Here’s our Club Mailbag email investingclubmailbag@cnbc.com — so you send your questions directly to Jim Cramer and his team of analysts. We can’t offer personal investing advice. We will only consider more general questions about the investment process or stocks in the portfolio or related industries. Question 1: The stocks in the Trust have astonishingly different P/Es. With this in mind, how can a price target be established for each of them? Thank you. I find the Club to be fascinating. —Marc M. Price targets are part art and part science. While the art portion can be more subjective at times, the most important thing to keep in mind when thinking about the correct multiple to put on a stock is the “comp,” meaning the thing we are comparing that stock to. The two primary comps are going to be the peer group (those companies most similar to the one in question) and the multiple investors paid in the past. What we don’t want to do is think about what the appropriate multiple should be by examining companies that don’t represent an apples-to-apples comparison. A stock’s multiple (and we like looking at the forward multiple) is calculated by dividing the current shares price by earnings estimates for the next 12 months. For example, we wouldn’t look at the multiple investors are willing to pay for Club stocks Pioneer Natural Resources (PXD) or Coterra Energy (CTRA) in an attempt to determine the correct multiple for Microsoft (MSFT). We would have to consider the multiples of Pioneer and Coterra in regard to one another (and other U.S.-based exploration and production companies) because both are U.S.-based exploration and production (E & P) companies. We would then consider whether one should or should not demand a higher or lower multiple versus the other. Based on our price targets of $259 for PXD and $30 for CTRA, the forward P/E multiple that we think represents fair value is roughly 12 times for PXD and roughly 11 times for CTRA. That’s below what investors have paid for PXD over the last five years and about in line with what they’ve paid for Coterra in that time frame. Based on our price target of $400 for MSFT, the forward P/E we think represents fair value is about 33 times. That’s several turns above the historic average, but we think it’s justified given the opportunity generative AI represents for Microsoft to charge customers more for their software to help them reduce costs, thanks to the efficiency gains these AI offerings can bring about. Like most investors, we are willing to pay more for the high-growth potential that we see in tech, whereas an oil name investment thesis is more income-oriented via dividends and stock buybacks. Once we have an idea of what these multiples are, we can begin to make adjustments based on the merits of the company in question versus what peers have going for them or what the company looked like in the past. It’s also worth watching the overall market’s multiple to see how much of a premium or how much of a bargain the stock in question may be. As of this writing, the forward P/E on the S & P 500 was just over 19 times. For further reading on how to determine an appropriate price target based on multiples, check out our commentary dedicated to the process. Question 2: If I am just starting with the Investment Club and have some money to invest, how do I achieve a balanced portfolio that mirrors the Investment Club’s? Do I just purchase stocks with a 1 rating, but then I am not balanced through all sectors? Thanks, Brian The last part of the question is exactly why our general rule of thumb, for those just getting started, is that the first $10,000 should go into a diversified index fund, such as an S & P 500 index fund. This will ensure diversification from the very start of your investing journey. From there, you are correct: start looking for 1-rated Club holdings to augment your portfolio. (That information can be found on our portfolio page .) Our “1 rating” is our way of communicating to members that in the current market landscape, a stock is a buy at current levels. Keep in mind that on any given day, there could be big price swings, so our daily commentary should take priority over our ratings as it will always be more real-time in nature. (We provided additional thoughts on how to go about the research and how to start adding names.) That said, as you add names, you will of course be altering the makeup of your portfolio in terms of sector exposure. So, be sure to remain mindful of the sector breakdown of any ETFs or index funds you already own. (Here’s a breakdown of the S & P 500’s sector weighting .) Another thing we would add: We generally advise individual investors to own no more than five to 10 stocks. That’s because it takes about one hour of homework per day, per stock to keep on top of your positions. We have Jim Cramer and two analysts and a team of reporters and editors covering the 30 some stocks in the Club portfolio. Unless you are looking for a second job, five to 10 hours per week of homework feels about right for most investors. A follow-up question that sometimes comes up is: “I own five stocks but don’t feel comfortable with any single stock being in excess of 10% of my portfolio. How do I reconcile this if I don’t want to be 50% in cash?” It’s a valid concern and to reconcile these views — wanting to be more invested but not own more names due to the time commitment and not wanting to be so heavy in cash — we would point you right back to that S & P 500 index holding. We say $10,000 as a starting point to ensure diversification from the start. That said, you can always allocate more funds to that position as a means of putting more money to work in a more passive way without feeling the need to increase individual stock exposure beyond a comfortable level. For example, you may opt to hold five individual stocks at 10% each and an S & P 500 index fund at 40%. Then your equity portfolio would be 90% invested and the rest could be cash. To be clear, this is not a recommendation on portfolio allocation, only an example of how one may use an index fund to get more money to work in a more passive way while maintaining a more actively invested portion of your portfolio. Question 3: When trimming shares to take some profits, is it typically more profitable over time, to trim the shares with a low-cost basis or a high-cost basis? Sincerely, Donna M. The concern with which lots one should sell isn’t so much about profits as it is about tax implications. The Club is a Charitable Trust and is, therefore, required to distribute all portfolio income and realized capital gains to qualified publicly supported charitable organizations. As a result, we stick to the default sales method first-in, first-out, or FIFO. This means that the oldest shares are going to be the first ones sold. That said, for most investors not trading in a tax-advantaged account, a sale is going to have some kind of tax implication based on the profits realized or the loss taken with the sales. While we can’t get into too much detail (as we cannot offer individual investing advice), remember that long-term capital gains rates on stocks owned for more than 1 year differ from short-term capital gains rates on stocks owned for less than 1 year, which are taxed as income. So, remember that if your goal is to raise cash, your concern shouldn’t be so much about which lots you can sell in order to realize more profits, it should be about which lot you can sell while paying the least in taxes. If you’ve got a position that you are up on overall but within which there are lots that are losers and your goal is to trim that position, you may even consider selling the losers in order to tax loss harvest. That’s all we can really offer up on the matter as anything beyond this would best be discussed with your accountant as they will know what is best given your own unique circumstances. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Here’s our Club Mailbag email investingclubmailbag@cnbc.com — so you send your questions directly to Jim Cramer and his team of analysts. We can’t offer personal investing advice. We will only consider more general questions about the investment process or stocks in the portfolio or related industries.
Question 1: The stocks in the Trust have astonishingly different P/Es. With this in mind, how can a price target be established for each of them? Thank you. I find the Club to be fascinating. —Marc M.
On Inauguration Day, President Donald Trump issued an executive order indefinitely halting permits for new onshore wind energy projects on federal land, as well as new leases for offshore wind farms in U.S. coastal waters. The action not only fulfilled Trump’s “no new windmills” campaign pledge, but struck yet another blow to the wind industry, which has been hit hard over the past few years by supply chain snags, price increases upending project economics, public opposition and political backlash against federal tax credits, especially those spurring the fledgling offshore wind sector.
Nonetheless, the nation’s well-established onshore wind industry, built out over several decades, is generating nearly 11% of America’s electricity, making it the largest source of renewable energy and at times last year exceeding coal-fired generation. On April 8, the fossil-fuels-friendly Trump administration took measures to bolster coal mining and power plants, but as the infrastructure driving wind energy ages, efforts to “repower” it are creating new business opportunities for the industry’s key players.
This repowering activity has emerged as a bright spot for the wind industry, giving a much-needed boost to market leaders GE Vernova, Vestas and Siemens Gamesa, a subsidiary of Munich-based Siemens Energy. Following several challenging years of lackluster performance — due in particular to setbacks in both onshore and offshore projects — all three companies reported revenue increases in 2024, and both GE Vernova and Siemens stock have moved higher.
GE Vernova, spun off from General Electric a year ago, led overall onshore wind installations in 2024, with 56% of the U.S. market, followed by Denmark’s Vestas (40%) and Siemens Gamesa (4%).
Stock Chart IconStock chart icon
GE Vernova stock performance over the past one-year period.
According to the U.S. Energy Information Administration, installed wind power generating capacity grew from 2.4 gigawatts (GW) in 2000 to 150.1 GW as of April 2024. Although the growth rate for launching new greenfield onshore wind farms has slowed over the last 10 years, the U.S. is still poised to surpass 160 GW of wind capacity in 2025, according to a new report from energy research firm Wood Mackenzie.
There currently are about 1,500 onshore wind farms — on which more than 75,600 turbines are spinning — across 45 states, led by Texas, Iowa, Oklahoma, Illinois and Kansas. Virtually all of the wind farms are located on private land, and many of the largest ones are owned and operated by major energy companies, including NextEra Energy, RWE Clean Energy, Pattern Energy, Clearway Energy, Xcel Energy and Berkshire Hathaway‘s MidAmerican Energy, which generates 59% of it renewable energy from wind, including 3,500 turbines operating across 38 wind projects in Iowa.
A growing number of the turbines are 20-plus years old and nearing the end of their lifecycle. So increasingly, operators have to decide whether to upgrade or replace aging turbines’ key components, such as blades, rotors and electronics, or dismantle them altogether and erect new, technologically advanced and far more efficient models that can increase electricity output by up to 50%.
“What’s becoming clear is that more and more of the U.S. installed base [of onshore turbines] has exceeded its operational design life,” said Charles Coppins, research analyst for global wind at Wood Mackenzie, “and now operators are looking to replace those aging turbines with the latest [ones].”
To date, approximately 70 GW of onshore wind capacity has been fully repowered in the U.S., according to Wood Mackenzie, while an additional 12 GW has been partially repowered. The firm estimates that around 10,000 turbines have been decommissioned and that another 6,000 will be retired in the next 10 years, Coppins said.
Damaged wind turbine that was first hit by a tornado then lightning.
Ryan Baker | Istock | Getty Images
Beyond the fact that aged-out turbines need to be upgraded or replaced, repowering an existing wind farm versus building a new site presents economic benefits to operators and OEMs. To begin with, there’s no need to acquire property. In fact, in certain situations, because today’s turbines are larger and more efficient, fewer turbines are needed. And they’ll generate additional electricity and have longer lifecycles, ultimately delivering higher output at a lower cost.
Even so, “there are some limitations on how much capacity you could increase a project by without having to go through new permitting processes or interconnection queues” to the power grid, said Stephen Maldonado, Wood Mackenzie’s U.S. onshore analyst. As long as the operator is not surpassing the allowed interconnection volume agreed to with the local utility, they can add electricity to the project and still send it to the grid.
Public opposition, Maldonado said, may be another hurdle to get over. Whether it’s a new or repower wind project, residents have expressed concerns about environmental hazards, decreased property values, aesthetics and general anti-renewables sentiment.
RWE, a subsidiary of Germany’s RWE Group, is the third largest renewable energy company in the U.S., owning and operating 41 utility-scale wind farms, according to its CEO Andrew Flanagan, making up 48% of its total installed operating portfolio and generating capacity, which also includes solar and battery storage.
One of RWE’s two repower projects underway (both are in Texas), is its Forest Creek wind farm, originally commissioned in 2006 and featuring 54 Siemens Gamesa turbines. The project will replace them with 45 new GE Vernova turbines that will extend the wind farm’s life by another 30 years once it goes back online later this year. Simultaneously, RWE and GE Vernova are partnering on a new wind farm, immediately adjacent to Forest Creek, adding another 64 turbines to the complex. When complete, RWE will deliver a total of 308 MW of wind energy to the region’s homes and businesses.
Flanagan noted that the combined projects are related to increased electricity demands from the area’s oil and gas production. “It’s great to see our wind generation drive the all-of-the-above energy approach,” he said. What’s more, at its peak, the repower project alone will employ 250 construction workers and over its operating period bring in $30 million in local tax revenue, he added.
In turn, the twin projects will support advanced manufacturing jobs at GE Vernova’s Pensacola, Florida, facility, as well as advancing the OEM’s repower business. In January, the company announced that in 2024 it received orders to repower more than 1 GW of wind turbines in the U.S.
Koiguo | Moment | Getty Images
Siemens Gamesa has executed several large U.S. repowering projects, notably MidAmerican’s expansive Rolling Hills wind farm in Iowa, which went online in 2011. In 2019, the company replaced 193 older turbines with 163 higher-capacity models produced at its manufacturing plants in Iowa and Kansas.
Last year, Siemens Gamesa began repowering RWE’s 17-year-old Champion Wind, a 127-MW wind farm in West Texas. The company is upgrading 41 of its turbines with new blades and nacelles (the housing at the top of the tower containing critical electrical components) and adding six new turbines.
In early April, Clearway announced an agreement with Vestas to repower its Mount Storm Wind farm in Grant County, West Virginia. The project will include removing the site’s 132 existing turbines and replacing them with 78 new models. The repower will result in an 85% increase in Mount Storm’s overall electricity generation while using 40% fewer turbines.
Preparing for ‘megatons’ of turbine recycling and tariffs
Another benefit of repowering is invigorating the nascent industry that’s recycling megatons of components from decommissioned turbines, including blades, steel, copper and aluminum. Most of today’s operational turbines are 85% to 95% recyclable, and OEMs are designing 100% recyclable models.
While the majority of mothballed blades, made from fiberglass and carbon fiber, have historically ended up in landfills, several startups have developed technologies recycle them. Carbon Rivers, for example, contracts with the turbine OEMs and wind farm operators to recover glass fiber, carbon fiber and resin systems from decommissioned blades to produce new composites and resins used for next-generation turbine blades, marine vessels, composite concrete and auto parts.
Veolia North America, a subsidiary of the French company Veolia Group, reconstitutes shredded blades and other composite materials into a fuel it then sells to cement manufacturers as a replacement for coal, sand and clay. Veolia has processed approximately 6,500 wind blades at a facility in Missouri, and expanded its processing capabilities to meet demand, according to David Araujo, Veolia’s general manager of engineered fuels.
Trump’s new-project moratorium isn’t his only impediment to the wind industry. The president’s seesaw of import tariffs, especially the 25% levy on steel and aluminum, is impacting U.S. manufacturers across most sectors.
The onshore wind industry, however, “has done a really good job of reducing geopolitical risks,” said John Hensley, senior vice president for markets and policy analysis at the American Clean Power Association, a trade group representing the clean energy industry. He cited a manufacturing base in the U.S. that includes hundreds of plants producing parts and components for turbines. Although some materials are imported, the investment in domestic manufacturing “provides some risk mitigation to these tariffs,” he said.
Amidst the headwinds, the onshore wind industry is trying to stay focused on the role that repowering can play in meeting the nation’s exponentially growing demand for electricity. “We’re expecting a 35% to 50% increase between now and 2040, which is just incredible,” Hensley said. “It’s like adding a new Louisiana to the grid every year for 15 years.”
GE Vernova CEO Scott Strazik recently told CNBC’s Jim Cramer that the growth of the U.S.’s electric load is the largest since the industrial boom that followed the end of the second world war. “You’ve got to go back to 1945 and the end of World War II, that’s the infrastructure buildout that we’re going to have,” he said.
As OEMs and wind farm developers continue to face rising capital costs for new projects, as well as a Trump administration averse to clean energy industries, “repowering offers a pathway for delivering more electrons to the grid in a way that sidesteps or at least minimizes some of the challenges associated with all these issues,” Hensley said.
Capable of delivering up to 1,200 kW of power to get electric commercial trucks back on the road in minutes, the new ABB MCS1200 Megawatt Charging System is part of an ecosystem of electric vehicle supply equipment (EVSE) that ABB’s bringing to this year’s ACT Expo.
ABB E-mobility is using the annual clean trucking conference to showcase the expansion of its EVSE portfolio with three all-new charger families: the field-upgradable A200/300 All-in-One chargers, the MCS1200 Megawatt Charging System for heavy-duty vehicles shown (above), and the ChargeDock Dispenser for flexible depot charging.
The company said its new product platform was built by applying a computer system-style domain separation to charger design, fundamentally improving subsystem development and creating a clear path forward for site and system expansion. In other words, ABB is selling a system with both future-proofing and enhanced dependability baked in.
“We have built a system by logically separating a charger into four distinct subsystems … each functioning as an independent subsystem,” explains Michael Halbherr, CEO of ABB E-mobility. “Unlike conventional chargers, where a user interface failure can disable the entire system, our architecture ensures charging continues even if the screen or payment system encounters issues. Moreover, we can improve each subsystem at its own pace without having to change the entire system.”
Advertisement – scroll for more content
The parts of ABB’s new EVSE portfolio that have been made public so far have already been recognized for design excellence, with the A400 winning the iF Gold Award and both the A400 and C50 receiving Red Dot Design Awards.
New ABB chargers seem pretty, good
ABB’s good-looking family; via ABB.
ABB says the systemic separation of its EVSE enhances both reliability and quality, while making deployed chargers easier to diagnose and repair, in less time. Each of the chargers’ subsystems can be tested, diagnosed, and replaced independently, allowing for quick on-site repairs and update cycles tailored to the speed of each systems’ innovation. The result is 99% uptime and a more future-proof product.
“The EV charging landscape is evolving beyond point products for specific use cases,” continued Halbherr. “By implementing this modular approach with the majority of our R&D focused on modular platforms rather than one-off products … it reduces supply chain risks, while accelerating development cycles and enabling deeper collaboration with critical suppliers.”
Key markets ABB is chasing
HVC 360 Charge Dock Dispenser depot deployment; via ABB.
PUBLIC CHARGING – with the award winning A400 being the optimal fit for high power charging from highway corridors to urban locations, the latest additions to the A-Series All-in-One chargers offer a field-upgradable architecture allowing operators to start with the A200 (200kW) with the option to upgrade to 300kW or 400kW as demand grows. This approach offers scalability and protects customer investment, leading to Total Cost of Ownership (TCO) savings over 10 years.
PUBLIC TRANSIT AND FLEET – the new Charge Dock Dispenser – in combination with the already in market available HVC 360 – simplifies depot charging with a versatile solution that supports pantograph-, roof-, and pedestal charging options with up to 360kW of shared power and 150m/490 ft installation flexibility between cabinet and dispensers. The dispenser maintains up to 500A output.
HEAVY TRUCKS – building the matching charging infrastructure for commercial vehicles and fleets represents a critical innovation frontier on our journey to electrify transportation. Following extensive collaboration with industry-leading truck OEMs, the MCS1200 Megawatt Charging System delivers up to 1,200kW of continuous power — 20% more energy transfer than 1MW systems — providing heavy-duty vehicles with purpose-built single-outlet design for the energy they need during mandatory driver breaks. To support other use cases, such as CCS truck charging, a dual CCS and MCS option will also be available.
ABB says that the result of its new approach are chargers that offer 99% plus uptime — a crucial statistic for commercial charging operations and a key factor to ensuring customer satisfaction. The new ABB E-mobility EVSE product family will be on display for the first time at the Advanced Clean Transportation Expo (ACT Expo) in Anaheim, California next week, then again at Power2Drive in Munich, Germany, from May 7-9.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links.More.
Along with Tennessee Tech, Tennessee-based ultralight aircraft company Whisper Aero has secured a $500,000 grant to help advance the company’s innovative electric jet motor concept off the drawing board and onto the testing phase.
Earlier this month, the Tennessee Department of Economic and Community Development (TNECD) announced plans to award $500,000 to Tennessee Tech and Whisper Aero through the Transportation Network Growth Opportunity (TNGO) initiative.
“We look forward to using these award dollars to place students in internships working directly with Whisper Aero leaders,” said Tennessee Tech President Phil Oldham. “By learning from an electric propulsion innovator like Whisper Aero, our students will gain invaluable perspective and can take what they have learned in the classroom and apply it right here in Tennessee.”
The grant will see a Whisper Aero glider fitted with a pair of the company’s eQ250 electric-powered jet “propulsors” for UltraQuiet flight. Tennessee Tech faculty and students will carry out copper-bird ground testing to ensure the safe integration of engines, batteries, and controllers, and kickstart Tennessee Tech’s new Crossville Mobility Incubator.
Whisper Aero’s main claim to fame is its innovative UltraQuiet WhisperDrive (above). It’s effectively an electrically spun ducted fan jet engine that uses a large number of stiff composite fan blades inside a lightweight, acoustically treated duct. With so many blades, the Whisper Aero propulsor can push more air than a conventional prop while spinning much more slowly. As such, the “blade passage frequency” moves up to more than 16,000 Hz – outside the range of most human hearing but not, supposedly, high enough to freak out the beagles.
The Whisper Aero ultralight is effectively an Aériane Swift3 glider fitted with a pair of Whisper’s eQ250 propulsors, each capable of up to 80 lbs. of thrust. The Ultralight has a wingspan of over 40 ft with a maximum L/D of 35:1 and can be stressed to a design loading of +6/-4g, making it capable of some pretty impressive acrobatic feats.
The Swift3 glider is designed for a low speed, low power cruising speed of 45–55 knots with “just” 6.5 hp. Power-off glides from a few hundred feet showed a low sink rate, and a climb rate of 1,250 ft/min with full self-launching power (in other words: the Whisper glider doesn’t have to be towed by a launch vehicle, like a conventional ultralight glider).
Quiet cool
Dual WhisperDrive fans deliver ~160 lbf of thrust; via Whisper Aero.
Range under full power is about 109 miles with current battery tech, but it’s expected that range under the latest EPiC 2.0 energy batteries would rise to nearly 170 miles.
Nathan Millecam, CEO of Electric Power System, said, “EPiC 2.0’s leap in energy density and thermal performance has enabled a significant increase in range, a clear validation of our next-gen cell technology. We are impressed by what the Whisper team continues to achieve in advancing electric aviation.”
The press release concludes explaining that flight tests are expected to show that the Whisper Aero glider can be flown, “a few hundred feet away from neighborhoods without any disturbances, while carrying a 220 lbs. payload with full range,” which is all kind of ominous in today’s political climate, but still pretty neat from a purely tech perspective.
With support from TNECD’s Transportation Network Growth Opportunity (TNGO) initiative, Tennessee Tech University and Whisper Aero are partnering to advance next-generation propulsion technology in the aerospace industry. This collaboration will enhance aerospace research and workforce development, ensuring Tennessee remains a leader in cutting-edge mobility solutions.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links.More.