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Reynders and McVeigh, Boston Green Technology Fund, shares five green technology stock picks June 10, 2009

Posted by HubTechInsider in renewable energy.
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Reynders, McVeigh Capital Management is a Boston firm that picks green stocks for wealthy individuals. Recently, managing partner Charlton Reynders, who along with partner Patrick McVeigh formed the firm in 2005, talked about five of the company’s green technology picks for the future.

Reynders and McVeigh invest in a group of 25 to 35 companies that pass certain criteria on social, environmental, and economic factors. They claim that their $350 million portfolio lost 1.6% annually in the last three years, as compared to an 8.3% drop in the S&P 500.

They support a concept known as investing in the green revolution’s “backbone”. Backbone is defined as the suppliers of technologies other green ventures use to make riskier end-use products, such as solar panels, wind turbines and biofuels.

“Many green tech companies are one-shot wonders,” Reyders explains. As the credit crunch isn’t yet over, companies whose debt equals more than one-third of capital are potentially at risk.

One pick is Applied Materials. They entered the solar business three years ago and have such customers as China’s Suntech Power. The solar unit had sales of $819 million last year and lost $183 MM. They plan to expand into LED lighting over the next few years.

A second pick is Denmark’s Novozymes, which sells the enzymes used in corn-based ethanol production. They are working on the enzymes used in cellulosic-based ethanol and detergent enzymes that can displace polluting phosphates.

Danish company Vestas Wind Turbines is a third pick. They are a cheap stock and one with alot of potential upside.

Switzerland’s ABB is the world’s largest maker of equipment for electric power grids. These grids, worldwide, may need an upgrade in order to handle expanded green technology power generation and get that extra electricity to market efficiently.

For example, in China ABB is building a 1,250-mile high voltage DC power line to carry current up to 20% more efficiently from the Xiangjiaba Hydro Plant to Shanghai.

Another stock to watch grow in the new green technology economy is Deere & Co., which will benefit from the fitting of GPS sensors to more efficiently grade farmland and minimize water runoff and help to increase crop yields.


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