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Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<ul><li>The Energy Select Sector SPDR Fund (XLE) has underperformed the S&amp;P500 and Russell 2000 indices during 2024 (Fig 1).</li><li>The S&amp;P 500 has gained ~18%, outpacing the ~8% rise in the XLE and the ~6% rise in the Russell 2000.</li><li>The XLE’s 1H24 performance likely reflects oil prices trading in the $75 - $80/bbl band for much of the first six months of 2024 and natural gas prices which were negatively impacted by mild winter weather. </li></ul>

The Energy Select Sector SPDR Fund (XLE) has underperformed the S&amp;P500 and Russell 2000 indices during 2024 (Fig 1).The S&amp;P 500 has gained ~18%, outpacing the ~8% rise in the XLE and the ~6% rise in the Russell 2000.The XLE’s 1H24 performance likely reflects oil prices trading in the $75 - $80/bbl band for much of the first six months of 2024 and natural gas prices which were negatively impacted by mild winter weather. 

US Oil & Gas - Seeking a Balance Between Growth and Capital Returns to Shareholders

<ul><li>The WTR Sustainable Index was down 0.8% W/W versus the S&amp;P 500 Index (up 0.6%), the Russell 2000 Index (up 0.8%), and the Nasdaq Index (up 0.2%).</li><li>Energy Technology (14.5% of the index) was down by 3.0%, while Industrial Climate and Ag Technology (60.3% of the index) was up by 0.2%, ClimateTech Mining was down 5.3%, andAdvanced Transportation Solutions (19.6% of index) was down 2.6%.</li><li>Top 10 Performers: NRM, VIHD, OESX, FNI, DCFC, PNPN, SMR, <span style="font-size: var(--content-font-size);">LICY, ASYS, PSIX</span></li></ul>

The WTR Sustainable Index was down 0.8% W/W versus the S&amp;P 500 Index (up 0.6%), the Russell 2000 Index (up 0.8%), and the Nasdaq Index (up 0.2%).Energy Technology (14.5% of the index) was down by 3.0%, while Industrial Climate and Ag Technology (60.3% of the index) was up by 0.2%, ClimateTech Mining was down 5.3%, andAdvanced Transportation Solutions (19.6% of index) was down 2.6%.Top 10 Performers: NRM, VIHD, OESX, FNI, DCFC, PNPN, SMR, LICY, ASYS, PSIX

Sustainable Investing Surveyor - Focus on Spruce Power Holding Corporation (SPRU)

<ul><li>The WTR Sustainable Index was up 0.3% W/W versus the S&amp;P 500 Index (flat), the Russell 2000 Index (down 1.2%), and the Nasdaq Index (up 1.4%).</li><li>Energy Technology (14.3% of the index) was up by 11.0%, while Industrial Climate and Ag Technology (59.4% of the index) was up by 0.8%, ClimateTech Mining was down 6.0%, and Advanced Transportation Solutions (20.3% of index) was down 6.7%.</li><li>Top 10 Performers: VIEW, PEV, PEGY, LIDR, BRDS, VIHD, ARVL, CPWHF, BE, NXT</li></ul>

The WTR Sustainable Index was up 0.3% W/W versus the S&amp;P 500 Index (flat), the Russell 2000 Index (down 1.2%), and the Nasdaq Index (up 1.4%).Energy Technology (14.3% of the index) was up by 11.0%, while Industrial Climate and Ag Technology (59.4% of the index) was up by 0.8%, ClimateTech Mining was down 6.0%, and Advanced Transportation Solutions (20.3% of index) was down 6.7%.Top 10 Performers: VIEW, PEV, PEGY, LIDR, BRDS, VIHD, ARVL, CPWHF, BE, NXT

Weekly Sustainable Investing Surveyor - Week Ended May 24, 2024

<ul><li>The WTR Sustainable Index was up 1.6% W/W versus the S&amp;P 500 Index (flat), the Russell 2000 Index (up 1.2%), and the Nasdaq Index (up 1.5%).</li><li>Energy Technology (12.3% of the index) was down by 2.4%, while Industrial Climate and Ag Technology (59.3% of the index) was up by 4.4%, ClimateTech Mining was down 1.1%, and Advanced Transportation Solutions (22.3% of index) was down 3.3%</li><li>Top 10 Performers: LIDR, PNPN, PSIX, GCEI, EGT, MULN, IBAT, SLI, BLBD, ZEV</li></ul>

The WTR Sustainable Index was up 1.6% W/W versus the S&amp;P 500 Index (flat), the Russell 2000 Index (up 1.2%), and the Nasdaq Index (up 1.5%).Energy Technology (12.3% of the index) was down by 2.4%, while Industrial Climate and Ag Technology (59.3% of the index) was up by 4.4%, ClimateTech Mining was down 1.1%, and Advanced Transportation Solutions (22.3% of index) was down 3.3%Top 10 Performers: LIDR, PNPN, PSIX, GCEI, EGT, MULN, IBAT, SLI, BLBD, ZEV

Weekly Sustainable Investing Surveyor - Week Ended May 10, 2024

<ul><li>The WTR Sustainable Index was up down 3.9% W/W versus the S&amp;P 500 Index (down 3.0%), the Russell 2000 Index (down 2.8%), and the Nasdaq Index (down 5.4%).</li><li>Energy Technology (12.0% of the index) was down by 6.6%, while Industrial Climate and Ag Technology (58.1% of the index) was down by 2.2%, ClimateTech Mining was down 5.9%, and Advanced Transportation Solutions (23.4% of index) was down 6.7%.</li><li>Top 10 Performers: FSR, PNPN, VTNR, AMMP, TLO, WML, KNDI, GOEV, BMI, CRGE</li></ul>

The WTR Sustainable Index was up down 3.9% W/W versus the S&amp;P 500 Index (down 3.0%), the Russell 2000 Index (down 2.8%), and the Nasdaq Index (down 5.4%).Energy Technology (12.0% of the index) was down by 6.6%, while Industrial Climate and Ag Technology (58.1% of the index) was down by 2.2%, ClimateTech Mining was down 5.9%, and Advanced Transportation Solutions (23.4% of index) was down 6.7%.Top 10 Performers: FSR, PNPN, VTNR, AMMP, TLO, WML, KNDI, GOEV, BMI, CRGE

Weekly Sustainable Investing Surveyor - Week Ended April 19, 2024

United States

The Russell 2000 Index is comprised of the smallest 2000 companies in the Russell 3000 Index, representing approximately 8% of the Russell 3000 total market capitalization. The index was developed with a base value of 135.00 as of December 31, 1986.

Russell 2000 Index (RTY INDEX)

US Oil & Gas - Seeking a Balance Between Growth and Capital Returns to Shareholders

The Energy Select Sector SPDR Fund (XLE) has underperformed the S&P500 and Russell 2000 indices during 2024. The S&P 500 has gained ~18%, outpacing...

Water Tower Research

Sustainable Investing Surveyor - Focus on Spruce Power Holding Corporation (SPRU)

The WTR Sustainable Index was down 0.8% W/W versus the S&P 500 Index (up 0.6%), the Russell 2000 Index (up 0.8%), and the Nasdaq Index (up 0.2%).

Water Tower Research

Weekly Sustainable Investing Surveyor - Week Ended May 24, 2024

The WTR Sustainable Index was up 0.3% W/W versus the S&P 500 Index (flat), the Russell 2000 Index (down 1.2%), and the Nasdaq Index (up 1.4%).

Water Tower Research

Weekly Sustainable Investing Surveyor - Week Ended May 10, 2024

The WTR Sustainable Index was up 1.6% W/W versus the S&P 500 Index (flat), the Russell 2000 Index (up 1.2%), and the Nasdaq Index (up 1.5%).

Water Tower Research

Weekly Sustainable Investing Surveyor - Week Ended April 19, 2024

The WTR Sustainable Index was up down 3.9% W/W versus the S&P 500 Index (down 3.0%), the Russell 2000 Index (down 2.8%), and the Nasdaq Index (down...

Water Tower Research