Prop 23 Update: Al Gore Bails On Solar Investment Strategy
10/01/2012 1 Comment
Al Gore’s “Green” Investment Company has exited the solar business. After taking an economic hair cut on their “go green” solar investments his company has exited the solar investment business according to SEC Filings.
If you are thinking about green energy for your portfolio, Al Gore has a few words of advice: “Don’t do it.”
“Of course he does not say that in public,” says Bill Gunderson, president of Gunderson Capital Management. “Gore’s company still talks about how alternative energy is a good investment. How companies are adopting it, governments are subsidizing it and people are using it.”
But SEC filings from Gore’s company, Generation Investment, tell a different story, says Gunderson, who hosts a nationally syndicated financial talk radio program and writes for MarketWatch and TheStreet.com.
“Generation Investment says it is all about climate change, but it is just a typical investment fund with typical stocks,” Gunderson said.<
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In the summer of 2010, Generation Investment bought about 440,000 shares of First Solar, worth almost $65 million
Gore bought near the peak.
As the price of First Solar plunged from $141 in 2010 to $30 in the first quarter of 2012, Gore’s company kept throwing good money after bad, buying more and more stock until its investment in early 2012 totaled about 1.12 million shares worth about $28 million dollars.
Generation Investment sold it soon after, SEC records show.
Generation Investment also has private investments and investments in other alternative energy companies that it is not required to disclose to the SEC.
Among the companies listed in the “private and confidential client update” from Generation Investment are SMA Solar, the largest solar company in Germany. Its value has gone down 57 percent over the last year.
In China, Generation Investment said it had an investment in the world’s largest solar panel manufacturer, SunTech. The stock has gone down 82 percent over the last year.
Also in the portfolio are EcoSynthetix, Landi Renzo and Meyer Burger, which have lost 60 percent, 25 percent and 49.6 percent respectively over the last year
In Gunderson’s newsletter and on his radio shows, he told his listeners and clients to “sell everything under the sun” and he was shorting First Solar at $121 in May 2011. Gunderson repeated this to the Toronto Globe in December 2011.
“I don’t blame Gore for getting out of alternative energy,” Gunderson said, “even if he did it too late in the case of First Solar.
“But when is he going to tell people that alternative energy is a lousy investment?”
If the high priest of the AGW global warming cult has exited the solar business, it must not be a real solution to the nation energy needs.