I honestly think that wind energy is a better alternative energy source than solar, although my investments seeks otherwise.
Wind is more scalable and cheaper, with the main objections being NIMBY (not in my back yard). I really think people will get over the aesthetic looks because they really aren't ugly when it comes down to it. They are much more attractive than other man made creations like power lines which we all seemed to get used to. It is just a matter of time before opinion changes on this.
The problem is that I have a hard time finding good wind plays in the market. All the wind turbine producers either trade abroad are apart of large conglomerates like GE and Siemens. Nothing against GE, but I don't won't to worry about the risks of a writers strike when I am doing a wind play.
Most other wind stocks I fine aren't profitable and usually trading on the OTCBB or Pink Sheets. As a rule of thumb, I only invest in companies on the NASDAQ and NYSE, because I assume that there is a reason that these companies aren't listed there.
I only invest in companies that can bring in profits, or at least considerable revenue which they can reasonably turn into profits. There is so much crap in the alternative energy sector that you have to have proof they can deliver returns before jumping in.
Jim Cramer recently highlighted some companies that could have potential. Trinity (TRN) and Otter Tail Corporation (OTTR) look like they have potential. Both companies are small caps and are diversified in other areas, which offers some protection against downside risk, but can still have significant exposure in the industry. I always take Cramer's recommendations with a grain of salt, but I am going to start researching those companies and see if there are any opportunities.
I am holding to my LDK solar stock because it is way undervalued and solar is still a good play. If LDK solar price goes up however, I will take some gains and try to find other opportunities with that money.
Thursday, May 1, 2008
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