An article in the Financial Post on December 30, 2021 signaled the bloom may be off the rose in respect to the market price of renewable energy firms. While the article points to the drop in value of stocks in the European travel and tourism sector in 2021, they note green renewable energy stocks fared much worse with values dropping despite the Stoxx market hovering at record highs.
Vestas Wind Systems, the world’s largest manufacturer of industrial wind turbines saw their stock price fall by a third and for Siemens Gamesa Renewable their stock price fell by 37 per cent. The world’s largest offshore wind farm company Orsted A/S saw their market price fall 33 per cent. Despite the drop in the price of their shares however, they still trade at a high P/E (price/earnings) ratio.
Price Earnings Ratio “The P/E ratio is calculated by dividing the market value price per share by the company’s earnings per share. Earnings per share (EPS) is the amount of a company’s profit allocated to each outstanding share of a company’s common stock“
To put the foregoing in context Vestas P/E ratio is currently 32.9 meaning it would take that number of years before they generated the total EPS at their current market price. For Orsted A/S the P/E ratio is 44.2 and in Siemens case it doesn’t apply as they lost money in their latest reporting period.
Another “green” associated company whose stock market price has reached astronomical levels is Tesla the electric vehicle manufacturer. An article in the NY Times in late October stated the following:
“Tesla is worth more than virtually every other major carmaker in the world combined. Analysts are squarely of two minds about its current level. In the bull camp: Daniel Ives of Wedbush Securities, who tweeted yesterday, “Tesla hitting $1 trillion is just for starters.” In the bear camp: Craig Irwin of Roth Capital Partners, who wrote in a client note last week that Tesla’s stock — which then traded at 173 times next year’s earnings — was “egregiously overvalued.“ Based on the foregoing “bear camp” prophecy it is easy to understand why Elon Musk reportedly “offloaded US$16.4 billion worth of shares since early November.“ What is also surprising is that Tesla’s bond rating is still in the junk category at BB+!
With politicians from all of the developed world countries pushing to eliminate ICE (internal combustion engines) sales and endorsing EV (electric vehicle) sales however, they have directly impacted the price of Tesla’s shares. Their efforts to free the world of emissions from the transportation sector has made Musk the richest man in the world. Pretty sure he appreciates the work of the UNIPCC bureaucrats, eco-warriors and the “woke” politicians who helped him get to that pedestal!
What about the Covid-19 pandemic?
The other issue that surfaced just two years ago in the form of a “pandemic” has also presumably made rich people richer. As one example it’s worth noting Moderna’s stock price on March 1, 2020 was US$29.95 and now is US$234.70 for a gain of almost 700%. Pfizer Inc’s stock was trading at US$30.97 per share back on March 1, 2020 as the pandemic lockdowns hit and its current price is US$56.74 share so has almost doubled in less than 2 years.
Both the Moderna and Pfizer Covid-19 vaccines obviously played a hand in their increasing stock market value particularly as they are fully endorsed by the CDC (Center for Disease Control) whose spokesperson seems to be Dr. Anthony Fauci. Fauci presses the need to be vaccinated and get booster shots. He is the Chief Medical Advisor to the President so since the pandemic arrived, he has reached a position of power that is no doubt, the envy of every other bureaucrat in the USA and elsewhere.
Who owns Moderna, Pfizer and Tesla?
It is an interesting exercise to quickly look at some of the major shareholders of both Moderna, Pfizer and Tesla and it is fascinating to discover the names amongst the “top ten” shareholders. Those in the top 10 list of shareholders for Tesla, Moderna and Pfizer include BlackRock, SSgA (State Street Global Advisors) and Vanguard. Fidelity Management are among the 10 largest shareholders of both Moderna and Tesla.
At this point it is worth knowing all four of the above “asset managers” are co-incidentally also members of the Net Zero Asset Managers Initiative which happens to be an outgrowth of GFANZ (Glasgow Financial Alliance for Net Zero). GFANZ is where Mark Carney, former Governor of the Bank of England is the Chair and Michael Bloomberg is Co-chair. Larry Fink, Chairman and CEO of BlackRock is also listed as a Principal of GFANZ!
Surely the foregoing connections are all co-incidental and those entities, the rich and famous guiding them and represented under the GFANZ umbrella are simply out to save the world from “climate change” while protecting us “commoners” from the perils of both that happening and the pandemic that arrived two years ago!
Someone is making money from both of the concepts of “climate change” (formerly referred to as “global warming”) and the Covid-19 pandemic and based on the above cursory review it would appear to be many of those amongst the elites and super rich.
Perhaps some of the less naïve politicians around the world are also benefitting too but that would require some serious investigation into the possible “conflict of interest” issues they are supposed to abstain from once they are elected!