And now for another renewable energy/green pick (our last two, RSOL and CECE have been doing well):
Energy Conversion Devices (ENER – current price – $7.25).

Description of company:

“We design, manufacture and sell photovoltaic (“PV”) products, known as PV or solar laminates that generate clean, renewable energy by converting sunlight into electricity. Our solar laminates have unique characteristics that differentiate them from conventional crystalline solar modules, including physical flexibility, light weight, high durability and ease of installation. These characteristics make our products particularly suitable for rooftop and building integrated photovoltaic (“BIPV”) applications, which are our target markets.”

Like many of my investment ideas, I am attracted to ENER simply because it is trading at a five-year low, and is reporting massive losses. However, despite these apparent negatives the company is positioned to take advantage of the extraordinary growth in renewable energy sector over the coming years. Of note, is that the company seems to have invested over $550 million over the past few years building out significant solar PV manufacturing facilities. This is set against an enterprise value of a little over $400 million, implying that the company’s stock price is selling beneath replacement cost. The counterargument to this is, of course, that the company overinvested in manufacturing capacity. However, I tend to believe that any excess capacity in the solar sector will be reduced with time. So it’s more of a timing issue than a complete loss scenario. Finally, I should mention that ENER is often rumored as an acquisition candidate for a larger solar company.

As always, I have no idea where ENER will trade in the near-term, but buying at a five-year low when prospects for the company appear dismal, despite the tremendous potential future growth opportunities, is probably as good a time as any to take a chance. I suspect that as ENER’s losses lessen over the coming quarters, and new deals are announced, the stock price will recover.

Disclosure: Affiliates of Envoy Global Research, and its principals, own shares in ENER. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise