PowerShares WilderHill Clean Energy(ETF) (PBW)

jmweese (94.84) Submitted: 4/30/07 6:57 PM : Start Price: $19.42 PBW Score: 7.99

I believe PBW makes a great green energy play over the long term. Right now it will remain volatile tracking rather closely to gains/losses in oil prices and good/bad press concerning global warming and other environmental issues. However, as more companies make “green” decisions and considering the public utilities of the world will require a number of “green” products to comply with government regulation, I believe the underlying companies of this ETF will see earnings increase greatly.





Pros:


- Good chance to buy into the environmental and global warming craze.


- As more companies become “green” friendly, the underlying companies will see great increases in earnings.





Cons:


- Volatile and unpredictable.


- Risk of falling out of favor as more competition arises in the ETF marketplace.


- Low dividend yield


- Several companies listed within the index are either unprofitable or barely profitable.





Overall, if you are bullish on the entire ethanol, biodiesel, “green” power (wind and solar) and their components buy this ETF at around $18. I purchased it at $19.75 and rode it to around $24 and then saw it sink quickly to around $16. It may reach $16 again if the market corrects and if it does, snatch it.

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