InvestingDaily.com

Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.



Close
FEATURED STRATEGY

Up an astonishing 1,192.8% with no end in sight

Get rich from the world's most BORING stocksI just published a report on my top 5 dividend stocks. One is up 630.8% since we added it to our portfolio. Another, I call “America’s best cash machine” because of its 8.2% yield. And a third is up 1,192.8%… with no end in sight. Best of all, these wonders pay juicy dividends and rake in top-notch gains in both bull AND bear markets. Get their names here.

 

Ethanol Mandates, Carbon Emissions, and Tesla in Puerto Rico

By Robert Rapier on October 27, 2017

One thing that seemed inevitable following Donald Trump’s election was that it wasn’t good news for the ethanol industry. After all, the Environmental Protection Agency (EPA) oversees compliance regarding the ethanol mandates, and Administrator Scott Pruitt had long been a staunch opponent of these mandates. 

Add in the fact that Carl Icahn, majority owner of the refiner CVR Energy (NYSE: CVI), is a vocal critic of the current arrangement and that he was tapped to advise President Trump on the issue.

It seemed pretty sure that the ethanol mandates would be relaxed, and I recommended investors avoid ethanol stocks as a result. I even suggested aggressive investors consider shorting them, noting in January:

“I would urge caution with the ethanol sector in 2017, at least until the policy direction becomes clear. Aggressive investors might even consider shorting the sector given the recent run-up, as the downside seems relatively high given the risks ahead.”  

Ethanol stocks have indeed fared poorly this year. Ethanol suppliers Green Plains (NSDQ: GPRE) and Pacific Ethanol (NSDQ: PEIX) have dropped 35% and 49% year-to-date. So the advice to avoid or short ethanol stocks turned out to be right, but…

This week it was reported that President Trump personally intervened to prevent changes to the program that the EPA was preparing to make. The Hill said

“Trump, who had promised during the presidential campaign to support ethanol, intervened personally in the high-stakes matter this week. People close to the administration say the president went so far as to instruct Pruitt to back off on the potential changes.”

Ethanol companies haven’t rallied on the news. In fact, they are down across the board since the announcement was made. However, this news is bullish long-term for ethanol producers.

We’re #1!

Speaking of EPA Administrator Scott Pruitt, this week the Washington Post called him out for what it said “appears to be a deliberate effort to mislead the public.” In fact, I would argue that the Post got it wrong in this case.

The issue was a claim Pruitt made on Fox News that the U.S. is leading the world in reducing carbon dioxide emissions. 

According to the 2017 BP Statistical Review of World Energy, since 2005 annual U.S. carbon dioxide emissions have declined by 758 million metric tons. That is by far the most substantial decline of any country in the world over that time span.

By comparison, the second largest decline during that period was registered by the United Kingdom, which reported a 170 million metric ton decline. At the same time, China’s carbon dioxide emissions grew by 3 billion metric tons, and India’s increased by 1 billion metric tons.

Thus, I don’t think it’s the least bit misleading to claim that the U.S. is leading the world in reducing carbon dioxide emissions.

The thrust of the Washington Post’s criticism was that the U.S. is still one of the largest per capita emitters. That is true but beside the point. It doesn’t negate the fact that the U.S. has had the largest declines in the world. 

For a more detailed version of this story, including the reason the U.S. saw such a significant decline in emissions, see my latest article in Forbes.  

Tesla Completes a Solar Project

Following Hurricane Maria’s direct hit on Puerto Rico, Tesla (NSDQ: TSLA) CEO Elon Musk tweeted that Tesla’s battery technology could help Puerto Rico rebuild after the hurricane left the island’s power grid devastated. Puerto Rico Governor Ricardo Rossello responded to Musk, saying “let’s talk.”

Musk may not be able to rebuild Puerto Rico’s grid with renewable energy, but Tesla announced this week on Twitter that Hospital del Nino in Puerto Rico is the “first of many” projects going live. Tesla tweeted images showing solar panels and Tesla Powerpack units being installed.

This will be an interesting experiment, but a story this week in Vox highlights the overall challenges of rebuilding the grid there with renewable power. Notably, the story contains photos of a solar farm in Puerto Rico that was demolished by the hurricane, a reminder that solar power may be just as vulnerable to these storms. 

Follow Robert Rapier on Twitter, LinkedIn, or Facebook.


You might also enjoy…

 

Obscure Tax Law Forces This Company to Pay Out 90% of its Profits

A 50-year-old loophole is forcing one company to pay out $9 of every $10 it makes from ironclad contracts with the U.S. Government.

In fact, over the past seven years, it’s made payments ranging from a few dollars… to tens of thousands of dollars… 30 times. Without a single cut! 

Most folks don’t even know this company exists, but the ones that do are making a mint.

Like Ted B., who’s set to receive a check for $1,096 just a few days from now.

Merrill H., a 58-year-old from New York, has collected over $3,385 so far. 

And retirees Beth and Terry P. have raked in $16,555.

I’ve put together a special report that will give you all the details, including simple instructions on how to get your name on the payout list before the next cutoff date.

You can get your copy here.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.