Research

We periodically publish research reports on topics of interest to our clients. Click on the titles of the Research Reports to view the entire text.

Third Quarter 2007 (PDF)

Article 1. HamiltonClark EnergyTech Index. The Index is back up again, 29% for the first half of 2007, based principally on a 24% increase in crude oil.

Dan Blanchard, formerly a VP of Equity Research at CSFB has recently joined us to head our research efforts. Dan has decided to refresh the index, including a number of the Chinese solar companies. What’s important to see in this period, is that the momentum of the sector has outstripped crude oil price increases. With expectations of higher oil prices, this should bode well for the Index. Will the momentum be sustained?

Article 2. AIM Update. The AIM market has continued to perform well, gaining a bit over 16% since the start of 2007. Offerings have also been robust with 138 companies attracting £9.8 billion during the six-month period. Since our last publication 12 new energy tech companies have come to the market, raising £235 million.

Article 3. AIM or Other Junior Exchanges? Frankfurt and Toronto are now competing for energy tech offerings. Here’s why we still believe that AIM has some distinct advantages.

Article 4. The Theology of Climate Change. This article is a quick primer on how the major Judeo-Christian religions in the US are looking at climate change from the perspective of our summer analyst, a Religion major at Duke University. If 85% of Americans consider themselves “religious”, and the major religions are pushing a climate change agenda, might this affect the momentum of investing in the sector?

Fourth Quarter 2006 (PDF)

Article 1. There was an overall market correction in May 2006. Most indices experienced double digit declines during May and September. The HamiltonClark EnergyTech Index lost 31% of its value, the AIM market declined by 21% and crude oil dropped by 22%. What does this mean for investments in renewable energy and E&P activities? Maybe it’s time to invest.

Article 2. Biofuels are hot, but most of the large investments have been in corn ethanol projects. Thin film solar and battery technologies have attracted significant investments. Although industry experts report that cleantech investments in the first half of the year were in excess of $1 billion, we believe this number is skewed by large projects and non-energy technologies. What does this mean to those entrepreneurs looking to raise capital who are not in “sexy” sectors?

Article 3. General and limited partners of private equity firms are increasing embracing the efforts of the London AIM to ease the burden of small company IPOs. There is wide endorsement of AIM offerings both as an exit strategy and as a way to raise “B” and “C” rounds. For CEOs and CFOs of energy technology companies this is an important development.

Article 4. Corn ethanol and soybean biodiesel have launched the biofuels industry. However, we believe the future is in ethanol produced from energy crops like switchgrass and poplar, and biodiesel produced from dedicated energy crops and algae. The issue is scale and integration. Consequently, the old adage holds true … it will take longer and cost more.

First Quarter 2006 (PDF)

Article 1. The HamiltonClark EnergyTech IndexTM was up 34% during January-December 2005, out-performing both the NASDAQ and S&P500. The Index continues to correlates well with oil prices.

Article 2. With ten times more capital being sought by energy tech companies than available from institutional investors, there is intense competition for limited dollars. Those unable to raise capital may look at an M&A deal or resort to friends and family. Companies with professionally prepared and organized financing plans have a better chance of surviving this Darwinian outcome.

Article 3. It was a great year for energy tech companies on AiM. Almost £415 million was raised, with three unusually large financings totaling £264 million. Will energy tech continue to attract investor attention? Should U.S. energy tech companies look to the London market to raise the next round?

Article 4. As an SEC-registered broker-dealer we are constantly being asked “how do I actually raise capital privately in the U.S.” This note offers our best advice to early-stage energy technology executives about the policies and practices of the U.S. private placement market.

Fourth Quarter 2005 (PDF)

Article 1. The HamiltonClark EnergyTech IndexTM continues to perform exceedingly well compared to both the NASDAQ and S&P500. Year-to-date ending August 30, 2005, the Index was up 30%. The Index continues to track oil prices but for how long?

Article 2. Our annual survey of energy technology financing and interviews with CEOs and CFOs reveals that almost 80% of companies are seeking capital. Yet the supply side is still tight. Darwinian principles dictate that most of these plans will not get financed, leaving entrepreneurs to seek out friends and family or boot strap operations until positive cash flow.

Aeticle 3. The London Stock Exchange Alternative Investment Market (AiM) has attracted a significant number of energy technology companies in the last 24 months. How long will the AiM rally continue? Can US exchanges attract these companies? The American Stock Exchange (AMX) seems to be warming up to micro and small cap energy tech companies.

Article 4. With rising oil prices, petro-dollars may be looking for socially conscious, shar’ia compliant investment opportunities. Could private equity investments in energy technology offer an avenue for this large pool of money? A primer on Islamic finance.

Second Quarter 2005 (PDF)

Article 1. 69 publicly traded companies make up our new HamiltonClark EnergyTech Index™. This first of a kind index demonstrates better performance than the S&P500 or NASDAQ and a close correlation to oil prices. But will this performance continue?

Article 2. We believe that the tide has turned for energy technology investing. Many reasons, but finally things look positive. M&A will be the hot area. It should be a great two years.

Article 3. There are still more deals out there than there is money to invest. Energy Intelligence, Clean Technologies, and Power Generation technologies still make up the bulk of our database. But don’t forget to look at E&P technologies as oil prices hit a new plateau.

Article 4. A look at the Alternative Investment Market (AiM) of the London Stock Exchange. Why this has been a financing engine for so many energy tech companies. Companies should take proper aim before they launch on AiM.

Article 5. We have to look at the big picture. Neither renewable energy nor opening ANWR will solve our energy challenges. But both will contribute to the solution. Our problem is that we have an insatiable demand for imported oil and a growing reliance on natural gas and coal for electricity generation. Oil demand and a declining rate of new discoveries are putting upward pressure on prices and price volatility. At the same time we want to comply with Kyoto, even though we don’t have to. More energy for a growing worldwide economy, but the need to be better environmental stewards. Where is value likely to be created?

Fourth Quarter 2004 (PDF)

Article 1. An update of our database of energy technology companies shows that more companies are seeking financing. With an average of about $6 million per company, approximately $3.2 billion is being sought. Clean tech and energy intelligence are the largest sectors.

Article 2. The paltry number of exit events in the energy tech sector and essentially no IPO activity since 2000 has stressed many private equity portfolios. The reaction is to reduce valuations for new financing, re-start companies that have promising technology but no cash, and combine companies to create size. Better terms have recently been found on the London AiM.

Article 3. The author’s experience in senior management of four technology companies suggests a number of issues to consider when looking for the next round of financing. Cash management, leadership, employee buy-in, customer-relationship and professional documentation are on the top of the list.

Article 4. Many PV technologies are available today, each claiming to have better economics than the competition. This article views the industry from the eyes of an energy economist who believes that the value proposition to the end-user is the ultimate metric.

Second Quarter 2004 (PDF)

Article 1. A slicing and dicing of HamiltonClark’s database of energy technology companies shows a significant need for new funding on the demand side, with an increasingly diffuse investor base on the supply side.

Article 2. Private equity deal terms are not getting any easier. But the problems are not simple to fix, especially when venture capital funds are being judged on three to five year internal rates of return. Down rounds present enormous challenges to company boards.

Article 3. There are some great new technologies on the horizon that enhance efficiency in trucks and buses. A closer look at series, parallel and series-parallel hybrid drive systems. Also, auxiliary power is a natural with hybrids. Reduction in fuel consumption by up to 35%. Fact or fiction?

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