YOUR WEEKEND ALTERNATIVE, GREEN CLEAN ENERGY UPDATE
I haven’t issued a clean, green update in quite a while. Distracted by other areas. But watching my IRA consistently grow – holding almost only alternative, clean, green stocks -- in spite of today’s iffy stock market makes me desire to get back to this bullish trend. To refresh regular readers and/or to prep new readers, let me reiterate I’ve detected a critical mass now built worldwide to back any/all alternatives to using oil and coal; dirty fuels in general. Obviously one goal is to get energy prices down for the long run, a critical need to boost, not drag on, future global economic growth. But secondly, to change the awful, long established pattern of funding many of our stated enemies, rogue governments and terrorism in general by buying what they have; OIL! And thirdly, of course, to change another long-entrenched, bad habit trend of polluting and killing off planet Earth. I mean Earth is our home after all and we’re ruining it at an accelerating pace. So today we have at least three solid reasons to get rid of using oil as our power source; (1) price, (2) to win a war and (3) to live up to the responsibility of the custodianship of the planet, to leave our kids something livable. Any one of these reasons alone should be reason enough to change.
Moving on, my constant reading of investment information shows most everyone is lined up behind this goal of powering the world going forward by using clean energy sources. Businesses, governments, scientists, venture capitalists, individuals, governments, just about everyone except for President Bush and a few blinkered, therefore almost blind, “business first at all costs” advocates like the publishers of The New York Post and Investor’s Business Daily (the two primary papers I read daily; it’s awful their nearsightedness!). But “the trend is our friend” in this vital, critical global challenge, finally! As opposed to back in the 1970s when the world wasn’t worried about, there was no issue with, global warming. And we can certainly make this massive changeover! We switched from wood to oil. We build railroads from coast to coast. We invented and implemented electricity and telephones and the Internet. We now have indoor plumbing. We moved from horse and buggy to cars. And on and on. So there’s no doubt we can stop using oil and coal to power ourselves. We just need some real leadership to do so. Even without that leadership almost every day I see step by step progress being made. This morning, it’s a story about how big companies like Google, Chevron and Goldman Sachs are betting big and building solar power mirrors in the Mojave Desert to power Southern California.
What brings me to today’s investment tie in and idea. That is for investors to follow my tack since it’s proving so successful. That is to buy a little of each alternative, clean green energy company one can. And I don’t mean just the solar companies. Sure they’ve had a big boom and are therefore now on everyone’s radar screens. First Solar (FSLR) is up 885% since I first began this alternative energy theme back in December 2006. SunPower (SPWR) is still up 125% over the same time frame, after being up 287% at its peak. Most other solar stocks have soared as well and stolen all the attention. And I would still own these stocks, buying them on weakness anytime. The news almost consistently is great and when some glitch does comes along, like the last couple days in Solarfun (SOLF), it goes back on the shopping list to buy.
But this morning I want to raise a clarion call for investors to not forget or overlook the rest of the alternative, clean green energy stock complex. While solar and wind get all the attention there are plenty of other technologies and ideas out there and likely the real long term solution to our three –pronged, and now critical, problem with (1) the high price of energy, (2) paying our enemies for their oil and (3) to cleaning up the planet before it’s too late, will come out of somebody’s garage like Microsoft, Google and others did. Thus I would buy little pieces – no one can predict which individual company – of battery technology, natural gas for cars, electric motors, power electronics, fuel cell tech, meter reading, distributed generation, etc., etc., etc. I don’t mean to profess I deeply understand these technologies but I do know there’s lots and lots of companies in this space.
I won’t give you a list of the exact 15 or so companies I own in my IRA today. For fear of conflict of interest. But I plan to rerun the full list of alternative energy companies I used to run when I first started writing about this theme back in December 2006. And update it to include many more companies I’ve found since. For today, suffice it to say, almost daily, the news from these companies is bullish. One day it’s a signed contract to provide services or products. Another day it’s a report about how strongly revenue growth is occurring. Another day it’s about how much money venture capitalists are pouring into discovering some new energy source. Another day it’s Governor Schwarzenegger saying the changeover to clean energy will provide much needed job growth. And on & on. Stay tuned next week for more on this.
05-23-2008 9:29 AM
Filed under: Principles of the Stock Market, Richard Schwartz, Clean Energy, Green Energy, Green Investing, (HOKU), (PLUG), (CHCHF), Climate Action Partnership, Alternative Energy, US Economy, Portfolio Strategy, Oil, The Big Picture, The Principle of Relative Strength, Investment Themes, Trends, Global Warming, Energy Conservation, Solar, Venture Capital, Terrorism, Battery Technology