in the Company's services segment was aided by over 1 billion paid subscribers across Apple's media platforms. We estimate that there are more than 2 billion iOS devices in Apple's global installed base, which still represents a very large addressable share of their current subscriber count. Apple also continues to innovate across its hardware portfolio, with custom silicon for nearly all its device form factors. More recently, the Company launched its new line of Mac computers, which included their M3 family of chips, including the M3 Max, which contains up to an astonishing 92 billion transistors. Apple's long-term strategy of creating products with customized hardware and software should continue to differentiate their products and help drive solid revenue growth and expense leverage across the Company's ecosystem.”
<<<
---
>>> Zoetis Inc. (NYSE:ZTS) -- 14-day RSI: 32.16
https://finance.yahoo.com/news/11-oversold-blue-chip-stocks-195219274.html
Number of Hedge Fund Holders: 50
Parsippany, New Jersey-based Zoetis Inc. (NYSE:ZTS) is a leading animal health company with a portfolio and pipeline of medicines, vaccines, diagnostics, and technologies offered in over 100 countries. Formerly a subsidiary of Pfizer Inc. (NYSE:PFE), the company became independent through a spinoff in 2013.
Zoetis Inc. (NYSE:ZTS) has been continuously making efforts to increase its product franchises in major markets. During the fourth quarter, the company received approvals for Simparica Trio, the company’s triple combination oral parasiticide for dogs, in China. While the company’s injectable monoclonal antibody for the alleviation of pain associated with osteoarthritis in cats, Solensia, received approval in Brazil.
Zoetis Inc. (NYSE:ZTS) has paid regular dividends since its spinoff from Pfizer Inc. (NYSE:PFE) with consecutive dividend increases for several years. The board of directors of the company declared a dividend of $0.432 per share for Q2 2024, on February 6.
<<<
---
>>> Zoetis Inc. (NYSE:ZTS) -- 14-day RSI: 32.16
https://finance.yahoo.com/news/11-oversold-blue-chip-stocks-195219274.html
Number of Hedge Fund Holders: 50
Parsippany, New Jersey-based Zoetis Inc. (NYSE:ZTS) is a leading animal health company with a portfolio and pipeline of medicines, vaccines, diagnostics, and technologies offered in over 100 countries. Formerly a subsidiary of Pfizer Inc. (NYSE:PFE), the company became independent through a spinoff in 2013.
Zoetis Inc. (NYSE:ZTS) has been continuously making efforts to increase its product franchises in major markets. During the fourth quarter, the company received approvals for Simparica Trio, the company’s triple combination oral parasiticide for dogs, in China. While the company’s injectable monoclonal antibody for the alleviation of pain associated with osteoarthritis in cats, Solensia, received approval in Brazil.
Zoetis Inc. (NYSE:ZTS) has paid regular dividends since its spinoff from Pfizer Inc. (NYSE:PFE) with consecutive dividend increases for several years. The board of directors of the company declared a dividend of $0.432 per share for Q2 2024, on February 6.
<<<
---
>>> McDonald's Corporation (NYSE:MCD) -- 14-day RSI: 35.50
https://finance.yahoo.com/news/11-oversold-blue-chip-stocks-195219274.html
Number of Hedge Fund Holders: 63
Chicago, Illinois-based McDonald's Corporation (NYSE:MCD) is the biggest fast-food restaurant chain operator worldwide. It began with a single drive-in restaurant in San Bernardino, California in 1955 and has since grown to nearly 40,000 locations across more than 100 countries globally and serves more than 60 million customers annually.
On February 5, McDonald’s Corporation (NYSE:MCD) released its financial results for Q4 2023. Its revenue increased by 8% y-o-y to $6.4 billion while it generated a net income of $2.04 billion. Its normalized EPS of $2.95 surpassed consensus estimates by $0.12.
As of Q4 2023, McDonald’s Corporation (NYSE:MCD) shares were owned by 63 of the 933 hedge funds tracked by Insider Monkey, for a total value of $2.1 billion. Ken Griffin’s Citadel Investment Group was the largest shareholder with ownership of 1.8 million shares valued at $533 million.
<<<
---
>>> Novartis AG (NYSE:NVS) - 14-day RSI: 37.75
https://finance.yahoo.com/news/11-oversold-blue-chip-stocks-195219274.html
Number of Hedge Fund Holders: 28
Basel, Florida-based Novartis AG (NYSE:NVS) focuses on the discovery, development, manufacture and marketing of prescription and generic pharmaceutical products and eye care products.
On February 6, Novartis AG (NYSE:NVS) announced that it has entered into an agreement to acquire MorphoSys AG (NASDAQ:MOR) in a transaction implying a total value of €2.7 billion. The transaction expands and complements the company’s pipeline in oncology and enhances its global footprint in hematology.
On February 23, BMO Capital analyst Etzer Darout initiated coverage of Novartis AG (NYSE:NVS) shares with a price target of $114 with a ‘Market Perform’ rating for the shares. The target price represents a potential upside of 15.15% based on the latest share price.
<<<
---
>>> Novartis AG (NYSE:NVS) - 14-day RSI: 37.75
https://finance.yahoo.com/news/11-oversold-blue-chip-stocks-195219274.html
Number of Hedge Fund Holders: 28
Basel, Florida-based Novartis AG (NYSE:NVS) focuses on the discovery, development, manufacture and marketing of prescription and generic pharmaceutical products and eye care products.
On February 6, Novartis AG (NYSE:NVS) announced that it has entered into an agreement to acquire MorphoSys AG (NASDAQ:MOR) in a transaction implying a total value of €2.7 billion. The transaction expands and complements the company’s pipeline in oncology and enhances its global footprint in hematology.
On February 23, BMO Capital analyst Etzer Darout initiated coverage of Novartis AG (NYSE:NVS) shares with a price target of $114 with a ‘Market Perform’ rating for the shares. The target price represents a potential upside of 15.15% based on the latest share price.
<<<
---
>>> Amgen, Inc. (NASDAQ:AMGN) - 14-day RSI: 37.92
https://finance.yahoo.com/news/11-oversold-blue-chip-stocks-195219274.html
Number of Hedge Fund Holders: 69
Thousand Oaks, California-based Amgen, Inc. (NASDAQ:AMGN) is a leading biotechnology company discovering, developing, manufacturing, and delivering innovative human therapeutics with a focus on areas of high unmet medical need.
On February 6, Amgen, Inc. (NASDAQ:AMGN) released its financial results for the Q4 2023. Its revenues increased by 20% y-o-y to $8.2 billion, while it generated a net income of $767 million. The normalized EPS for the quarter was recorded at $4.71, which surpassed the consensus by $0.12.
Earlier on October 6, 2023, Amgen, Inc. (NASDAQ:AMGN) completed the acquisition of Horizon Therapeutics plc in an all-cash transaction implying an equity value of nearly $27.8 billion. The acquisition strengthened the company’s inflammation portfolio by adding first-in-class, early-in-lifecycle medicines which treat rare inflammatory diseases.
<<<
---
>>> Amgen, Inc. (NASDAQ:AMGN) - 14-day RSI: 37.92
https://finance.yahoo.com/news/11-oversold-blue-chip-stocks-195219274.html
Number of Hedge Fund Holders: 69
Thousand Oaks, California-based Amgen, Inc. (NASDAQ:AMGN) is a leading biotechnology company discovering, developing, manufacturing, and delivering innovative human therapeutics with a focus on areas of high unmet medical need.
On February 6, Amgen, Inc. (NASDAQ:AMGN) released its financial results for the Q4 2023. Its revenues increased by 20% y-o-y to $8.2 billion, while it generated a net income of $767 million. The normalized EPS for the quarter was recorded at $4.71, which surpassed the consensus by $0.12.
Earlier on October 6, 2023, Amgen, Inc. (NASDAQ:AMGN) completed the acquisition of Horizon Therapeutics plc in an all-cash transaction implying an equity value of nearly $27.8 billion. The acquisition strengthened the company’s inflammation portfolio by adding first-in-class, early-in-lifecycle medicines which treat rare inflammatory diseases.
<<<
---
>>> Amgen, Inc. (NASDAQ:AMGN) - 14-day RSI: 37.92
https://finance.yahoo.com/news/11-oversold-blue-chip-stocks-195219274.html
Number of Hedge Fund Holders: 69
Thousand Oaks, California-based Amgen, Inc. (NASDAQ:AMGN) is a leading biotechnology company discovering, developing, manufacturing, and delivering innovative human therapeutics with a focus on areas of high unmet medical need.
On February 6, Amgen, Inc. (NASDAQ:AMGN) released its financial results for the Q4 2023. Its revenues increased by 20% y-o-y to $8.2 billion, while it generated a net income of $767 million. The normalized EPS for the quarter was recorded at $4.71, which surpassed the consensus by $0.12.
Earlier on October 6, 2023, Amgen, Inc. (NASDAQ:AMGN) completed the acquisition of Horizon Therapeutics plc in an all-cash transaction implying an equity value of nearly $27.8 billion. The acquisition strengthened the company’s inflammation portfolio by adding first-in-class, early-in-lifecycle medicines which treat rare inflammatory diseases.
<<<
---
>>> Vertiv Holdings Co (NYSE:VRT) - Number of Hedge Fund Investors: 75
https://finance.yahoo.com/news/billionaire-stanley-druckenmiller-top-12-114039919.html
Duquesne Capital’s Q4 2023 Investment Value: $111.1 million
Vertiv Holdings Co (NYSE:VRT), an American multinational corporation, specializes in providing critical infrastructure and services for data centers, communication networks, and commercial and industrial environments. On February 21, the company released its fourth-quarter results. Adjusted earnings per share for the period were reported at $0.56, exceeding estimates by $0.03. However, revenue for the quarter saw a 12.7% year-over-year increase, reaching $1.87 billion, falling short of estimates by $0.03.
As of Q4 2023, Vistra Corp. (NYSE:VST) was one of the top picks in Stanley Druckenmiller's portfolio. A total of 75 elite hedge funds tracked by Insider Monkey held its shares, valued at $3.1 billion.
ClearBridge SMID Cap Growth Strategy stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its fourth quarter 2023 investor letter:
“Within IT, AI trends continue to positively impact order trends at data center and technology hardware companies to the benefit of companies like Monolithic Power Systems, our top-performing holding during the quarter. Enthusiasm supplying power management for Nvidia’s AI GPUs supported both strong 2023 performance and a robust future outlook. This strong demand also translated into positive performance for industrials holding Vertiv Holdings Co (NYSE:VRT), a leader in power and thermal management and related tools and systems used by data centers. However, we continue to monitor the sustainability of such trends, as well as their valuations, on a case-by-case basis. As a result, we trimmed the position size of both of these investments, following strong stock performance.”
<<<
---
>>> Vistra Corp. (NYSE:VST) - Number of Hedge Fund Investors: 56
https://finance.yahoo.com/news/billionaire-stanley-druckenmiller-top-12-114039919.html
Duquesne Capital’s Q4 2023 Investment Value: $91.87 million
Vistra Corp. (NYSE:VST), headquartered in Irving, Texas, is a prominent integrated retail electricity and power generation company serving customers, businesses, and communities across the United States, spanning from California to Maine. Renowned for its leadership in the energy transformation sector, Vistra Corp. (NYSE:VST) plays a pivotal role in shaping the future of energy.
On March 1, Vistra Corp. (NYSE:VST) announced the successful completion of its acquisition of Energy Harbor Corp. This strategic move enhances Vistra's position in the integrated zero-carbon generation and retail electricity market by adding approximately 4,000 megawatts of 24/7 nuclear generation capacity and expanding its customer base by approximately 1 million retail customers.
By the end of 2023’s fourth quarter, 56 out of the 933 hedge funds surveyed by Insider Monkey were the firm’s investors. Stanley Druckenmiller owned approximately $92 million worth of VST shares as of the end of 2023
<<<
---
>>> Vistra Corp. (NYSE:VST) - Number of Hedge Fund Investors: 56
https://finance.yahoo.com/news/billionaire-stanley-druckenmiller-top-12-114039919.html
Duquesne Capital’s Q4 2023 Investment Value: $91.87 million
Vistra Corp. (NYSE:VST), headquartered in Irving, Texas, is a prominent integrated retail electricity and power generation company serving customers, businesses, and communities across the United States, spanning from California to Maine. Renowned for its leadership in the energy transformation sector, Vistra Corp. (NYSE:VST) plays a pivotal role in shaping the future of energy.
On March 1, Vistra Corp. (NYSE:VST) announced the successful completion of its acquisition of Energy Harbor Corp. This strategic move enhances Vistra's position in the integrated zero-carbon generation and retail electricity market by adding approximately 4,000 megawatts of 24/7 nuclear generation capacity and expanding its customer base by approximately 1 million retail customers.
By the end of 2023’s fourth quarter, 56 out of the 933 hedge funds surveyed by Insider Monkey were the firm’s investors. Stanley Druckenmiller owned approximately $92 million worth of VST shares as of the end of 2023
<<<
---
That looks like a great show. I've been to that Phila / Camden venue several times back in my 'prog' days (Yes, ELP, Jethro Tull). But Willie Nelson, Bob Dylan, Robert Plant sounds great :o)
RIP Greg Lake and Keith Emerson -
>>> Vistra Corp. (VST), together with its subsidiaries, operates as an integrated retail electricity and power generation company. The company operates through six segments: Retail, Texas, East, West, Sunset, and Asset Closure. It retails electricity and natural gas to residential, commercial, and industrial customers across states in the United States and the District of Columbia. In addition, the company is involved in the electricity generation, wholesale energy purchases and sales, commodity risk management, fuel production, and fuel logistics management activities. It serves approximately 4 million customers with a generation capacity of approximately 37,000 megawatts with a portfolio of natural gas, nuclear, coal, solar, and battery energy storage facilities. The company was formerly known as Vistra Energy Corp. and changed its name to Vistra Corp. in July 2020. Vistra Corp. was founded in 1882 and is based in Irving, Texas. <<<
---
>>> Vistra Corp. (VST), together with its subsidiaries, operates as an integrated retail electricity and power generation company. The company operates through six segments: Retail, Texas, East, West, Sunset, and Asset Closure. It retails electricity and natural gas to residential, commercial, and industrial customers across states in the United States and the District of Columbia. In addition, the company is involved in the electricity generation, wholesale energy purchases and sales, commodity risk management, fuel production, and fuel logistics management activities. It serves approximately 4 million customers with a generation capacity of approximately 37,000 megawatts with a portfolio of natural gas, nuclear, coal, solar, and battery energy storage facilities. The company was formerly known as Vistra Energy Corp. and changed its name to Vistra Corp. in July 2020. Vistra Corp. was founded in 1882 and is based in Irving, Texas. <<<
---
>>> AI Is Giving Nuclear Power a Big Lift. 4 Stocks Riding the Trend.
Data centers being built to run AI systems require lots of power. Nuclear power is exceptionally well suited to meeting such enormous demands.
Barron's
by Avi Salzman
March 28, 2024
https://www.barrons.com/articles/ai-nuclear-power-stocks-8852a830
A small set of companies that own nuclear reactors have seen their stocks soar at Nvidia-like rates in the past few months, part of a little-noticed renaissance in an industry that hasn’t had much to brag about in years. They can thank artificial intelligence.
Nuclear power, it turns out, is exceptionally well suited to meeting the enormous electricity demands of data centers for AI. As a result, the stocks of Constellation Energy CEG, Vistra, and Talen Energy are each up more than 90% in the past year. There’s a good chance they’ll go still higher.
“The world clearly is moving in our direction,” said Constellation CEO Joe Dominguez on the company’s latest earnings call.
For years, most of the world was moving in the opposite direction. The fear of nuclear accidents like the 2011 Fukushima disaster is part of the problem. But economics have played a role, too. Operating a nuclear plant has been a terrible business — barely profitable without government subsidies. Generating electricity from nuclear fuel often costs more than generating it from natural gas, because natural-gas prices have fallen during the U.S. shale-drilling revolution. The growth of renewables also complicates life for nuclear power owners. When strong winds gust in Texas, the surge of wind power can cause electricity prices to fall below zero...
<<<
---
>>> AI Is Giving Nuclear Power a Big Lift. 4 Stocks Riding the Trend.
Data centers being built to run AI systems require lots of power. Nuclear power is exceptionally well suited to meeting such enormous demands.
Barron's
by Avi Salzman
March 28, 2024
https://www.barrons.com/articles/ai-nuclear-power-stocks-8852a830
A small set of companies that own nuclear reactors have seen their stocks soar at Nvidia-like rates in the past few months, part of a little-noticed renaissance in an industry that hasn’t had much to brag about in years. They can thank artificial intelligence.
Nuclear power, it turns out, is exceptionally well suited to meeting the enormous electricity demands of data centers for AI. As a result, the stocks of Constellation Energy CEG, Vistra, and Talen Energy are each up more than 90% in the past year. There’s a good chance they’ll go still higher.
“The world clearly is moving in our direction,” said Constellation CEO Joe Dominguez on the company’s latest earnings call.
For years, most of the world was moving in the opposite direction. The fear of nuclear accidents like the 2011 Fukushima disaster is part of the problem. But economics have played a role, too. Operating a nuclear plant has been a terrible business — barely profitable without government subsidies. Generating electricity from nuclear fuel often costs more than generating it from natural gas, because natural-gas prices have fallen during the U.S. shale-drilling revolution. The growth of renewables also complicates life for nuclear power owners. When strong winds gust in Texas, the surge of wind power can cause electricity prices to fall below zero...
<<<
---
Tilray - >> 1 Stock I Wouldn't Touch With a 10-Foot Pole
by David Jagielski
Motley Fool
March 21, 2024
https://finance.yahoo.com/news/1-stock-wouldnt-touch-10-115000531.html
For every good stock you can buy, there's usually at least a couple of bad ones you are better off avoiding. Stocks that are falling in value can seem like tempting buys since they look cheap, but often they're declining for a good reason. If a stock is down more than 80% over the past five years, that's probably a good sign that there's something seriously wrong with the business. And unless you have an extremely compelling reason to invest in it and believe that it will turn things around, you probably are better off avoiding it.
That brings me to a stock I could never envision buying, and that's cannabis producer Tilray Brands (NASDAQ: TLRY). The stock has fallen more than 95% during the past five years. And although many cannabis investors still remain bullish on it, the business is incredibly risky. Here's why if I were to make a never-buy list, Tilray Brands stock would definitely be on it.
The company operates in a market where there's limited growth potential
To be fair to Tilray, I would never buy any Canadian cannabis stock. The simple reason is that the market is has too many marijuana producers, driving up supply and pushing down prices. This is why you see Tilray getting into the alcohol industry and focusing on the international cannabis markets; the growth potential in the Canadian cannabis market just isn't appealing at all.
The end result is that generating significant revenue growth becomes difficult. Consider the company's most recent results as an example. For the period ended Nov. 30, Tilray reported $67.1 million in revenue from its cannabis business. But two years earlier, its cannabis revenue during the same period was $58.8 million. Over a two-year period, Tilray's cannabis revenue only grew by 14%, and that's with the help of acquisitions.
Tilray's management has often painted an inflated picture of the business
What makes Tilray an even more unappealing investment is its management. I'm wary of companies that grossly overstate their long-term expectations and can be setting up shareholders for disappointment down the road. That's what I felt back in 2021 when the company's Chief Executive Officer Irwin Simon "mapped out a path" for the company to get to $4 billion in revenue by 2024.
Tilray is nowhere near that mark today. It's at an annual run rate of less than $800 million right now. And I'm not just speaking with the benefit of hindsight here. I was skeptical about Tilray's projection when it first came out, noting how incredibly optimistic it was for management to rely on so much revenue from the U.S. and European markets.
The icing on the cake came in 2022 when the German government said that Tilray was not accurate in issuing a press release in which it said it held a "roundtable" discussion with German officials about legalizing cannabis in the country. It was a prime example of how Tilray's management can get ahead of itself.
Even if you can stomach the risk, there are much better stocks to buy than Tilray Brands
Tilray Brands isn't a great business to own. If you're bullish on marijuana and want exposure to the long-term opportunities in the industry, then a better option may be to simply invest in multistate marijuana operators that are already operating in the U.S. market. Investing in Tilray based on the hope that it might be able to enter the U.S. one day is a much riskier strategy, and that's what many cannabis investors who buy the stock are likely banking on today.
There isn't a strong and compelling reason to believe that Tilray will find a better path forward. Acquiring companies can help manufacture more revenue growth, but it won't necessarily make Tilray a better investment. And a lot of the growth it's generating these days is due to acquisitions. Tilray isn't a good growth stock, and it comes with too much risk for it to be worth taking a chance on.
<<<
---
>>> 3 Cannabis Stocks Ready to Light Up on Reform Rumors
Investor Place
by Josh Enomoto
March 18, 2024
https://finance.yahoo.com/news/3-cannabis-stocks-ready-light-002817595.html
While it’s difficult to say with confidence who will win out in the elections later this year, investors of cannabis stocks may have something to look forward to. Basically, the attention should turn not to a possible red or blue wave but rather a green one.
Fundamentally, President Joe Biden has a popularity problem: his candidacy is simply not resonating with voters. However, for the first time in history, the leader of the free world used part of the State of the Union address to promote marijuana reform. Such overt messaging could have strong implications for the election and for cannabis stocks overall.
Basically, the people have spoken. According to a Reuters report earlier this year, public support for cannabis legalization has reached an all-time high (?) Though it’s a tricky narrative, neither party will want to alienate voters in what should be an extremely tight race.
Founded in 1868, Scotts Miracle-Gro (NYSE:SMG) isn’t exactly what you would call a pure-play candidate for cannabis stocks. However, the business itself – manufacturing marketing and selling products for lawn, garden care and indoor and hydroponic gardening – features clear implications for the botanical industry. What’s great here is that the company offers multi-tiered relevance, irrespective of what happens to the legalization initiative.
Last year, the company suffered some shaky performances. In particular, its second-quarter earnings print of $1.17 per share missed the consensus view of $1.45. However, the company beat estimates for earnings per share in Q1, Q3 and Q4. During these periods, the average positive earnings surprise came in at just over 6%.
Intriguingly, experts believe that by the end of the current fiscal year, Scotts will post EPS of $2.69. That would be a massive improvement over last year’s print of $1.21. Further, per-share profitability in 2025 could hit $3.68.
Analysts rate SMG a moderate buy with a high-side price target of $70.
Canopy Growth (CGC)
I’m going to be straight up: Canopy Growth (NASDAQ:CGC) represents an extremely risky idea among cannabis stocks. Sure, the company has a pedigree, being one of the top names in the production, distribution and sale of cannabis and hemp-based products for recreational and medical purposes. Primarily, Canopy operates in Canada, along with the U.S. and Germany.
However, Wall Street isn’t giving CGC stock the time of day in terms of market expectations. Per TipRanks, Canopy suffers from a moderate sell consensus view. Even worse, among the five experts within the past three months, not a single one issued a buy rating. That said, in August last year, Roth MKM’s William Kirk issued a “buy” rating with a $22.18 price target, implying 620% upside potential.
To be sure, Canopy has suffered from poor financial performance. In the trailing 52 weeks, CGC stock suffered a calamitous decline of 85%. However, there have been four upward EPS revisions in the last 30 days. Analysts seem confident that by the end of 2025, Canopy could narrow its per-share loss of $1.08. That’s still a loss but a far cry from the per-share loss of $52.25.
Tilray (TLRY)
Let’s end on a more positive note with Tilray (NASDAQ:TLRY). Headquartered in Leamington, Canada, Tilray engages in the research, cultivation, processing and distribution of medical cannabis products in its home market. As well, the company has expanded operations to the U.S., Europe, Australia, New Zealand and Latin America, among other regions. The company operates through four segments: Cannabis Business, Distribution Business, Beverage Alcohol Business and Wellness Business.
Since the start of the year, TLRY stock lost 22% of equity value. However, last week, shares ended in the black by over 2%. Financially, as with other cannabis stocks, Tilray has incurred some ugly earnings performances. However, in fiscal Q4 of last year, it posted a per-share loss of 7 cents against an expected loss of 6 cents. That’s a significant improvement from the prior three quarters.
Moreover, by the end of the current fiscal year, analysts anticipate sales to hit $795.77 million. Looking to 2025, they project revenue of $885.55 million. In contrast, the company posted sales of $627.12 million last year.
Finally, covering experts rate TLRY a moderate buy with a $2.62 average price target. The high-side estimate calls for $4.10.
<<<
---
>>> Why Tilray, Cronos, and Canopy Growth Stocks All Popped Today
by Rich Smith
Motley Fool
March 22, 2024
https://finance.yahoo.com/news/why-tilray-cronos-canopy-growth-160256013.html
Marijuana stocks are closing out the week on a strong note Friday, with shares of Cronos Group (NASDAQ: CRON) up a solid 5% through 10:50 a.m. ET, and Tilray Brands (NASDAQ: TLRY) and Canopy Growth (NASDAQ: CGC) doing even better -- up 11.8% and 26.6%, respectively.
U.S. news is part of the reason for investors' renewed enthusiasm for cannabis stocks -- earlier this week, Vice President Kamala Harris spoke approvingly of administration efforts to reduce federal regulation of marijuana. But arguably more important for marijuana investors is what's happening right now in Germany.
United States of Marijuana
Steve Symington wrote about the U.S. aspect of this story earlier this week, after Harris told reporters it's time for the United States "to legalize marijuana," and that the first step toward doing so is to reschedule the drug from a Schedule I narcotic to a less dangerous Schedule III controlled substance instead -- as the U.S. Department of Health and Human Services recommended doing last year.
That statement alone helps explain why shares of Cronos stock are up 20% already this week, and Tilray stock is up 27%. (Canopy Growth has some other things of its own going on this week, notably a move to set up a Canopy USA holding company to capitalize on any quick legalization of marijuana in America, which has helped push its stock up 91%!)
But whether or not marijuana gets legalized in the U.S. in the near future, there's another country where this is all but guaranteed to happen: Germany.
What's happening in Germany
As marijuana news source Marijuana Moment reports today, Germany recently passed a law that will fully legalize the drug in that country.
Up until now, it's been an open question when exactly the law would take effect. But on Friday, German legislators declined to take a legislative step that would have delayed implementation of the law by six months. As a result, marijuana is set to become legal in Germany on April 1 -- legalizing marijuana possession, home growing, and also distribution among members of "social clubs."
Or as German Federal Health Minister Karl Lauterbach put it today: "Legalization of cannabis will arrive on Easter Monday!"
For investors in cannabis stocks such as Tilray, Cronos, and Canopy Growth, that news alone sounds pretty good. Even better will be when the second stage of marijuana legalization happens, and Germany passes laws to standardize commercial production and retail sale of cannabis in the country.
Right now, Tilray probably stands in the best position to capitalize on that future development. It already generates approximately 45% of its annual revenue ($285 million) from the Europe, Middle East, and African region that includes Germany. Canopy Growth, with 12% of its revenue coming from Germany in particular, will also benefit from this development, while Cronos is less likely to benefit. According to data from S&P Global Market Intelligence, nearly 99% of Cronos' revenue come from just two countries -- Canada and Israel.
So if you're wondering why Tilray and Canopy Growth stocks are doing so much better than Cronos stock today, well, right there's your reason.
<<<
---
Ombow, Yes, they seem interesting enough for a modest LT position (maybe), but that's about as far as I'd go, pending additional research. $350 is my limit anyway, which effectively avoids getting into too much trouble :o) But even with $350 / stock, you still can't become cavalier in the selection process. Of my 200+ individual stocks, only a handful don't have long track records. There are some turnarounds or 'contrarian values', but these are stocks with great long term charts that have hit headwinds. Because of their strong track records, the odds are they will resume their long term uptrends.
Anyway, it's a long way from throwing big bets down on bio stocks. lol. I actually only tried that (mega bets) a few times. Once with Dendreon (DNDN), and came away with a quick $40 K gain (pure luck), and another bio stock (binary event) I luckily got out of on a Friday afternoon, right before the disappointing press release after the market close. Man, dodged a major bullet there, and that was the end for my uber gun-slinging days lol. But I still found other ways to lose money, and back then knew zero about TA / chart, so was set up to fail. Plus an overly cavalier attitude. Better off being on the paranoid side :o) As Andy Grove of Intel famously said --> 'Only the paranoid survive' -
---
Ombow, More on the emotional aspects of investing, from John Bogle (video below). The traditional allocation recommendation he talks about - 65% in stocks, 35% bonds, would have me on daily Tagamet for sure lol. But everyone is different. Fwiw, I like the old rule about subtracting your age from 100, so a 70 year old would thus have a 30% stock allocation. I'm 69, and have a 28% stock allocation, so that's pretty close. But even at 28%, nervous nellies (like me) may need another way to 'stay the course' with that 28%.
Here's what I came up with --> put half (14%) in the S+P 500, and the other half in a large number of individual stocks (200) with great long term charts. Selling that many individual stocks would be too cumbersome, so that forces you to maintain a permanent 14% stock allocation. So a step in the right direction for a jumpy investor. The other 14% in the S+P 500 can be sold off quickly if necessary, sit safely cash, or alternately be used to fully hedge the individual stocks by using the 1X short ETF (SH). So having these options means the angst level is effectively controlled, and you don't feel trapped and subject of the whims of the market.
Anyway, it seems to be working, but we'll see what happens when the next financial crisis rolls around. The markets were clobbered in 2001-02, 2008. 2020, 2022, so maybe we are due for a period of relatively smooth sailing (?) Who knows, but it helps to have a simple strategy in place to hedge if / when things really come unglued again. So angst controlled allows --> 'stay the course'.
An alternative that I notice a lot of older I-Hubbers are using, is to not be in the stock market at all. With cash/ money markets paying 4-5%, this strategy can be attractive. For me though, I experience considerable angst when the market goes up and I'm sitting 100% in cash, and that angst is actually even worse than being long through the market's inevitable fluctuations. So.. I figure the key is to find the right balance.
Ombow, The 'buy and pray' approach would be another way to deal with the angst aspect of investing, so whatever works. But I doubt the Creator would condone gambling on small cap tech stocks for the excitement and lure of easy / fast riches.
With the emotional side, Buffett says this is the biggest challenge investors face. More than intellectual ability, investors have to control their temperament -
Ombow, Lol. I wasn't much of an athlete, but decent at tennis and skiing.
With investing, taking a large position assumes that you know A LOT about the company, sector, competitive landscape, and can analyze financial statements, etc. So in other words, you have to be like Warren Buffett --> an uber brainiac who reads 500 pages/day. So that obviously rules us out. The alternative is extreme diversification (S+P 500), and also figuring out a way to manage one's own temperament / emotions enough to 'stay the course'.
In 1 minute (video below), Buffett explains why investors like us need - 1) extreme diversification, and 2) should not trade. Concentration is only for people who really know what they're doing, and can accurately and consistently analyze businesses. Face it, that's not us -
Ombow, >> when to build a position <<
That's another advantage with small positions. You still want the timing reasonably right, but since these would be long term buy/holds, the exact timing is less critical.
Personally I've been sticking with more established companies that have nice longer term charts. It's harder to find small companies like that, but they are out there. Here's my list, by market cap (link below). There are 12 stocks with market caps between 1 and 5 bil, and 31 stocks between 5-10 bil, so plenty to choose from. I own them all, albeit small positions -
https://investorshub.advfn.com/Buy-Hold-Stocks-42434
---
Ombow, Looking at that list, Joby and Archer look like the obvious choices. Eve Holding is already a subsidiary of Embraer, and Ehang is Chinese. In Europe there is Lilium (Germany) and Vertical Aerospace (UK), but these are considerably smaller than Joby and Archer.
Anyway, at first glance it looks like splitting an investment between Joby and Archer might have the best odds. My limit is a laughable $350 per individual stock (sometimes $500), so basically just 'play money'. Big positions, forget it (imo).
For me 'angst avoidance' is a big criteria for several reasons - 1) The key to making money in the stock market is to own quality and hold long term, and too much angst is the enemy of 'staying the course'. 2) Angst is not only unpleasant but unhealthy. It's different if you are young and want a shot at the 'big score', but once retired the key is not losing money. As Buffett says - Investing Rule #1 is - 'Don't lose money', especially for people our age. Unless you have gobs of excess $ to burn, but even then the risk is the 'slippery slope' and addictive aspect of speculation. Even mega rich guys can get hooked on the thrill of gambling and end up broke. Best to adhere to the ancient maxim --> 'Nothing to excess'. Small positions are fun, no ulcers, AND the results are better :o)
---