Update on the Kip Green 25
Of our picks for stocks that can benefit from the environmental movement, one became a takeover target and most posted impressive returns.
The Kiplinger Green 25 continues to post high-energy results. Our index of 25 green stocks is up 17% from August 20, 2007, when we set the index, through the middle of the day on December 17. Standard & Poor's 500-stock index eked out a 1% gain during the same stretch of time.
Row 0 - Cell 0 | The Kiplinger Green 25 |
Row 1 - Cell 0 | The Kiplinger 25 Best Funds |
Row 2 - Cell 0 | An Under-the-Radar Overseas Fund |
And now we have the first takeover of an index component. Ingersoll-Rand has announced a $10 billion acquisition of Trane (symbol TT), which until late November was known as American Standard (ASD).
Ingersoll will pay Trane shareholders $36.50 a share in cash and 0.23 of each of its shares for each share of Trane. The announcement propelled Trane's stock price up 21.8% on December 17, to close at $45.31.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Ingersoll covets Trane's heating, ventilation and air-conditioning business. Trane is particularly strong in energy-efficient systems, which will benefit as high energy prices encourage building owners to replace outdated units.
Indeed, the push for cheaper, cleaner and renewable sources of energy can be seen in the performance of the Green 25. The three best performers, Suntech Power Holdings (STP), SunPower (SPWR) and MEMC Electronics Materials (WFR), respectively up 124%, 93% and 56%, are all cashing in on strong demand for solar power.
The returns of the power-generator builders -- McDermott International (MDR), Shaw Group (SGR) and ABB (ABB) -- have also been electrifying, up 46%, 24% and 22%.
Ormat Technologies (ORA), which specializes in running geothermal power plants, has gained 19%, and trash-to-energy Covanta (CVA) is up 24%. The more mainstream utilities of Exelon (EXC) and FPL Group (FPL), both of which rely heavily on nuclear energy, are up 18% and 16%, respectively.
The biggest losers so far in the Green 25 are Tenneco (TEN), down 24%, and Trinity Industries (TRN), off 20%.
We liked Tenneco for its position in fuel-efficient emissions equipment for diesel engines, but for now the company is weighed down by the auto slump. Trinity makes railcars that are used to haul, among other things, ethanol. Ethanol volumes have zoomed, but it's been tough to make profits in the industry.
-
Use An iPhone? You May Be Hearing From A Class-Action Lawsuit Group
A handful of suits against the iPhone maker seek to crack down on everything from app store purchases to messaging.
By Keerthi Vedantam Published
-
Capital One/Discover: What's In Their Wallet For You?
Push back on Capital One's planned merger with Discover is growing with one group of consumer advocates calling for a public hearing.
By Keerthi Vedantam Published
-
Stock Market Today: Dow Outperforms as Merck Hits New High
The S&P 500 and Dow Jones Industrial Average snapped three-day losing streaks as drugmaker Merck rallied.
By Karee Venema Published
-
Stock Market Today: S&P 500, Dow Extend Losing Streaks
Reddit stock continued to charge higher and has now nearly doubled in price since last week's IPO.
By Karee Venema Published
-
Stock Market Today: Bitcoin, Boeing Shine as Stocks Slip
Digital World Acquisition sizzled, too, ahead of its merger with Trump Media & Technology Group.
By Karee Venema Published
-
Stock Market Today: Dow Retreats After Nike Earnings
The Nasdaq Composite managed to notch a new record close Friday, building on the week's impressive gains.
By Karee Venema Published
-
Stock Market Today: Stocks Hit New Highs as Rate-Cut Momentum Continues
Reddit sizzled in its market debut, while Apple slumped after the tech giant was slapped with an antitrust lawsuit.
By Karee Venema Published
-
Stock Market Today: Stocks Climb After Fed Forecasts Three Rate Cuts This Year
The main indexes notched new record closes Wednesday after the Federal Reserve kept its outlook for rate cuts unchanged.
By Karee Venema Published
-
Stock Market Today: Stocks Close Higher After Nvidia's Reversal
The main indexes erased early losses Tuesday as mega-cap tech stock Nvidia swung higher.
By Karee Venema Published
-
Stock Market Today: Nasdaq Soars on Strength in Magnificent 7 Stocks
The main indexes started the week strong after several mega-cap stocks rallied.
By Karee Venema Published