NEW ENERGY INVESTING FOR THE SERIOUS INVESTOR

The Motley Fool gives good investment advice but this is his list, not endorsed by this newsblog. He smartly avoids fuel cells and ethanol. And the tar sands probably can make money in this oil market. But coal-to-liquid? Well, the government IS talking about a subsidy…

A Different Kind of Alternative Energy Portfolio
Dale Baker, May 1, 2007 (The Motley Fool)
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WHO
The Motley Fool

WHAT
A “Foolish” investment expert offers some alternative strategies for taking advantage in the booming New Energy market.

WHEN
Real time. The market waits for nobody.

WHERE
Wherever there is money, there is investing, from Downtown to Online.
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WHY
- Fidelity's Select Energy, typical top 10 holdings: integrated oil companies, refiner, oil-services giant, exploration companies.
- Or second-tier mid-cap exploration names or micro-cap startups looking for oil in odd parts of the globe.
- Energy was 20% to 35% of expert’s total holdings 2004-2006, then moved to “alternative names:” Not fuel-cell startups or new ethanol plays; Looking for cash flow and profit growth, found other ways to invest, getting steadier performance.
His list:
1. picks and shovels
Singapore offshore-drilling platform manufacturer Keppel, U.K.-based Hunting PLC (Alberta well services and trucks)
2. wagons
Tsakos Energy Navigation (double hull oil tankers), Energy and Income Growth Fund (pipelines), Sasol (getting gas-to-liquids (GTL) and coal-to-liquids (CTL) technologies to market)
3. other producers
France's Areva (nuclear, hydroelectric), Brookfield Asset Management (hydroelectric),
Canadian Oil Sands Trust, Suncor, ECA, Nexen, Connacher Oil (Canadian oil sands),
China Shenhua Energy (coal) and, finally, Dynegy (power), BZP Energy (Peruvian natural-gas explorer)
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QUOTES
“Never stop looking: If you stick to the usual suspects and the large-cap energy funds, your performance should mirror the ups and downs in the sector. But adding some names from off the beaten path could smooth out your performance with steady gains.”