On The Move: Renewable Energy
Its been an active week in the markets
seems like theres even more going on than normal. Lots of major economic news is being released. And theres the European debt crisis rearing its ugly head.
But perhaps the most interesting action is taking place in the energy sector.
Energy stocks across the board are on the move as several global storylines play out. The action is broad-based, hitting all the major energy industries including oil, natural gas, nuclear, and renewable energy.
Ill get back to energy stocks in a minute. First, lets look at the big picture
To begin with, crude oil our most important energy source is going through a dynamic period. Over the past couple months, oil prices skyrocketed, driven by the revolutions in the Middle East and North Africa. Investors were concerned over possible export disruptions in the troubled regions.
But the fear trade can only last for so long and eventually the fundamentals won out.
Led by strength in the dollar and a glut of inventory, crude oil plunged over $10 per barrel in recent weeks. However, the price is currently hovering around $100 a barrel. And thats still a historically high price for crude.
Heres the thing
Gasoline prices are sitting at roughly $4 per gallon. And thats never good for the average persons pocketbook. More importantly, its exactly the sort of thing stirring up talk of reducing our oil dependence.
And right now, the most popular choice as an oil alternative is natural gas.
Just this past week, natural gas made headlines again. The king of natural gas, T. Boone Pickens, continues to chide Congress for not considering the Pickens Plan. In a nutshell, the plan mandates government vehicles shift to liquefied natural gas.
You see, the US has abundant reserves of natural gas so no imports are needed. In fact, the US is already a big exporter of natural gas. And demand is on the rise lately, especially overseas.
Why the surging demand for natural gas?
One reason is the nuclear industry sliding into the gutter.
Nuclear power is suffering a massive PR meltdown from the crisis in Japan. That nuclear train wreck is shining a bright spotlight on nuclear powers safety concerns. Now, countries are putting their nuclear reactor construction plans on indefinite hold.
So if oil is too expensive and nuclear power is out what else can fill the void? Thats where renewable energy comes in.
The next generation energy sources include solar, wind, geothermal, biofuel, and hydroelectric, just to name a few. And its in these industries where the future of energy most likely lies.
Getting back to energy stocks
Recently, weve seen a big surge of investor interest in renewable energy stocks. Its especially noticeable in the solar industry.
You see, Germany announced theyre scrapping their nuclear power reliance within ten years. And solar power is going to be the biggest beneficiary. Not to mention, solar technology is improving by leaps and bounds making it more efficient and affordable.
Meanwhile, areas like wind and geothermal are gaining traction. Improving technology and expensive gas all but guarantee these energy sources will be relevant moving forward.
Heres the best part
Most renewable energy companies are small and have low stock prices.
But dont let the low prices fool you. Many of these penny stocks are well capitalized and have strong management teams. Plus, theyre dealing in cutting edge technology with game changing potential.
Investors have a small window of opportunity to jump into these stocks before their products become industry standards.
And when that happens, their share prices will skyrocket.
Nows the time to invest in solid, cheap renewable energy companies. By buying into this growing sector now, youll have the chance to capture explosive returns.
Yours in profit,
Gordon Lewis
Category: Energy Stocks, Natural Gas Stocks, Penny Stocks On The Move, Solar Stocks
