On The Move: Renewable Energy

| June 1, 2011 | 0 Comments

Renewable EnergyIt’s been an active week in the markets… seems like there’s even more going on than normal. Lots of major economic news is being released.  And there’s 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.

I’ll get back to energy stocks in a minute.  First, let’s 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 that’s still a historically high price for crude.

Here’s the thing…

Gasoline prices are sitting at roughly $4 per gallon.  And that’s never good for the average person’s pocketbook.  More importantly, it’s 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 power’s 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?  That’s where renewable energy comes in.

The next generation energy sources include solar, wind, geothermal, biofuel, and hydroelectric, just to name a few. And it’s in these industries where the future of energy most likely lies.

Getting back to energy stocks…

Recently, we’ve seen a big surge of investor interest in renewable energy stocks.  It’s especially noticeable in the solar industry.

You see, Germany announced they’re 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.

Here’s the best part…

Most renewable energy companies are small and have low stock prices.

But don’t let the low prices fool you.  Many of these penny stocks are well capitalized and have strong management teams.  Plus, they’re 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.

Now’s the time to invest in solid, cheap renewable energy companies.  By buying into this growing sector now, you’ll have the chance to capture explosive returns.

Yours in profit,

Gordon Lewis

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Category: Energy Stocks, Natural Gas Stocks, Penny Stocks On The Move, Solar Stocks

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