Respect The Bear But Nibble On Energy Savers
Principles of the Stock Market

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Have You Seen This?

Have You Seen This?


 On Friday, June 13th, I began a new investment theme, what I called the Energy Savings (Savers) Theme.  Essentially a new theme is when some macro force is seen as boosting a whole group of companies, not just one hot company with a new product.  And a macro force is one that isn’t going to dissipate quickly.


I began this theme by recommending five companies which should benefit from business in general looking for ways to save themselves energy, and thus money, listed below.  Then on Wednesday, June 18th, I followed up recommending another four stocks, also listed and updated price-wise below.  Today, let me recommend two more companies which fall under this same energy savers category as well, also listed below.  I first recommended stocks in established uptrends but that strategy is sketchy because when a bear market is on, most all stocks go down, it’s just a matter of time.  Today chart patterns show one stock in a sideways trend which just dropped considerably, Altai Nano, and one stock in an uptrend on a sharp pullback, American Superconductor.   Summarizing what’s in  the table below, I’ve updated my two previous recommended groups and added the two new recommendations below that.


June 13th, 2008 Recommendations


                                                                Buy         Current

                                                                Price      Price      Business Line

CPST      Capstone Turbine Corp.     $3.41       3.50         Low-emission turbines; hybrids

BCON     Beacon Power                       $1.72       1.30         Flywheel-based power systems

WGOV   Woodward Governor          $37.78     35.64       Energy control systems

MXWL  Maxwell Technologies        $12.57     11.11       Power conversion/purification

CHP        C&D Tech                             $8.40       8.74         Reserve power systems

Disclaimer!  I own a small amount of CPST.  And plan to buy small portions of the stocks above.  Update:  I now own a small amount of Beacon Power as well.


June 18th, 2008 Recommendations


COMV    Comverge Inc.                      $12.73     13.95       Peak electric demand reduction

ENOC     EnerNOC, Inc.                       $15.65     20.74       Manages electricity consumption across networks

ITRI        Itron, Inc.                               $94.75     88.60       Computerized electric, gas & water meter reading

BMI        Badger Meter                        $50.04     52.50       Water meter measurement

Disclaimer!  I own a tiny amount of COMV and may buy some of the others as well.


Schwartz Update:  Comverge and EnerNOC both had big up days yesterday.  In spite of the down stock market.  They seem to being coming into fashion now, being discovered as the notoriously, tortoise-moving utility industry is starting to realize what they offer and employ their energy saving products. 


Today’s New Recommendations

                                                                Price      Mkt Cap

ALTI      Altair Nanotech                    $1.80       152m       Supplies a variety of nonmaterial & nanotechnology

AMSC    American Superconductor      $32.15     1258m     Provides superconductor products

Disclaimer!  I own a little of Altair and am watching America Superconductor to buy a small position.


Altair is testing their battery and energy storage products with AES Corp (a utility company).  American Superconductor is testing chilled superconductor wires in the Holbrook Superconductor project on Long Island.  AMSC is seeing much increased revenues; ALTI is still in the revenue start up phase.  Please check both company’s business lines and satisfy yourselves before dipping your toe in the water.


Schwartz View:  Since we’re deeply enmeshed into a big, bad bear stock market, proper strategy is not to jump into the above recommendations with your normal financial allotment or size.  The best way I’ve found is to buy a small portion of stocks you like, figuring that they will probably go down for awhile with the general market.  But buy a little since you don’t want to miss the boat departing!  And buying a little gets you actively involved.  Holding shares makes you more aware of daily or weekly price movements and keeps you interested in what news comes out about your investment and what news comes out about the industry.  Again, today’s modern technology, a.k.a the Internet, allows you to list this stocks and prices you bought them and get a free dynamic update whenever you want it.  And you can designate also having any related news reports for a stock or industry come right to you automatically as emails.  It’s great!


Again, I would suggest buying a small amount of some of the above 11 recommendations, on weakness.  Then keeping yourself informed as to their price progress or regression and the industry news with the plan to buyi more down the road.


Good investing!



Posted 07-15-2008 8:52 AM by Richard Schwartz