New Investment Theme Unveiled!
Principles of the Stock Market

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Have You Seen This?

Have You Seen This?

A NEW INVESTMENT THEME FOR YOU TODAY.  Quiet, don’t tell anyone about this new theme until you get invested.  Anyway, finding a successful theme early on, before the crowd finds it, is one of many different ways to profitable investing in the stock market.  I’d say it’s one of the best for all time frame investors.  Regular readers will remember we found the REITs theme early on, rode that for years and how well it served us.  Then, more recently, a year and a half back or thereabouts, we got on the fertilizer theme, stocks like Potash, Mosaic, Agrium, etc.  which is still ongoing, and the solar energy theme.  The solar energy theme gave us doubles on stocks like First Solar, Suntech Power and SunPower.  Other themes I haven’t been as lucky with have been energy and global infrastructure.  But I must say I’m learning, and hope you are too, that we need to stay with a theme when we find a good one like a dog with a bone as many super investors/traders advise.  Themes can and generally do run a lot longer than anyone would believe.  Anyway, today let me introduce my new theme to you. 

The Energy Savings Theme.  Let me call it, for lack of a better name, the Energy Savings Theme.  You see I’m reading about how now, after $4.00 gas has became a reality, how individuals are coping by “lowering the thermostat, eating out less, buying cheaper version of products then need, spending less on clothes and medicines and changing the education plans, …”  Also by buying less food, driving less, buying fewer necessities, closing off parts of their home, spending more time outdoors (to save on AC), taking on 2nd jobs, buying more efficient energy systems and appliances, using less water, changing to compact florescent light bulbs and more.  So it only makes sense to me that businesses and corporations are already doing the same thing or discussing the same, how they can use less energy in their business models, where to get energy savings.  If I was a top honcho at just about any company, I’d be holding meetings centered on this issue, that’s for sure.  And from what I read many companies like General Motors and many industries like airlines believe higher energy costs are here to stay.  Thus they have to plan for that long term scenario, start changing how they operate now.  To me, that’s the beauty of and necessity of today’s high energy prices, this tough love.  Americans absolutely need to change our lifestyles toward using less energy.  Doing so will pay off very handsomely over time in key ways.  It will get us off oil and thus our dependence on people and countries who don’t like us and want to harm us.  It will get America’s finances, so badly out of whack, back in shape.  And it will help preserve and respect the planet we live on as it’s quickly becoming too late.  Have you noticed the 50-year snow storms in China, their massive horrific earthquake and the 100-year floods plaguing Iowa & our Midwest right now?

 

Anyway, this energy savings theme is going to be widespread, and go corporate as well as individual, with company after company jumping on board in some form or manner, one group of businesses interested in and investing in new energy savings products and services, doing the buying, while another corporate sector will be highlighting their products and services they offer which save energy, doing the selling,

 

Thus let’s start this theme today by highlighting one sub sector of my already ongoing alternative, clean green energy theme.  That is what I’ve previously termed the Power Conversion/Energy Controls companies.  Thus below I’ve pulled out of last Friday’s fairly all-encompassing shopping list of companies working on powering the world with clean green energy.  I went through each stock and looked for stocks already in uptrends and that save other businesses energy by using their products.  Here’s the list:

 

ENERGY SAVERS

CPST      Capstone Turbine Corp.                     $3.41       Low-emission turbines; hybrids

BCON     Beacon Power                                       $1.72       Flywheel-based power systems

WGOV   Woodward Governor                          $37.78     Energy control systems

MXWL  Maxwell Technologies                        $12.57     Power conversion/purification

CHP        C&D Tech                                             $8.40       Reserve power systems

 

Schwartz View:  While I believe we’ve in for an extended bear market, I do believe there may be some groups and stocks which can make some upside progress.  And remember, I’ve posited that energy and related stocks should outperform early on in this first year of this bear market.  While I wouldn’t bet too much on anything right now, I would suggest starting a small in size portfolio with the above fire stocks.

Disclaimer!  I own a small amount of CPST.  And plan to buy small portions of the rest of the stocks above.

 





Posted 06-13-2008 8:54 AM by Richard Schwartz