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Investing in green technology

by Lawrence Sanchez

Created on: September 14, 2010

The time has come for investor's with long term portfolio's to think about putting some more Green in their pockets. "Green energy stocks that is". Green or alternative energy stocks are the oil stocks of the future. If you are able to buy into a relatively slow moving ,low cost sector that will eventually take off because it has too ,why wouldn't you? Oil will run out, and will sooner then later cost much more. The government's of the world will have no choice, but to invest in different ways to provide energy for their populations. This is because of the cost charged by foreign suppliers.The limit of our abilities both as a country and as individuals will be tested within the next few years. Once this happens the people will speak and their words will say give us alternative energy now!

Alternative energy stocks have been beaten down and are ripe for the picking. Almost all the alternative energy stocks I have seen are selling for bargain basement prices. The reason for these low prices is called cheap oil. Remember in 2008 when oil spiked over one hundred dollars a barrel and the price at the pumps hit $4.00? This is not the first nor the last time this will happen. During this time frame alternative energy soared. Alternative energy has not fallen back to where it was before the oil spike, but it has retraced back nicely. Some of these beaten down stocks are currently at their 52 week lows.If you look at FSLR (First Solar) when they opened 11/1/2006 they where bought for $24.50 per share they maxed out during that oil spike at $317.on 5/1/2008, imagine buying into that. Fslr is now selling for $141.48 per share and its 52 week moving average was between $98.71 on 2/25/10 and $163.32 on 9/22/09. As was stated a few lines ago this stock is perfect for the buy.Lets look at KWT(Market Vector Solar Energy ETF) their 52 week moving average was $9.04 6/8/10  and $17.31 on 1/11/10, this ETF is currently selling for  $12. 18 which gives it plenty of room to move. This ETF was also trading for 45.59 on May 8, 2008. If you use this as a gage you can see that both of these trading vessel's which only reflect solar moved when oil went sky high.

These same statistics can be shown for all Alternative energy stocks. Alternative energy may not be a money maker now , but it has serious potential that can not be ignored. With oil prices higher and a $ 75.00 a barrel comfort zone for the Middle East OIL giants, prices at the pumps can and will only go higher. Seeing eighty dollars a barrel is easy now a days and if you think one hundred or even two hundred dollars a barrel is not possible then just remember back to 2008 when oil hit $145.00 in July. The need for Alternative energy to free ourselves from our foreign oil dependency is a must and can only fuel the rise of alternative energy stocks. The time is now don't get left behind.


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