3 Toxic Stocks Destined for Doom
And the one company that could save them all…
In a market like the one we’ve been in the past few months,
there are a lot of companies’ stocks that are sitting on very thin ice.
Historical stimulus and easy-money conditions led to
massively inflated valuations across the board on Wall Street.
Some perma-bears were calling it the “Everything Bubble,”
because everything seemed way too expensive.
A lot of people laughed at them. I did at first. But then I
looked under the hood a little more and realized they might just be onto
But today, in case you’re still holding onto any of these
potentially toxic stocks, I want to get even more specific.
In the past, I’ve talked about sectors and industries I
expect to do well. I’ve talked about whole asset classes that look very
But today, I’m going one step further and naming names.
Because these three companies have been flying high, but
unless they completely change the way they do business, they’re destined to
fall even more than the rest of the
Toxic Stock #1
First up is a stock that might just surprise you…
It’s one of the biggest names in the world of clean energy.
And it was the first renewable energy-focused company to overtake a major oil
stock in market capital.
It is also the largest operator of electric utilities in the
United States. And that’s why I bet you’re surprised to see it here.
Traditionally, utility stocks were the favored investments
of “widows and orphans,” because they’re not incredibly volatile and they pay
cash distributions in the form of dividends.
You see, this electric utility manages a vast network of
wind turbines and solar panel farms to generate electricity. And those projects
are all expected to expand.
But the rub with that kind of electricity is that it must
be used the instant it’s created. And if you don’t need it right then, you can
either store it or lose it forever.
And right now, the only good option for storing that energy is in gigantic stadium-sized lithium-ion batteries.
But the problem with those lithium batteries is multi-pronged:
- They’re massive so you need an extra football field worth of space to install one.
- They’re incredibly expensive and go for tens of millions just to get one big enough to power a few thousand homes.
- They’re prone to explosion and sometimes don’t even make it through testing before they blow up.
In fact, the world’s largest lithium-ion battery storage
site burst into flames this year (for the second time since last September).
And the latest fire (that took out about 10 million-dollar
batteries) all started from a faulty ball bearing in a fan somewhere up the
And that’s why my first toxic stock to drop is NextEra
Energy (NYSE: NEE).
If it doesn’t figure out a better, more efficient, and safer
way to store its renewable electricity, it’s destined to go up in flames just
like those mega-expensive battery packs.
Toxic Stock #2
Next up on the list is another stock that’s inextricably
linked with renewable energy in the United States.
In fact, it’s one of the leading generators of electricity
through wind and solar projects across the country.
It’s got solar and wind projects across 26 states and is
still developing more. And its goal is to provide clean power to its customers
at a low cost.
But again, it’s running into the same issues as our first
toxic stock: It’s great at generating that energy, but it’s got terrible
options for storing it.
It’s a partial owner of the largest wind farm in the U.S., the
Alta Wind Energy Center (AWEC) in California. That site can generate a whopping
But if that energy isn’t needed the second it’s produced,
it’s either lost forever or stored for later.
And again, the best thing they’ve come up with isn’t that
great: It’s big, expensive, and dangerous.
This company hasn’t had any explosions just yet, but give it
a little time and I’m sure you’ll see sparks.
When investors realize that, they’re likely to cut its
valuation in half. And that’s why Clearway Energy (NYSE: CWEN) is my second
toxic stock to drop.
Toxic Stock #3
Are you starting to sense a pattern here? So far, both of
these stocks belong to companies that rode the wave of ESG investing and happy
thoughts to ridiculous valuations.
But they’ve both got a critical fault in their business
model that’s no fault of their own. Neither Clearway nor NextEra actually make
those batteries they’re forced to rely on.
And neither does this company. But fortunately for its
investors, it doesn’t only rely on batteries to store its energy.
That puts it on the right track to save itself and its
investors, but it’s going to need help along the way.
You see, this company stores the majority of the energy it
generates in hydropower systems like massive reservoirs behind equally massive
dams like this one:
If you remember from last Friday, that’s actually how 96% of
the world’s energy is stored.
But there are only so many places you can put a dam or a reservoir.
You’ve literally got to flood an entire valley to make one.
So while this company had the right idea by refusing to
rely on big, expensive, dangerous lithium batteries, it’s quickly running out
of space to build more storage.
And if it can’t figure out a better way to save that energy
it’s generating through those renewable projects, investors are going to dump
its stock as fast as they can.
That’s why Brookfield Renewable Partners (NYSE: BEP) is my
third toxic stock to drop before the next market drop.
There’s Still Hope
But the thing is, those are only stocks I’d drop IF they
don’t start to make a change. In times like this, the only companies that will
survive are the ones that can pivot.
And all three of those companies need to make a BIG pivot if
they hope to hold onto those luxury valuations.
But there’s still hope for all three of them. Brookfield is
probably the farthest ahead of the pack, but even it has a lot of changes to
And I’ve pinpointed the ONE company that can help them ALL make
that a reality.
You see, instead of focusing on making renewable energy like
NextEra, Clearway, and Brookfield, this company’s spent its entire existence
figuring out better ways to STORE that energy.
The engineers helping develop its technology saw the problems plaguing the energy storage market.
The solutions offered either weren’t that good or were
dangerous as all get-out.
So they set out to develop a better way to store that
A way that didn’t involve mining tons of lithium from the
With a technology that can be applied anywhere on the
Using a resource that surrounds us all the time (and that’s
100% FREE for anyone to use).
And they finally did the impossible and created an energy
storage system without any of the hazards posed by lithium batteries.
Under the Radar
But the thing is that this company is still flying right
under the radar of almost every investor out there.
They don’t realize that the future of batteries has nothing
to do with Elon Musk, Tesla, or lithium at all.
So they’ve looked right past
this incredible opportunity to
corner the energy storage market.
But I’m hoping you won’t be one of them. I’m hoping you’ll
take my advice and get yourself invested now, while the market is ignoring and
discounting the shares.
And I’m hoping you’re one of the new generation of
millionaires I expect this company to mint.
So take a little time out of your day right now and check out the incredible opportunity I’ve uncovered.
It could easily be the most profitable time you’ll ever
And keep an eye out for my emails and articles because I’ll
be back soon with more ways for you to take advantage of the disconnects this
turbulent market is creating.
To your wealth,
After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter, the founder of Future Giants, a nano cap investing service, and authors The Wealth Advisory income stock newsletter. He also contributes regularly to Wealth Daily. To learn more about Jason, click here.
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