Alternative Energy is Where It's At
By Quint Tatro Dec 03, 2007 8:30 am
Extended they are, but alternative energy seems like the best place to be over the next couple years.
I spent a good chunk of time pondering the recent events this weekend. Here are some brush stroke thoughts I am mulling over:
Potter Vs. George Bailey: The race seems to be on to calm investors' jitters and avoid a mortgage induced financial crisis. The part of Potter is being played by Abu Dhabi stepping in with an infusion into Citigroup (C) while the part of Bailey will be played by our very own US government. One way or the other, outside forces are saying that a catastrophe will not happen.
The Foreign Bid: While many have already moved on to the next story, I believe the foreign bid is very real and very scary. I also believe this may be what has put in a floor for some key financial stocks and it is now time to step up with some buys of Citigroup, Bank of America (BAC) and possibly Wells Fargo (WFC).
I Hate Hindsight: Why is it that only when it is all over do we find out that the smartest investors were buying at the best times? Will we learn the same about financial stocks?
All things Alt: If the transfer of wealth already took place with the US buying foreign oil, however now that capital will be used to buy some key assets on the cheap, won't we rush to change this for the future even though it is too late? Extended they are, but alternative energy seems like the best place to be over the next couple years.
Stocks Say it's Solar: Despite a massive investment in Ethanol which has resulted in me paying a gazillion dollars for a gallon of milk, the market is clearly saying Solar will be the winner. All a person has to do is take one glance at First Solar (FSLR), SunPower (SPWR), Suntech Power (STP) versus a Pacific Ethanol (PEIX) to see which way the market is voting.
Gates: Didn't those Microsoft (MSFT) boys invest a ton of money into Pacific Ethanol? Can you say, write off?
Shake It: Umm… is that dog Pacific Ethanol butting in a nice bottom?
Scrub It: Is clean coal an alternative energy? Is that why these stocks are starting to catch a bid and look ripe for a rip?
Hotel/Motel: If the US is the only global economy slowing down while others are partying like it's 1999, won't international hotels and resorts do very well? Furthermore, if you ever wanted to visit America wouldn't you do so after your currency was worth about 50% more than the dollar? I am thinking that Marriott (MAR) and Starwood (HOT) must be put on the radar for a longer term buy.
Position in C
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