TSXV Solar Stock Should Continue to Shine

Shares of UGE International Ltd. (TSXV:UGE) have surged more than 36%, and as much as 70%, since Capital Ideas first wrote about the company about two months ago

Capital Ideas Media | December 22, 2020 | SmallCapPower:  Solar energy stocks, much like other renewable energy equities, have been hot in 2020 as the cost of solar energy has drop by 89% over the past decade, according to asset management firm Lazard.

(Originally published on Capital Ideas Media on October 20, 2020)

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Solar, along with wind, have now become competitive with fossil fuels as an energy source, prompting utilities to increase their power generation from renewables (excluding hydro and nuclear) by 34% between 2016 and 2019, the U.S. Energy Information Administration estimates.

[Editor’s Note: Shares of UGE International have surged more than 36%, and as much as 70%, since Capital Ideas wrote about the company about two months ago.]

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Even oil giant BP said it will allow oil production to decrease by 40% over the next decade while investing $5 billion by 2030 in clean tech.

And, should the Democrats win control of the U.S. Presidency as well as the Senate in November this would be good news for renewable energy investors, as Joe Biden has pledged to create a green U.S. energy grid by 2035 and spend US$2 trillion on renewable energy infrastructure and clean-energy research and development over four years.

Indeed, the future appears bright for companies such as UGE International Ltd. (TSXV:UGE), a small Canadian provider of end-to-end commercial and community solar energy solutions, including financing, developing, and building. UGE International currently has projects in the United States, Canada, and the Philippines.

UGE has entered what it calls its “Profitable Growth” phase, after shedding unprofitable business units last year and focusing on recurring revenue and sustainable profitability for 2020 and beyond.

The Company currently has a project backlog of more than US$100 million after announcing US$21.5 million in new community solar projects in Maine last month.

UGE International investors should benefit from the Company’s tight capital structure – just 26.6 million shares outstanding, with more than 50% of those being held by insiders. UGE has a market cap of C$30.9 million.

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