leohaas (99.26)

Green Thumbing Alternative Energy Cautiously

November 26, 2008 – Comments (2) | RELATED TICKERS: FAN

The nation is facing a clear need to become less dependent on foreign oil. This was one of the few issues on which the candidates in the Presidential election agreed. Rigthfully so.

Where they did not agree was on how to accomplish this: more drilling, or a bigger focus on alternative energy. Now Obama won the election, alternative energy will get most of the attention. For us investors, that opens up an investment opportunity.

Of course, the big problem with alternative energy is that it is often not profitable. I am not suggesting here that you just buy or green thumb the sector indiscriminately. I would definitely stay away from any company involved in the Ethanol business, for instance. That one is no more than a subsidy rathole.

Wind power seems more attractive at the moment. Due to the deflation of the commodity bubble, many energy stocks seem cheap now. Wind energy may not even be profitable at the current energy prices. That is why wind stocks have taken it on the chin. But this will not last. Oil and natural gas will go up in price again, making wind energy profitable. I will attempt to take advantage long-term by green thumbing PWND and FAN today. Both are ETFs in the wind energy sector.

Over the coming months I expect to pick a few individual stocks in the alternative energy. Any suggestions?

PS: CAPS allowed me to pick PWND, but not to enter it in the Related Tickers field...