Thursday, September 01, 2005 7:01:54 AM
SECTOR WATCH: Alternative Fuel Stocks , Frederic Ruffy
Wednesday August 31, 7:30 pm ET
If alternative fuel companies made lots of money, there would be no energy crisis today. Unfortunately, most of these companies don't. Fuel cell, solar, and wind power technology is slow in developing and, as a result, we are now confronted with record oil and gasoline prices. Through time, this might change, however. In fact, the shares of some of the alternative fuel companies are beginning to attract the attention of investors and options traders alike.
Gas prices at the pump are expected to reach more than $3.00 a gallon this Labor Day weekend. Some analysts are predicting $4.00 a gallon in some areas along the East Coast. Given the relentless rise in the price of fuel, more consumers may begin looking at vehicles powered by diesel, hydrogen, or a combination of gas and electric. Ford Motor (F) and Toyota already offer hybrid vehicles that are powered by gasoline and electricity.
BMW is in the process of building a car that can run on either gas or hydrogen. Diesel engines, which power nearly half of all new cares sold in Europe today, run cleaner and more efficiently than gasoline motors. GM (GM) and Ford are both currently working on new engines for passenger cars and SUVs.
Some industry watchers believe that fuel cells will ultimately drive motor vehicles. “This is the technology auto makers are counting on for the long term,” according to a July 25, 2005 article in The Wall Street Journal (“Out of Gas,” by Neal Boudette). Fuel cells run on hydrogen along with a chemical reaction that generates electricity, which can be used to drive a motor. Although the technolog! y is still in early stages, most of the major automakers are developin g test vehicles using this technology.
In fact, one week ago today, Citigroup Investment Research made bullish comments with respect to fuel cell companies. Not only do these companies stand to benefit from trends in the auto industry, but also an energy bill that was recently signed into law by President Bush offers tax credits. These incentives might serve as a catalyst to “set the growth curve in motion” for fuel cell companies.
Citigroup believes Plug Power (PLUG), and Hydronics (HYGS) as benefiting from the trend. Ballard Power Systems (BLDP), Quantum Fuel Systems (MCEL), Medis Technology (MDTL), Idacorp (IDA), and Avista (AVA) are among the other names to consider when looking for trades in the fuel cell space.
Homeowners may also begin looking to wind and solar power. Many of the companies that specialize in the development of systems based on wind power are in Europe. Vestas Wind Systems, in Denmark, is the largest manufacturer of turbines. Spain's Gamesa Corporacion is another play on wind power. However, in the ! US, investors might look at FPL (FPL). The Florida-based utility company generates about 15% of its profits from wind power technology.
Solar is also considered an alternative power source. In addition, the recent passage of the energy bill might make solar power a more appealing option for homeowners. Because, if improvements to the home are made in 2006 and 2007, homeowners can now take a tax credit of up to $2,000 related to the installment of solar power. Evergreen Solar (ESLR) is among the best ways to trade the trends related to this form of alternative fuel. Other names include Daystar Technologies (DSTI), Spire Corp. (SPIR), and Beacon Power Corp. (BCON).
However, before taking a position in an alternative fuel company, investors will want to mull over the company's long-term prospect carefully. Many fuel cell companies are struggling enterprises, solar start-ups are risky investments, and there are not many choices among the wind power companies either. Yet, at the same time, many of these stocks also have options. Therefore, it is possible to create trades that can profit from the long-term appreciation in the share prices, but limit risks (or even create profit opportunities), if the alternative fuel stock takes a trip southward instead.
http://biz.yahoo.com/opt/050831/876d85f464d1aedb1ae18aecb8186786.html
Wednesday August 31, 7:30 pm ET
If alternative fuel companies made lots of money, there would be no energy crisis today. Unfortunately, most of these companies don't. Fuel cell, solar, and wind power technology is slow in developing and, as a result, we are now confronted with record oil and gasoline prices. Through time, this might change, however. In fact, the shares of some of the alternative fuel companies are beginning to attract the attention of investors and options traders alike.
Gas prices at the pump are expected to reach more than $3.00 a gallon this Labor Day weekend. Some analysts are predicting $4.00 a gallon in some areas along the East Coast. Given the relentless rise in the price of fuel, more consumers may begin looking at vehicles powered by diesel, hydrogen, or a combination of gas and electric. Ford Motor (F) and Toyota already offer hybrid vehicles that are powered by gasoline and electricity.
BMW is in the process of building a car that can run on either gas or hydrogen. Diesel engines, which power nearly half of all new cares sold in Europe today, run cleaner and more efficiently than gasoline motors. GM (GM) and Ford are both currently working on new engines for passenger cars and SUVs.
Some industry watchers believe that fuel cells will ultimately drive motor vehicles. “This is the technology auto makers are counting on for the long term,” according to a July 25, 2005 article in The Wall Street Journal (“Out of Gas,” by Neal Boudette). Fuel cells run on hydrogen along with a chemical reaction that generates electricity, which can be used to drive a motor. Although the technolog! y is still in early stages, most of the major automakers are developin g test vehicles using this technology.
In fact, one week ago today, Citigroup Investment Research made bullish comments with respect to fuel cell companies. Not only do these companies stand to benefit from trends in the auto industry, but also an energy bill that was recently signed into law by President Bush offers tax credits. These incentives might serve as a catalyst to “set the growth curve in motion” for fuel cell companies.
Citigroup believes Plug Power (PLUG), and Hydronics (HYGS) as benefiting from the trend. Ballard Power Systems (BLDP), Quantum Fuel Systems (MCEL), Medis Technology (MDTL), Idacorp (IDA), and Avista (AVA) are among the other names to consider when looking for trades in the fuel cell space.
Homeowners may also begin looking to wind and solar power. Many of the companies that specialize in the development of systems based on wind power are in Europe. Vestas Wind Systems, in Denmark, is the largest manufacturer of turbines. Spain's Gamesa Corporacion is another play on wind power. However, in the ! US, investors might look at FPL (FPL). The Florida-based utility company generates about 15% of its profits from wind power technology.
Solar is also considered an alternative power source. In addition, the recent passage of the energy bill might make solar power a more appealing option for homeowners. Because, if improvements to the home are made in 2006 and 2007, homeowners can now take a tax credit of up to $2,000 related to the installment of solar power. Evergreen Solar (ESLR) is among the best ways to trade the trends related to this form of alternative fuel. Other names include Daystar Technologies (DSTI), Spire Corp. (SPIR), and Beacon Power Corp. (BCON).
However, before taking a position in an alternative fuel company, investors will want to mull over the company's long-term prospect carefully. Many fuel cell companies are struggling enterprises, solar start-ups are risky investments, and there are not many choices among the wind power companies either. Yet, at the same time, many of these stocks also have options. Therefore, it is possible to create trades that can profit from the long-term appreciation in the share prices, but limit risks (or even create profit opportunities), if the alternative fuel stock takes a trip southward instead.
http://biz.yahoo.com/opt/050831/876d85f464d1aedb1ae18aecb8186786.html
Cash is King until further notice!!!
My comments on companies are usually my opinion of long term success (years). The PPS may go up or down greatly in the meantime depending on the number of greedy suckers with money.
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
