NEW ENERGY COMPANIES: BEST BETS

Experts' opinions. No money-back guarantees. Market data on some New Energy Exchange Traded Funds (ETFs), including that of the Wilderhill quoted at the bottom, are listed down the left-hand column.

Strategies: Alternative energy stocks that won’t burn out
Norm Alster, September 7, 2007 (International Herald Tribune)

WHO
SunPower, Covanta Holding, Cree

Performance has been good... (click to enlarge)

WHAT
If oil prices drop, credit gets stiffer or government subsidies are removed, the stronger alternative energy investments will emerge.

WHEN
IF and WHEN there is a drop in the price of oil, credit gets stiffer and federal and state governments decide not to incentivize New Energy investments

WHERE
In the IMAGINED market that shifts away from favoring New Energy investments

WHY
- The best bets are companies that have used the recent period of available finances to improve their positions with new research, better manufacturing processes, building capital or wise acquisitions:
1. Solar cell manufacturer SunPower (San Jose, CA) – improved solar cell efficiency, acquisition of PowerLight.
2. Waste-to-energy generator Covanta Holding (NJ) – obtained contracts with municipalities to handle trash and supply electricity, formed partnership with China, acquired partners with wood waste sources
3. energy-cutting light-emitting diode (LED) manufacurer Cree (Durham, NC) – acquired Cotco (Hong Kong) which packages LED systems to the international market, an especially important market for off-grid favored LEDs

...and forecasts look promising. (click to enlarge)

QUOTES
- Pearce Hammond, vp, Simmons & Co. International: "There's a rising tide that's lifted all boats…"
- Robert Wilder, creator, ETF PowerShares WilderHill Clean Energy: "Because of their low power requirements, LEDs can be used off the grid…"