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SX Greentech Advisor
High Profit ESG Investing
The current market is giving investors headaches, but it’s not unusual in Greentech to find savvy investors looking past the near-term economic fears and focusing on companies that are tapping into what promises to be terrific growth from de-carbonizing the economy.

This issue, we highlight a small cap stock with amazing engineering savvy at a minor, but essential, feature of electric vehicles. Management expects it can grow revenue about 50% every year through the rest of the decade as automaker customers begin to churn out EVs. It’s in the early stages of growth and is seeing strong fund buying as well as exceptional technicals.

We also highlight three ESG stocks showing the best technicals in the group, as part of our recurring ESG Three, give the current sector outlook indicated by our Greentech Timer, and provide a detailed rundown of the stocks in our current portfolios. We have some ratings changes and refreshed sell-stop recommendations for many of our holdings.

Read through for more details.

This issue we feature an exciting new EV company that has come to market – we believe its warrants offer the best chance for big profits, a trade similar to how we turned 190% profit on Altus Power (AMPS) recently.

Also, we update our portfolios with the latest recommendations – we’re selling a laggard and setting sell-stops on most other holdings in case the market worsens. Still, we’re cautiously optimistic. Our ESG Three and market commentary are included too.

The market shows some uncertainty over what the Federal Reserve may do today, so we’re advising some caution. Still, our Greentech portfolios are exposed to all the best performers in the sector right now. This issue, we round out our setup for entering the red-hot solar sector.

Our ESG Three offers fresh ideas to explore as well, and we run down our portfolios and potential moves we may make.

The market is under pressure but it’s not clear the bears are back in charge yet. The market is still digesting how significant the latest round of climate funding will be, and we expect sentiment will improve in the coming weeks despite the weakness we’re seeing at the moment. Until proven otherwise, we’re still working higher off the bottom hit in May.

In this issue we feature a company that is at the heart of half the solar projects in the country and just launched a new product line to take advantage of the projected boom in EV chargers. We also take the measure of our portfolios, with no new rating changes this issue. A new ESG Three and our market outlook are also inside.

The bull market breakout for Greentech continues! U.S. policymaker action earlier this month coincided with a turn toward bullishness that was already building this summer to give our stocks some room to run.

We have three stocks featured this issue – both to watch and to buy: high tech batteries with a global market, a U.S.-focused solar play, and a niche player with a solution to global water issues and one set of greenhouse gas emissions.

Also this issue: our ESG Three, market commentary and an update on our portfolios.

Hopes of a massive U.S. cleantech spending bill have been revived and appear to be the catalyst to accelerate the positive moves we’ve been seeing in the sector the past few weeks. The bill isn’t a done deal yet, so we need to be wary of being whipsawed if it fails. We’re setting the stage for success with two familiar stocks this week that promise to be leaders in the next leg higher.

Also: Updates on our portfolios, the ESG Three and a look at our Timer.

The government is making moves to support domestic industry and incentivize consumers to choose environmentally friendlier products. That provides the tailwinds for a new buy recommendation this issue, a manufacturer of in-demand products in a booming market. Click through to our issue to learn the market (hint: it’s not the U.S.) and what stocks appears set to make the next leg higher in its bullish run.

As always, too, three more strong ESG stocks to consider, our market outlook and updates on our portfolios.

A difficult June closed out the most challenging first half to a trading year in a very long time. Caution remains our primary watchword, but we continue to hold a selection of the strongest stocks in Greentech and see some opportunities to make more incremental gains even in these difficult conditions. This issue, we add to our Watch list a renewable energy producer whose chart suggests a breakout is soon to come.

Also this issue, three fresh stocks to consider in our ESG Three, and we touch base on our portfolios and see what our exclusive Greentech advance-decline line is telling us.

Inflation fears have growth stocks like Greentech on the defensive. We already own some of the best-looking stocks in the sector right now despite the turmoil. This issue, we examine another potential addition to the portfolio that shows good relative performance.

We also review our current portfolios, with a new sell recommended. As always, we discuss our outlook for the sector and provide three additional stock ideas with our ESG Three.

Our featured stock this issue is a company in transformation, from a niche recycling business to a green energy operation that will generate 14 times the revenue next year than it did last year, with profits. The stock price hasn’t caught up yet.

We also take the measure of Greentech and see signs it could be ending the bear move. As always, we update our portfolios and offer further suggestions to examine with our ESG Three.

The recent market sell-off has made for a bearish-looking market – yet it also has opened up some bargain basement opportunities in Greentech companies. This issue, we recommend kicking the tires on discounted warrants in two companies with compelling business models and strong outlooks.

As always, we also suggest three ESG stocks to consider and review our current portfolios.

We still face headwinds in the market, but action to start the week in Greentech is encouraging. This issue we look at what stocks the “typical” ESG mutual fund and ETF own and examine an undiscovered stock that is showing great strength appealing to health-conscious consumers.

As always, we also suggest three ESG stocks to consider and review our current portfolios.

I’d like to thank each of you for your interest in renewable energy, decarbonization and ESG investing. I remain a steadfast believer in the long-term transition to clean energy and the profits that it will offer to investors. Since I began investing in the sector in 2007, I’ve never been more optimistic about its future, regardless of the markets right now.
The latest week of action suggests the market-wide bearishness is affecting Greentech, with only 6% of the U.S. listed stocks in our universe posting gains since our issue hit your inbox last Wednesday. At that time, we said Greentech is in a zone of support. It still is, but today’s early trading is pushing the sector toward testing a lower trendline we see as a crucial support level. We’re now also about a 6% decline from current levels to a test of the 27-month low set in May. Those two levels provide a band of support at 42-40 for PBW and, as our proxy for the Greentech sector, that’s important support we want to see hold.
Greentech is in a zone of support. While it has declined about 14% in the past two weeks, which is discouraging, we’re seeing buying coming in at current levels, where, technically, is an area we want to see bulls pushing back. Overall, the Greentech Timer is telling us to be cautious – it’s below all three of the moving averages we watch and on Friday, trading broke support from an earlier gap higher. The area of real concern for our sector would come with another 10% decline from today’s levels.
A sizeable drop in the market indexes yesterday got all the headlines, as it leads to concerns the Federal Reserve will be more aggressive in raising interest rates to tamp down inflation that isn’t cooling as quickly as hoped. The drop plunked the markets on top of a zone of support – all the trading that happened below current levels in mid-June to mid-July – so there is no need to panic.
We’re not buying or selling any positions with this update. We are, however, going to recommend converting REE warrants to shares under a company tender. More below.
Stocks are down this week after hitting resistance at their major moving averages and trendlines. So far the recent move back seems very normal after enjoying a good rally. Where it goes from here will determine if the recent summer rally has run its course or if we’ll see the re-establishment of a bullish move higher.
We have three ‘buys’ and a ‘drop’ from our Watch list this week.

Greentech is looking its most bullish in nine months, as the market are heartened by the Inflation Reduction Act and its $390 million support for U.S. clean energy efforts. The act still has to go be passed by the House of Representatives, but that is probably a rubber stamp after overcoming the high hurdle of the split Senate.

Russia’s decision to cut the oil it exports to Europe again – it’s now down to about 20% of pre-Ukraine invasion levels – is a sign the country wants to force energy prices higher to break opposition to the war. Higher fossil fuel prices are a long-term positive for renewable utility-level energy in Europe and for EVs there and in the U.S. In the sector right now, there are still lots of headwinds, but Greentech is making some progress. The near-term moving averages, the 20-day and 40-day, are now flat and hinting at turning higher, a sign that the bears may be wearing themselves out. Other signals are mixed but increasingly suggest the lows of May could be the bottom of this market.
It remains a very weak market, and there are plenty of reasons to remain skeptical of near-term improvement. We’re still under the moving averages and the bearish trendline from November’s peak. Greentech and the broader technology sector (the Nasdaq 100) are both sitting just over areas of technical support that would probably signal a fresh round of sharp sell-offs if breached. For Greentech, a 10% drop here would test the pre-pandemic, nine-year high.
The market remains in a bearish posture, with a number of technical signals suggesting the move downward isn’t done yet. Greentech is below its 20-day and 40-day moving averages, which are downtrending, meeting our definition of bearish and there remains a well-defined downtrend line in the broad market and Greentech. That said, we’re above the lows of May, which in itself is a sign the market may be working its way toward a turnaround.
Looking at the weekly charts, last week created some damage, technically. The S&P 500, tech-heavy Nasdaq 100 and the Greentech ETFs all gapped lower with last week’s action. A price gap typically creates resistance, and the pushback here is made even sturdier because the gap coincides with the 40-day moving average for Greentech (the S&P and Nasdaq 100 are well below their 40-day averages today). That means that even while we’re looking at posting the third straight up-day in the Greentech sector for the week, it’s not a time to get overly optimistic.
There’s reason to be heartened this week, as the market and Greentech continue to improve, extending on the hints of a turnaround we discussed in our issue last week. In fact, Greentech is looking better than the broader market right now, as it sits over the 20-day and 40-day moving averages (the S&P 500 and Nasdaq Tech 100 are below their 40-day) and we’re seeing Greentech’s 40-day line start to make a turn higher.
Montauk Renewables (MNTK) has closed below our sell-stop of “around 16.50” two consecutive days, and we’re recommending selling the position today.
Desalination equipment maker Energy Recovery (ERII) settled at 25.55 Thursday, a breakout over 25, which is the move we’ve been watching for.
Geothermal energy producer Ormat Technologies (ORA) closed Friday at 86.54, above our target for a breakout. We are shifting the stock from ‘Watch’ to ‘Buy’ for Monday.
We’re going to take profits on Archaea Energy (LFG) today, after shares tripped our stop-loss of ‘under 20’ with a close at 19.80 Monday. We should book a profit of around 8%. There is more support for LFG below here, particularly at 18.70, but with sectors broadly breaking support levels yesterday, we prefer to get out with a profit now.
Our stop-loss mark on Advanced Water Systems (WMS) was tripped Friday, and with its weaker open today, we’re recommending selling.
The bearish close of last week triggered some of our sell-stops and we should sell the following positions today.
Onsemi (ON) closed beneath 60 yesterday. That triggers our tiered sell-stop for the position, of sell half ‘near 60.’
ESS Tech (GWH) closed below our sell-stop yesterday and isn’t bouncing today. We recommend selling.
Our warrants for LiCycle (LICY.WS) are being redeemed by the company.
Aspen Aerogels (ASPN) triggered our sell-stop. Let’s take our profits and sell today.
Wolfspeed (WOLF) closed at 104.60 Thursday, below our recommended stop-loss level of 107. We recommend selling today.
Array Technologies (ARRY) triggered our sell-stop with its close at 17.65 Wednesday, and we recommend selling today.