INRG

Sally57

INRG down another 5% today at around 975 from a year high of 1450. Is the bubble bursting on renewables or clean energy funds or is it a good time to invest? I personally have topped up my holding today. Any thoughts?

Voyager2002

I think that topping up was a good move. Obviously clean energy is out of fashion but there are still some compelling arguments to invest in this sector.

MPN

Voyager2002 said:

I think that topping up was a good move. Obviously clean energy is out of fashion but there are still some compelling arguments to invest in this sector.

Would you mind me asking why you feel clean energy or renewable funds are ‘out of fashion’? I agree it’s probably a good move for Sally to top up at the current share price.

Voyager2002

MPN said:

Would you mind me asking why you feel clean energy or renewable funds are ‘out of fashion’?

Purely because of the price movements. Obviously there has been a lot of selling, more than the 'profit-taking' one would expect from the very high prices earlier this year.

Thrugelmir

The INRG ETF became a self fulfilling investment fad.  Driven by money flows into a concentrated group of stocks. Nothing wrong with the renewables sector. Providing stocks are bought at fair prices as that's what really matters. Orsted for example has had a torrid time recently. From construction issues, a tax bill from the Danish Government, a lack of wind resulting in a profit warning, to more recently it's wind turbines freezing in Texas. 

MPN

Thrugelmir said:

The INRG ETF became a self fulfilling investment fad.  Driven by money flows into a concentrated group of stocks. Nothing wrong with the renewables sector. Providing stocks are bought at fair prices as that's what really matters. Orsted for example has had a torrid time recently. From construction issues, a tax bill from the Danish Government, a lack of wind resulting in a profit warning, to more recently it's wind turbines freezing in Texas. 

Does INRG hold Orsted? It’s not in their top 10 holdings? 
It may be fad/fashion investing, however in my opinion clean energy funds certainly have a part to play in the future.

virenque

Had 4.63% of Orsted in December, but looks like they sold at least some if it.

virenque

Holding 9% in a company that's never had any earnings won't help either :-)

Prism

MPN said:

Thrugelmir said:

The INRG ETF became a self fulfilling investment fad.  Driven by money flows into a concentrated group of stocks. Nothing wrong with the renewables sector. Providing stocks are bought at fair prices as that's what really matters. Orsted for example has had a torrid time recently. From construction issues, a tax bill from the Danish Government, a lack of wind resulting in a profit warning, to more recently it's wind turbines freezing in Texas. 

Does INRG hold Orsted? It’s not in their top 10 holdings? 
It may be fad/fashion investing, however in my opinion clean energy funds certainly have a part to play in the future.

Clean energy will have a very important place in the future, but it doesn't necessarily make it a good investment and certainly not at any price. I think the fund got ahead of itself a little.

Thrugelmir

MPN said:

Thrugelmir said:

The INRG ETF became a self fulfilling investment fad.  Driven by money flows into a concentrated group of stocks. Nothing wrong with the renewables sector. Providing stocks are bought at fair prices as that's what really matters. Orsted for example has had a torrid time recently. From construction issues, a tax bill from the Danish Government, a lack of wind resulting in a profit warning, to more recently it's wind turbines freezing in Texas. 

Does INRG hold Orsted? It’s not in their top 10 holdings? 
It may be fad/fashion investing, however in my opinion clean energy funds certainly have a part to play in the future.

Probably because the current Orsted share price is down some 35% on January 2021's high. 

Vestas Wind Systems another INRG holding is also down 32% on it's recent high.

I know both stocks well as owned them as individual shares pre INRG. Sold out of both last year. Cashed in at a 94% gain for Vestas and 77% for Orsted. A reflection of how much the share prices rose over a short period of time. 

Clean energy isn't a fad. The ETF is.  A material difference.  Understanding what's the under bonnet so to speak is key. Investment bankers will sell anything packaged as an ETF if it makes them a profit. 

csgohan4

I'm almost 20% down for a small holding, but will be holding than selling, it's a long term investment, not a day trader stock for me.