Does the clean energy sector involve mostly smaller stocks that are losing money?
There is a perception that the clean energy sector is dominated by micro-cap stocks that are losing money. While that does describe many of the stocks in the sector, there are still numerous larger stocks in the sector that are solidly profitable. For example, Norway-based Renewable Energy Corp (Oslo: REC), a producer of the silicon wafers that are used to manufacture solar cells, produced $1.2 billion in revenues in 2007 and had higher profit margins than Intel. Of the 62 stocks in the Melvin Clean Energy Index, about half are profitable and the median market cap is a sizeable $500 million. Does the clean energy sector really have legs? Some investors are concerned that investing in the clean energy sector is simply a fad that will eventually collapse like a house of cards. However, there are multiple drivers behind the clean energy sector that are likely to propel strong growth for the sector over the next several decades. The main driver is the need to move away from fossil fuels du
