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Three Toxic Stocks Destined for Doom

Written By Jason Williams

Posted May 20, 2022

I hope you enjoyed that special "sneak preview" of my article you got last night. Obviously, we had a few technical glitches in the back end here, but we've got them worked out thanks to a herculean effort by our IT department. So thanks for your patience, and here's the REAL article. I hope you enjoy it even more today. I'll talk to you soon.

— Jason

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 something.

And I started warning you of hard times to come nearly two years ago . So you’ve had ample time to prepare.

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 appetizing.

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 market.

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).

big tesla megapack fire

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 line.

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 1,550 megawatts.

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:

Hydro-Photo 2_Holtwood_tiny

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 make.

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 renewable energy…

A way that didn’t involve mining tons of lithium from the earth’s crust…

With a technology that can be applied anywhere on the planet…

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 spend.

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,


Jason Williams

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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; the editor of Alpha Profit Machine, an algorithmic trading service designed specifically for retail investors; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.