Nick Hodge - Angel Publishing

Clean Energy Stocks

Mary Sawaya has seen a 50% increase in business over the past five years.

She sells work boots and Carhartt overalls in Kemmerer, Wyoming.

But the work boot market hasn't always been so bullish.

According to Sawaya, "About 10 years ago, [the energy industry] was in a slump. And then when Williams Field built their second plant and [Enterprise Products Partners LP] came in, and all this oil and gas cycling came through ... our business went way up."

Job growth in Wyoming has been the strongest in the nation over the past few months. The state's budget surplus is a whopping $571 million.

A recent local news report claimed the state and its citizens have benefited from the sale of coal, oil, and natural gas. But, the report claimed, "Natural gas has really been the biggest money maker in the past couple of years. It's boosted the whole state, but especially the towns that are really close to the energy fields."

Notice she didn't say oil fields.

Before I get into the clean energy stocks associated with this energy boom, let's take a look at some of the market forces behind the push...

Natural Gas: The New Transportation Fuel

No, it's not oil that's fueling this modern day boomtown—it's natural gas.

You see, many of the world's largest oil fields, including those from which the U.S. gets large amounts of imports, are in decline. This is a fact that is not going away. In fact, Cantarell, Mexico's supergiant and a large source of American imports, declined 28% last year. At that rate, it will be gone in four years.

To make up for this (and many other) declining fields, energy (not oil) companies are racing to pick up the slack. Indeed, we really can't produce any new additional oil until we find and produce enough to offset the decline of major fields.

So everything is on the table. Biofuels, tar sands, oil shale, deepwater, and yes, even natural gas liquids. We need them all. And we need them to be recovered responsibly.

This is what The Pickens Energy Plan is all about. Using our domestic supply of natural gas—like the fields in Wyoming—to increasingly fuel our cars. Some of the electricity that was once produced with large amounts of natural gas will then be shifted to cleaner wind-based power.

This all comes down to energy security and independence. Importing 66% of all oil and oil-based refined products makes no sense at all (and hasn't for a long time).

But, as I've said before, Boone's efforts aren't entirely selfless. The billionaire, who currently serves as chair of BP Capital, has large claims in clean energy, natural gas- and wind-related companies and projects.

He's got a $12 billion stake to build what, until recently, was considered to be the world's largest wind farm on the Texas panhandle (Clipper and BP recently announced a wind farm that would be even bigger). Pickens also has heady interests in natural gas fueling companies and in natural gas engine manufacturers.

And with the amount of financial weight he brings to the energy party, you can bet policymakers are responding.

California has already set forth a ballot initiative that would allow the state to invest in the burgeoning market for natural gas-fueled cars and trucks. The measure, which currently faces no opposition, would free up $5 billion to fast-track the deployment of a million natural gas vehicles on California's roads.

The presidential candidates, for their part, are each taking meetings with energy guru.

If you like the plan or hate it, it's fair to say we're going to see a bump in the nation's use of wind energy and natural gas as a vehicle fuel.

Clean Energy Stocks: From Wyoming to Your Portfolio

Earlier in the article we discussed the effects the natural gas boom is already having in small Wyoming towns. That's because Wyoming is a hotbed of liquefied natural gas activity.

The associated economic benefits of the increased use of natural gas aren't being monopolized by Wyoming's citizens. Liquefied natural gas specialists operating in the area, like Enterprise Products Partners (NYSE: EPD) and Williams Partners (NYSE: WPZ) will also see a nice bump.

But the companies that stand to make the most financial gain are those providing liquefied natural gas and natural gas engines to the end market.

T. Boone himself has 40% claims in companies that operate in those sectors.

And you should have your claim, too.

The liquefied natural gas and engine companies in which T. Boone is invested have returned 10% and 107% respectively over the pat year.

And that was before the Pickens Plan and huge natural gas bull market came into play.

I've prepared a full report on how you can instantly start profiting alongside billionaire oilman T. Boone Pickens.

Those that have followed his lead over the past few years have made millions. And you should be getting your fair share.

Call it like you see it,

Nick

Chevy Volt

The buzz surrounding the Chevy Volt is increasingly overwhelming. An overview and update is certainly in order.

It was only five years ago when General Motors product chief Bob Lutz said that hybrid cars don't make "economic or environmental sense."

Since then, the market and the science has proven him absolutely wrong. Prius sales are off the charts and every major automaker is now playing the hybrid game, albeit with different results.

Before announcing the Chevy Volt at the 2007 Detroit Auto Show, General Motors definitely took its lumps, failing with both Saturn hybrid knock-offs and with trying to implement hybrid systems on large gas-guzzlers like SUVs and trucks.

Failing and desperate, executives rolled out the Chevy Volt—an impressive piece of machinery until you look at the numbers.

Originally well-received by all parties, the Volt now looks as though it'll come with a price tag twice as high as its competitors. Some are even saying it could lose money for GM, which has been posting billions in annual losses for years.

And there are battery issues. Oh, are there battery issues.

So the question remains: Is the Chevy Volt just a very expensive public relations campaign.

Chevy Volt: Is There Something Better?

According to John McCain, there isn't. He recently told a group of GM workers that "The eyes of the world are now on the Volt. It's the future of America and the world."

I guess he hasn't heard of UQM, Tesla, Phoenix Motorcars, Aptera, or Toyota, for that matter.

Yet, the promises have been made. When first announced, the Chevy Volt was rumored to cost $25,000. Then GM was hinting at $30,000.

Now, Lutz says that $40,000 might be possible, but that $48,000 is more realistic. It's beginning to look like a moronic auction.

Do I hear $50,000? $55,000?

The battery alone is projected to cost $10,000 per vehicle, which will be outsourced to either LG of Korea or Continental AG (XETRA: CON). GM's decision will be announced shortly.

Whichever battery pack is chosen, it will ultimately become a part of GM's proprietary E-Flex hybrid powertrain. The Volt will use batteries to power the car up to 40 miles a day without recharching. When the electric battery needs to be recharged, the E-Flex Drive System—complete with a small internal combustion engine—kicks in and recharges the lithium ion battery pack while powering the vehicle.

Don't get me wrong, this is a very novel concept. Kudos to GM if they can pull it off.

But the fact remains, the Toyota Prius commands a 51% share of the domestic hybrid market. And its already an established consumer vehicle, in many cases delivering in excess of 50 miles per gallon. The Civic hybrid is also very impressive. And so are the larger hybrid models, like Camry and Accord.

Cracking that market share will be a tough row to hoe for General Motors what with them being so late to the game.

Some manufacturers, like Phoenix Motorcars, Tesla, and Aptera have foregone hybrids altogether in pursuit of all electric vehicles. All three of those companies have successfully manufactured vehicles that run entirely on electricity.

Hybrid Investment Opportunities

If the Chevy Volt is a less-than-stellar consumer option, then GM (NYSE: GM) certainly isn't a pure play hybrid investment outlet.

Tesla, which is currently manufacturing the 220 mile per charge Roadster and has plans for sedan, was rumored to be going public this year.

And while the company has formally acknowledged its intent to do so, unfavorable market conditions have prevented it thus far. When it does come to market though, be ready to buy.

But you can still invest in electric vehicle technology. Both Altair Nanotechnologies (NASDAQ: ALTI) and UQM Technologies (AMEX: UQM) are supplying battery parts to Phoenix Motorcars for their SUT, an all electric truck that gets over 100 miles per charge.

And A123 Systems Inc., which has battery deals with GM, Think, and BAE Systems just recently filed for a much anticipated $175 million IPO. I'd be all over that one as soon as it lists.

There are plenty of other up-and-coming hybrid, electric vehicle, and battery plays out there. Only time will tell which will be successful.

In addition to companies manufacturing vehicles, there will be a massive investment opportunity in companies that will be modify our grid to support increasing amounts of electric vehicles.

My service, Alternative Energy Speculator, will guide you on how to profit from this transportation renaissance.

Until next time,

Nick

The Renewable Energy Markets

Has green lost its luster?

Of course not. Yet that seems to be the attitude of more than a few.

Sure, solar stocks have been battered over the past few months. But didn't the Dow (Index: DJI) go from over 13,000 to below 11,000 in the same time? Indeed, it did.

And hasn't Exxon Mobile (NYSE: XOM) gone from nearly $95 to to about $75 in the same time? Indeed, it has.

Even the incessantly-talked-about Transocean (NYSE: RIG) is down 15%. . . in just the past two months.

So for renewables to be dismissed as bad investments by bulls of other energy sectors is not only wrong, it's quite hypocritical.

Indeed, with the world's largest oil fields being depleted—some by as much as 15% per year—and natural gas facing a similar long-term plight, we're going to need all the energy we can get. And there's plenty of money in all of it.

But you must realize, new oil discoveries, and even arctic and offshore drilling, are certainly no catholic cure. In fact, the amount of oil they're providing—and could potentially provide—is absolutely not enough to offset rising demand and oil field depletion, not to mention that oil is increasingly more expensive to extract. This is an often overlooked aspect of new oil finds.

Yes, there's money to be made from the remaining oil and the companies that refine the ever more heavy and sour crude. And I'm not against making that money.

But to think that there will be no serious energy transition to include a large share of renewables coupled with efficiency is naïve at best, and moronic at worst.

That said, let's look at the billions of dollars that continue to pour into the green sector even during this progressively bearish market.

Renewable Energy Markets: Investment Magnet

According to New Energy Finance, one of the world's most highly respected renewables analytics firms, private equity and venture capital deals in cleantech surged to a record $5.8 billion in the second quarter.

If the technology had no future, would it be bringing in record investment dollars at the most foundational levels? Hardly. Surely you can remember the internet naysayers of the 1990s. And look how that turned out. . . you're reading this on the internet, and it's marvelous.

These green technologies that are being invested in today on a very nascent level are going to be the energy juggernauts of the future. From my perch, it's inevitable.

But back to that second quarter $5.8 billion investment, which, by the way, is more than double the $2.6 billion invested in the first quarter.

You know where that money went: wind, solar, and second generation biofuels.

And speaking of oil companies and second generation biofuels, check out where BP (NYSE: BP) thinks transportation fuels are headed. On Wednesday, they announced a $90 million partnership with Verenium (NASDAQ: VRNM), to speed the development of cellulosic ethanol.

Verenium shot up over 75% on the news. . . in two days.

More affirmation of the ethanol market came this week when the EPA decided to uphold the increased Renewable Fuel Standard (RFS) signed into law last December, which increases the amount of renewable transportation fuels used annually to 36 billion gallons by 2020—16 of which must be cellulosic ethanol.

Texas Governor Rick Perry had requested that the EPA cut the RFS mandate by 50%. He lost.

Back to green energy investment. . .

Beyond second generation biofuels, wind and utility-scale solar continue to be hotbeds of investment. According to a recent Wall Street Journal Environmental Capital posting:

Wind energy in the U.S. is still going strong, despite the lingering uncertainty over congressional extension of tax credits for clean energy. The American Wind Energy Association today said second-quarter wind-power installations fell slightly from the first quarter, to 1,194 megawatts. But the wind lobby said 2008 should be another record year overall, with more than 7,500 megawatts installed, provided Congress finally renews the tax credits.

Power companies in the U.S. and Europe are increasingly looking to new types of solar power for big clean-energy installations, rather than do-it-yourself rooftop arrays. Biofuels have gotten a bad rap, but the next generation-made from stuff you can't eat like waste wood and algae-is drawing multi-million dollar investments.

We now know that pre-public cleantech companies are still attracting gobs of investment.

So what's the problem with publicly traded companies?

Publicly Traded Renewable Energy Companies

Part of the problem stems from the fact that renewable energy companies are finding increased resistance to listing publicly. This is do to instability in the overall equity markets fueled by a credit crunch, a mortgage mess, and a weak dollar.

That precarious situation has shelved several cleantech IPOs, making it harder for early-stage investors to recoup their investments.

Even though companies raised $5.2 billion in public markets during the second quarter, over half of that came from just one listing: Portugal's EDP Renovaveis.

Nonetheless, that $5.2 billion was monstrous jump over the dejected $1 billion during the first quarter—a sign that conditions may be starting to improve.

Until conditions completely improve for new entrants, one must embrace the current culture of the market.

There are plenty of bargains to be had in these troubled waters. Great companies, across all renewable sectors, have been beaten down as a function of broader market conditions.

Chinese solar companies, for example, are painfully oversold. And their rebound to levels of old will certainly provide gains congruous with the amount of of their recent losses—about 46%, on average.

I'm talking about companies here like JA Solar (NASDAQ: JASO), Solarfun (NASDAQ: SOLF) and Yingli (NYSE: YGE).

The same holds true for other renewable sectors.

Indeed, the bull market in energy is long from over. In fact, we're just in the first inning. The downturn in energy stocks due to negative external conditions is only a bump along the way.

As long as demand continues to rise exponentially—and we all know it will—then the energy, and particularly the renewable energy, bull market is destined to press on.

Call it like you see it,

Nick

P.S. My Alternative Energy Speculator continues to make money in this difficult time. By employing a strategy that consistently uncovers oversold and underloved cleantech stocks, readers of that publication are sitting on no less than six double digit winners. Check out just one of the recent opportunities.

Water Company Stocks

There is a giant bull market that hardly anyone knows about.

It has people grappling for a scarce resource. It has businesses fighting for rights to it. It has pitted neighbor against neighbor, and state against state.

And it could make you an absolute fortune.

Of course, being such a huge bull market, there are examples of it everywhere—in the headlines and news stories you read everyday.

Yet nobody seems to put the pieces together; no one has yet connected the dots in a meaningful way for investors.

Take, for example, an article I came across recently in the Los Angeles Times:

Across the countryside of this nation on the heel of the Arabian Peninsula, the pumps and drills roar. Wildcatters bore as much as 1,000 feet into the earth and draw out the valuable liquid. They pump it into tankers and haul it away to sell to the highest bidder.

Any rational person would assume this article was about oil. But it's not.

It's about water. The world's most precious resource.

Water Scarcity

That L.A. Times article was about Yemen, and its current struggle to provide enough water to satisfy both its population and its agricultural business. It's a task that's proving to be harder and harder each day.

The article continued:

As Yemen's exploding population draws out more and more water from the parched land. . . the bone-dry nation's very existence is threatened. The country faces its greatest water crisis, with underground levels dropping dramatically, scientists and government officials say.

Instead of conserving water as it becomes scarcer and more precious, more and more Yemenis are rushing faster and faster to extract it from the earth and capture it from rains for profit, pushing the country toward an ecological nightmare.

Interestingly, this is the same scenario that's currently being played out with oil or, more specifically, peak oil. So it begs the question: Are we about to face peak water?

More and more, the answer is yes. You see, the Yemeni water problem isn't an isolated event. It's one being witnessed by most countries in the world, both developed and undeveloped.

Certainly you've heard about the ongoing droughts in the American Southeast and Southwest, and in Australia, China, Africa, and the rest of the Middle East.

The Growing Water Problem Is A Factor of Many Issues

First of all, water is a finite resource. There is no more water on the earth today than there was hundreds of millions of years ago. There is no less either. We can't make it or destroy it.

And while our planet may be over 70% covered with water, less than 2% of it is freshwater. . . you know, the stuff we need to survive.

Of that tiny 2%, some water is perpetually tied up as atmospheric moisture or as frozen saturated soil (permafrost) that we can never use. Put another way, if all the world's water were in a one-gallon jug, fresh water wouldn't account for even a teaspoon of it!

The second part of the problem is the growing human population.

Water was first formed about 4.5 billion years ago. We've been around for only 60,000 years. But in that time, our population has exploded.

And we've done it rather quickly. It took us all of history to break the 1 billion population barrier at the beginning of the 19^th century. Since then, the world's population has grown exponentially to over 6.5 billion. We now add about 75 people every 30 seconds.

And most projections put world population at about 10 billion by 2050. That's unsustainable to say the least, unless we can come up with market-based approaches to lessen water consumption, use water more efficiently, and derive freshwater from saltwater resources via desalination, which is currently a very capital and energy intensive process.

If nothing is done, by 2025 nearly two-thirds of the world's population will be water stressed due to greater demands on freshwater resources by burgeoning human populations...the diminishing quality of existing water resources because of pollution...and the additional requirements of servicing our industrial and agricultural growth.

That's less than 20 years away.

Water Right Now: Shortages and Investing

Ironically, two-thirds of the world's population lives in areas that receive only one-quarter of the world's annual rainfall, while the most water-rich areas of the world, such as the Amazon and Congo River Basins, are sparsely populated.

Right now, about 450 million people in 29 countries are facing severe water shortages.

According to the UN, water and sanitation deficits affect about 50 percent of all people in the developing world and lead to the deaths of 1.8 million children each year.

Much like easily accessible oil, all the readily available water resources are in full use:

All surface and ground freshwater resources in Jordan, Israel, the West Bank, Gaza, Cyprus, Malta and the Arabian Peninsula are fully used.
It's now possible to wade across Lake Chad—which was once one of the largest lakes in the world and thought to be the source of the Nile.
Once the fourth largest lake in the world, the Aral Sea's surface area has shrunk by 60% and its volume by 80%. . . and it's still shrinking.
The Yangtze, Ganges, and Colorado, don't flow to the sea for much of the year because of upstream withdrawals.
In some places, the Ogallala—which supports America's breadbasket—is declining at the rate of five feet per year. Optimistic predictions say that the Ogallala will be depleted by 2020.

Perhaps an image of the current drought conditions here in the U.S. can give more tangible insight as to just how severe the problem currently is:

I could go on and on about the doom side of the water story. There is more than enough solid information and analysis to convince any sane person that there is real problem going on.

What's more interesting for investors, though, is that there's a boatload of money to be made from investing in the companies that are providing solutions to water scarcity issue.

Take, for example, the current state of the water infrastructure here in the U.S.

The nation has 800,000 miles of water pipes and 500,000 miles of sewer pipes. Generally, these pipes are supposed to last fifty years. The most comprehensive research to date suggests that the average age of water infrastructure pipes in the US is 43 years.

Just this single piece of data implies that nearly the entire water pipeline system in the US will soon have to be replaced.

To overcome these obstacles, an investment upwards of $1 trillion will need to be made in the next twenty years. That breaks down to over a 150% annual increase over current spending amounts of $60 billion annually.

Water Company Stocks

Essentially, this is a massive wealth building opportunity. By staking your claim early in the water utilities, pipe and valve manufacturers, and desalination companies that will be providing lifeblood to billions of people, you have the chance to rake in hefty profits.

Just this week Mueller Water Products (NYSE: MWA), which makes water infrastructure and flow control equipment , announced its third quarter results. The result was net income of $20.3 million, much better than the $1.3 million loss in the third quarter of 2007.

Net sales from their U.S. Pipe segment surged 9.4% higher than the same quarter in 2007—a prime illustration of the infrastructure work currently underway.

Since the announcement of the results, Mueller's stock has gained as much as 25%. And there's probably more to come.

But Mueller certainly isn't an isolated incident. I expect this trend to continue for year. This is just the beginning.

Just look at Flowserve Corp. (NYSE: FLS), which develops, manufactures, and sells precision-engineered flow control equipment. That stock has been on an absolute tear over the past twelve months:

And I have a water pipe replacement play in the Alternative Energy Speculator portfolio that is already delivering hefty gains to readers.

Indeed, there is much more to come from this sector. I'll keep you up do date here in the pages of Wealth Daily, and I'll continue making water-related recommendations in the Alternative Energy Speculator.

Call it like you see it,

Nick

Wind Turbine Stocks

Blackstone, one of the largest U.S. private equity firms, recently announced it's lobbing over $1.5 billion at a German offshore wind farm.

And they're not doing it because they feel all warm and fuzzy inside. They're doing it to turn a profit. And you should be heeding their advice.

But the wind farm, which would supply power to more that half a million homes, will need to overcome supply and labor bottlenecks in order to be a success.

You see, renewable energy is in such high demand that it is sometimes difficult to procure labor and materials. And if you've been following oil prices, you know exactly what happens when demand is high and supply is low: prices rise.

That's precisely what's happening in the wind industry. Materials like turbines and gears are in short supply, requiring long lead times, but the offshore wind industry is forecast to grow at 50% annually for at least the next five years.

And the onshore wind industry is forecast to grow just as quickly. Europe has a goal of attaining 12-14% of its power from wind by 2020. On this side of the pond, the DoE has said that getting 20% of our power from wind by 2030 is also within reach—but it will take trillions of investment dollars, considering we currently get less than one percent of our electricity from wind.

Backlogs are growing quickly, while the orders keep pouring in. It's shaping up to be giant bull market for wind turbine stocks.

The Largest Wind Turbine Companies

First, let me clarify that the turbines used for offshore wind are of different quality and cost than those used onshore. Right now, General Electric (NYSE: GE) and Siemens AG (NYSE: SI) are the two most viable candidates in the offshore business. But a few analysts have claimed that Siemens is the only company currently capable of accepting large new orders for offshore turbines—another indication of a looming, if not present, wind turbine supply crunch.

Nonetheless, each of those companies is a leader in the overarching wind turbine business. And there are other companies worth paying attention to. So let's dissect the wind turbine business, one company at a time.

The race to become the world's largest manufacturer of wind turbines is highly contentious, with a handful of companies vying for the top spot.

By nearly all estimates, Danish wind company Vestas (CPH: VWS) (Pink: VWDRY) holds the largest market share with about 23%. In fact, the company produced enough turbines in 2007 to power about 4.5 million homes, and has already made deliveries of wind turbines capable of producing 4.5 GW of power to 28 countries.

Spain's Gamesa (MCE: GAM) (Pink: GCTAF) is next in line, with a 16% global market share. Gamesa also perfectly illustrates the current backlog of wind turbines worldwide. In 2007, for example, the company sold enough contracts to to max out its production capacity. . . for the next two and a half years!

The wind turbine business is so hot that Gamesa—once a diversified renewable energy company—recently sold off its solar segment to devote more time and energy to its wind business.

Just in the past 18 months, Gamesa has built four wind turbine production facilities in the U.S., three in China, and two in Spain. So you can see how manufacturers are racing just to keep pace with demand.

The third largest wind turbine manufacturer is India's Suzlon Energy Limited (Bombay: 532667), with a 14% global market share, depending on the source.

Suzlon has been highly successful since 2005, with its revenues and profits growing by an average 100% each year. Interesting to note is that the percentage increase in profits has been greater than the increase in revenues, illustrating the company's ability to lower costs and increase margins.

General Electric comes in fourth on the list of wind turbine companies by market share, with about 15.5%. In the first quarter of 2008, GE sold $1.8 billion worth of wind turbines, which is 40% higher than the previous quarter.

What's more, the company's backlog of wind turbines has grown to $12 billion, up from $11 billion in the fourth quarter of 2007, and more than double the backlog in the first quarter of 2007.

If you're still counting, Siemens comes in fifth, with an 8-9% market share.

But enough about companies, what we're really interested in is. . .

The Wind Turbine Stocks To Invest In

Without divulging all the secrets of Green Chip International and the Alternative Energy Speculator, the two no-brainer wind turbine investments right now are Vestas and Gamesa.

Vestas has been able to boost its earnings at a terrific pace, rising from 201 million euros in 2006 to 443 million euros in 2007—a 120% increase!

And in its fiscal year 2007 earnings announcement, the group said it anticipates international wind power capacity to increase by 20% to 25% each year for the next decade.

To be honest, the company reported lower than expected first quarter 2008 results, and the share price has reflected that of late.

Vestas's second quarter earnings come out on August 12, 2008. Estimates are claiming the company will report 1.1 billion euro in revenue and .42 eurocents per share profit.

While I'm certainly bullish on this company, I (and Piper Jaffray) think they'll miss the estimates slightly to the downside. Best advise: wait for the earnings to come out. If they miss, and I think they will, you'll be able to pick up shares on the cheap after it takes a hit.

The third and fourth quarter numbers will be stellar.

Gamesa, for its part, is an utterly undervalued stock play. The company recently announced first half (H1) earnings of nearly 1.9 billion euros, about 9% higher than analyst estimates.

As a result, many analysts have upped their estimates for for full year revenue and earnings. Most agree that the second half will much more impressive than the first—as is the case with Vestas.

Plus, the fact that Gamesa has an orderbook that extends through 2011 means that investors have clear earnings visibility. And the company recently secured its first order in China since 2006.

I think this wind turbine stock could reveal a 25% upside by the end of the year.

Green Chip International

Much of the information in the latter half of this article is the type of information we normally reserve for our paid subscribers.

But this is an unusual time.

You see, we're about to officially launch our newest service, Green Chip International. In fact, it officially opens tomorrow.

As avid readers of the Green Chip Review, I wanted to give you a first-hand account of the level of analysis provided in Green Chip International.

Basically, we've looked at the best renewable energy companies in the world, and whittled them down into a blockbuster portfolio—the true 'Green Chips' of the international renewable community.

We think it's going to be so successful that we're guaranteeing six double digit gains during your first 12 months, or it's free. It's that simple.

So if you liked the analysis of the wind turbine companies above, or if you want a piece of the $114 billion international renewable energy market, then Green Chip International is just for you.

Take a few minutes to read all about it.

Call it like you see it,

Nick

Green Mergers and Acquisitions

In "Clean Energy Trends 2007," the Clean Edge authors cite "a number of developments [that] put clean energy definitively on the map over the past year."

One of those developments, they said, was "significant corporate investments in clean energy acquisitions."

Of course, we and our readers know that better than anyone.

Over two years ago, in May of 2006, Jeff had the following to say about a tiny desalination company:

In fact, one company I've been following for awhile, Zenon Environmental, Inc. (ZEN.TO) is the perfect example of just how lucrative this segment is.

Zenon is a leader in drinking water treatment, wastewater treatment, process water treatment and water recycling.

As these smaller, publicly-traded water conservation and water recycling companies continue to grow and land more and more contracts. . . behemoths like GE will continue to swallow them up...allowing those who get in early to exploit these acquisitions for profits.

You may not know the Zenon story. But the company was sold to GE for a 55% premium on its share price at the time. The stock soared 53% overnight. And those who were in earlier made significantly more than that.

Another example of shareholders taking advantage of the sale of a company occurred one year ago, almost to the day.

At the time, I was covering a company called Cambridge Display, an organic photovoltaic spin-off company that originated at Cambridge University. It was trading on the NASDAQ under the symbol OLED.

On July 30^th 2007, the company announced its sale to Sumitomo Chemical Company, for a 107% premium on the current share price. Needless to say, shareholders made at least that much on the next trading day. More if they were in earlier.

Take a look:

An Atmosphere of Green Mergers and Acquisitions

It couldn't be any easier to convey how ripe the current market environment is for corporate green mergers and acquisitions.

According to Global Trends in Sustainable Energy Investment 2008, put out by the highly respected New Energy Finance, "Corporate M&A surged forward, more than doubling from $3.5 billion in Q1 2007 to $7.7 billion in Q1 2008."

And the total dollar amount for green M&A surged to $25.7 billion in 2007, a full 52% higher than the $16.9 billion that changed hands in 2006.

Also according to that report:

Wind led M&A activity as supply chain shortages drove consolidation amongst component manufacturers, while offshore wind projects saw increased interest. Wind assets are gradually being transferred from developers to utilities.
Energy Efficiency M&A was also strong with $4 billion changing hands boosted by a few large deals.
Biofuels M&A was driven by industry turmoil, which shook out weaker players, as well as by the rising cost of building new plants, leading developers to acquire existing ones.
The U.S. and Europe dominated M&A activity, while Brazilian biofuels became a focus for non-OECD transactions.
In 2008, M&A increased in Q! As the credit crunch sparked market consolidation

Just take a look at how M&A has increased over the past seven years:

Don't you think it's about time you got a piece of this action?

Getting a Piece of Green Mergers & Acquisitions

Last year, the number of green merger and acquisition deals totaled 237, 52 more than the 185 in 2006.

And that number is only going to grow over the next few years.

You see, the current climate of green energy markets is one that's perfect for M&A on many fronts.

First of all, these are rapidly maturing markets. Take the solar market, for example.

A fledgling market just a few years ago, solar is now one of the big boys of clean energy. The market encompasses a growing number of technologies, for which costs are falling and output numbers rising.

As solar continually marches toward grid parity, the price at which it's competitive with traditional energy sources, some clear winners are emerging.

The companies that are taking the lead—the First Solars and Q-Cells of the world—are looking to buyout their competitors and other, smaller operations. Expect this phenomenon to continue with other sectors of renewable energy as well.

But that's just one way that M&A is initiated.

Because renewable energy is such a fast-growing and profitable business, large companies that aren't currently getting a piece of the action are looking to get a foot in the door.

In fact, most pure-play clean energy acquisitions in 2007 were driven by buyers wanting to expand into the renewable energy industry via power generation or equipment manufacturing. According to the above referenced report, with regard to companies expanding into the renewable energy business, "a total of $10.9 billion was invested in renewable power companies, an increase of 83% on 2006, while $7.6 billion was paid for clean energy equipment manufacturing firms, up 44% on the previous year."

Now, I'm not saying that every small renewable energy company is a buyout target. But if you find one with the right attributes, operating in the right sector, the chance grows exponentially higher.

That's partly why we founded the Alternative Energy Speculator (AES)—to find young, undervalued companies that have either the potential for massive gains or acquisition.

It just so happens that the latter occurred this week.

One of the companies in the AES portfolio, Xantrex Technology (TSX: XTX), announced it is being purchased by Schneider Electric, for 55% higher than their average share price over the last 30 days.

Of course, the stock skyrocketed by that amount in just a few short days, and I gave the sell notice for Alternative Energy Speculator members to cash out with handsome gains. Take a look:

I don't want you to miss the next opportunity like that.

With that in mind, please read the attached report. It has all the details on a stock we think could gain 353% in the next two years. And that's without a potential buyout.

Call it like you see it,

Nick

Green Energy Investing

This article originally appeared in the Green Chip Review on July 17^th, 2008 as an in-depth report on today's green energy investments. With the current state of the energy market, and the looming boom in green energy, we felt readers of Wealth Daily could also profit from the information presented in this article. Enjoy

So the markets are in the pits. Citizens are lining up for hours—predawn hours—to withdraw money from their failing banks. And the Dow is at it's lowest point since July. . . of 2006.

At this point, many portfolios are in a holding pattern. The so-called credit crunch, and the resultant housing collapse and severe stocks market downturn, has led to the shrinking of savings and the defaulting of millions of mortgages.

And yet, there's no point in selling—houses or stocks. Why sell a long-term investment for less than you paid for it, especially if its likely that the price will rise again in the next few years?

The same holds true for green investments. Some that you've picked up so far may showing red returns at the present time. But as longs as you're willing to hold out, they'll rise again once market conditions begin to improve and policies are put forward that actually deal with our energy and environmental solutions instead of just implementing laws du jour aimed only at swaying public opinion or cushioning constituents' bottom lines.

In the meantime, it's still possible to make money on the bull side of things, but it's going to take more than a promising press release. To make money in this market, you have to know the ins and outs of the green energy market and how it's developing.

What's more, if you can get past the guttural reaction to simply watch from the sidelines, there are some good buys to be had in this down market. Ones that are off their recent highs, but will return to those levels or higher as the market rebounds.

With that in mind let's take a look at the current state of the renewable, both from an output and monetary standpoint, in an effort to identify which areas are ripe to buy in troubled waters.

Investing in Green Energy: Growing, Growing

First and foremost, green energy investing has been, and will continue to be, a runaway train scenario. Check out the total annual green investment data for the past few years:

2004, $33.4 billion
2005, $58.7 billion, 76% growth
2006, $92.6 billion, 58% growth
2007, $148.4 billion, 60% growth

In that time, total public market transactions have also skyrocketed. The following data includes IPOs, secondary offerings, and convertible bond issues:

2004, $800 million
2005, $5.6 billion
2006, $12.6 billion
2007, $27 billion

Take a look at just one more set of data. These are total green venture capital and private equity numbers from early stage through over the counter listing:

2004, $2.4 billion
2005, $6.4 billion
2006, $9.3 billion
2007, $13.5 billion

These numbers are impressive, showing not only the strong growth of the renewables industry, but also indicating—via the 2007 venture capital data—that the industry is far from saturated and that billions are still being wagered on its future success.

But the effects of the credit crisis began to rear their ugly heads early in 2008, resulting in few new IPOs and stock prices down an average of 17.9%. This tightening of the markets spawned increased merger and acquisition activity, as it generally tends to do.

Yet for all the recession talk and bear banter, overall investment in green technology during the first half of 2008 has actually been above the levels seen during the first half of 2007.

And, according to Global Trends in Sustainable Energy Investment 2008:

Although asset finance is down somewhat, venture capital and private equity invesment, public market capital raising and stock prices are all healthy, indicating that the finance community still sees strong fundamentals underlying the sector and is increasingly looking to take part in its future growth.

Investment between now and 2030 is expected to reach $450 billion a year by 2012, rising to more than $600 billion a year from 2020. The sector's performance during 2007 sets it on track to achieve these levels, with the current credit crunch testing the market's resolve, but not dislodging it.

In many ways, our current sentiment as retail investors is out of line with the rest of our financial brethren. The problem is not a lack of investment—indeed, investment flows have continued to grow—but rather the broadening of the sector and the diversification of green investment options, which now run the full gamut, from primary energy production in the form of electricity and transportation fuels to demand-side management solutions for the end user, including smart grid technologies.

So yes, it's becoming more difficult to find a good green investment because of all the options. But it's certainly not impossible.

And it's Green Chip's role, along with our other publications, to help you do that.

Where's the Green Investing Money Going Now?

Despite the limelight shone on the solar industry, the wind industry has and continues to attract the most investment—$50.2 billion in 2007.

Although, solar's limelight isn't entirely undeserved, $28.6 billion of new investment flowed into that sector in 2007. Investment in solar has grown at a 254% clip since 2004.

Not surprisingly, most of that money traded hands in Europe, with the U.S. in second place. But China, India and Brazil are attracting a growing amount of capital as their share of asset investment has doubled since 2004.

A large portion of green investment ($84.5 billion) in 2007 went toward building new sustainable energy assets. This is a result not only of factory and capacity expansions, but also of massive installations of solar systems are wind farms.

When put together, wind, solar and biofuels accounted for about 85% of new investment in 2007. Here's the chart of total green investment in 2007:

But the chart for just public market green investment looks strikingly different:

Public markets are dominated by wind and solar alone, to th tune of 81%. This is obviously where our money should be as well.

A good place to start is probably with Iberdrola Renovables (MCE: IBR), whose $7.2 billion IPO last December accounted for over half the money raised in 2007 via initial public offerings.

That's an installation play, and a good one. For a turbine play, try the company with which Iberdrola recently inked the biggest wind transaction ever, Gamesa (MCE: GAM).

On the solar side of things, production is still very much key. You should be looking for mid-size companies with extensive growth and expansion plans that have a steady supply of raw materials.

Solarfun (NASDAQ: SOLF) is one such company. Members of the Alternative Energy Speculator have already seen gains in excess of 60% on that stock. And there's probably more upside to be had.

Installers of both traditional solar and concentrating solar will also begin to receive increased attention.

We'll continue to cover broad topics like this again in my next issue of the Green Chip Review. Instead of focusing on which sectors are getting the public and asset money, we'll focus on the up-and-comers claiming victory in green venture capital and private equity.

In the meantime, don't miss another day's worth of profits by sitting on the sidelines.

The team of analysts at the Alternative Energy Speculator has uncovered an undervalued company operting in the green energy space. Their technology could be a game-changer, and deliver massive profits to those who get in early.

Call it like you see it,

Nick

The Pickens Energy Plan

Chalk another one up to clean technology.

Legendary Texas oilman, billionaire and America's 117^th richest person, T. Boon Pickens, has unveiled a $58 million public relations blitz focused on persuading Americans to reduce their dependence on foreign oil by turning increasingly to natural gas and wind.

Called The Pickens Plan, the project calls for an estimated $1 trillion government investment to displace electricity currently produced with natural gas with clean wind power.

Then, the resultant excess natural gas capacity would be used to power cars and trucks.

T. Boone, the plan's creator, says it would alleviate hundreds of billions of dollars currently spent on oil while creating thousands of U.S. jobs.

According to Pickens, ""I've drilled more dry holes and also found more oil than just about anyone in the industry. With all my experience, I've never been as worried about our energy security as I am now."

But don't get it twisted. Pickens isn't hugging trees just yet. It's all about the bottom line, and T. Boone is heavily vested in both the wind and natural gas industries.

In fact, he's spending $12 billion on what could prove to be the world's biggest wind farm—in Texas, of all places.

Another of his ventures, Clean Energy Fuels (NASDAQ: CLNE), builds and operates natural gas fueling stations for vehicles.

Said Pickens: "Don't get the idea that I've turned green, my business is making money, and I think this is going to make a lot of money."

Making Money with The Pickens Energy Plan

According to The Pickens Plan website:

America is in a hole and it's getting deeper every day. We import 70% of our oil at a cost of $700 billion a year - four times the annual cost of the Iraq war.

I've been an oil man all my life, but this is one emergency we can't drill our way out of. But if we create a new renewable energy network, we can break our addiction to foreign oil.

Breaking that addiction is shaping up to be a multi-billion dollar business, and the "Oracle of Oil" is placing his bet right now.

It's probably wise to follow his lead. In addition to Energy & Capital, Pickens was one of the few insiders calling for $100 oil when that price seemed unfathomable. And the realization of his most recent call for $150 oil seems imminent.

Even if all the points of the plan don't come completely to fruition, the wind and natural gas industries are still poised for a boon.

Just in July, T. Boone's natural gas provider Clean Energy Fuels has:

been awarded a five-year contract from the City of Akron to operate and maintain the fueling station for the city's 45 full-sized compressed natural gas buses
received two liquefied natural gas supply contract renewals from the City of Phoenix that will add $6.7 million to the company's bottom line
secured nearly half its supply of natural gas through June 2011 by entering into an extended definitive agreement with its supplier, Williams Four Corners

Clean Energy Fuels is probably a good place to be. More and more fleets, both governmental and corporate, are switching to natural gas vehicles everyday, for both economic and ecologic reasons.

As this trend plays out, all those fleets are going to need natural gas fueling stations. And Clean Energy is the foremost player in that game.

Another lucrative way to play the emergence of natural gas vehicles would be to invest in the company making natural gas engines. This report has all those details.

The Windier Side of Energy

Pickens isn't just betting on natural gas. He also has ambitious plans to build the world's largest wind farm on the Texas panhandle—for a modest $12 billion.

Back in April. T. Boone made the first down payment on 500 wind turbines at a cost of $2 million dollars each. GE (NYSE: GE) was the lucky beneficiary of that transaction.

But that initial $1 billion (for the 500 turbines) hardly puts a dent in the now $12 billion price tag—the project was originally estimated to cost a mere $6 billion.

By 2012, about 2,700 turbines are slated to be erected on 200,000 acres of the Texas panhandle. That's four times bigger than the word's current largest wind farm.

When finished, 4,000 turbines will crank out enough electricity to power over one million homes.

But a billionaire-oilman-turned-wind-investor isn't the only indication of the momentum the wind sector possesses.

In 2007, wind received the most investment dollars of any clean technology with $50.2 billion, or 43% of all new green investment. It was also the leader in 2006 when it was responsible for 38% of new investment.

The wind industry also dominated asset finance in 2007, receiving about $38.9 billion or 46% of all new-build asset investment, which basically means steel in the ground in the form of either wind farms, solar power plants or biofuel production facilities.

To date, 94 gigawatts (GW) of wind capacity have been installed worldwide, with 20 GW coming online in 2007, led by the U.S., China and Spain.

Wind also received the most public investment in 2007, raising $11.3 billion. It should be noted, however, that $7.2 billion of that investment came just from the IPO of the world's leading wind installer and wind farm manager, Iberdrola Renovables (MCE: IBR).

The wind industry has also been a favorable environment for exits of venture- and private equity-funded companies, as well as for mergers and acquisitions. This has been evidenced by Energias de Portugal's $2.93 billion purchase of Horizon Wind and Scottish & Southern Electric's $3.2 billion purchase of Airtricity.

More recently, investor interest in wind power has heated up due to a report from the U.S. Department of Energy claiming wind can provide 20% of all U.S. Electricity needs by 2030.

For that to happen, more than half a trillion dollars needs to be invested in new turbine manufacturing capacity and capital projects. Just in the first quarter of 2008, the U.S. Installed 1,400 MW of new wind capacity with a price tag of $3 billion. Expect that trend to continue and expand.

The way to profit from this part of Pickens Plan is to stake your claim now in a variety of turbine manufacturers, both foreign and domestic, and also in wind farm developers and owners.

These could be juggernaut wind companies like Vestas Wind Systems (COP: VWS) and Gamesa (MCE: GAM), or in large development firms like Fluor (NYSE: FLR).

Of course, there's also a handful of smaller companies that stand to make a fortune as the wind industry continues to mature.

While it's nearly impossible to say which of those smaller companies are going to succeed as this story unfolds, we'll be providing daily and weekly commentary and recommendations on the matter in all of our publications:

Get ready for a literal windfall of profits.

Call it like you see it,

Nick

Green Energy Investments

So the markets are in the pits. Earlier this week, patrons were lining up for hours—predawn hours—to withdraw money from their failing banks. And the Dow recently hit it's lowest point since July. . . of 2006.

At this point, many portfolios are in a holding pattern. The so-called credit crunch, and the resultant housing collapse and severe stock market downturn, has led to the shrinking of savings and the defaulting of millions of mortgages.

And yet, there's no point in selling—houses or stocks. Why sell a long-term investment for less than you paid for it, especially if it's likely that the price will rise again in the next few years?

The same holds true for green energy investments. Some stocks that you've picked up so far may be showing red returns at the present time. But as long as you're willing to hold out, they'll rise again once market conditions begin to improve and policies are put forward that actually deal with our energy and environmental problems instead of just implementing laws du jour aimed only at swaying public opinion or cushioning constituents' bottom lines.

With that in mind let's take a look at the current state of the renewable industry from a purely monetary standpoint, in an effort to identify which areas are ripe to buy in troubled waters.

Green Energy Investments: Growing, Growing

First and foremost, green energy investing has been, and will continue to be, a runaway train scenario. Check out the total annual green investment data for the past few years:

2004, $33.4 billion
2005, $58.7 billion, 76% growth
2006, $92.6 billion, 58% growth
2007, $148.4 billion, 60% growth

In that time, total public market transactions have also skyrocketed. The following data includes IPOs, secondary offerings, and convertible bond issues:

2004, $800 million
2005, $5.6 billion
2006, $12.6 billion
2007, $27 billion

Take a look at just one more set of data. These are total green venture capital and private equity numbers from early stage through over the counter listings:

2004, $2.4 billion
2005, $6.4 billion
2006, $9.3 billion
2007, $13.5 billion

But the effects of the credit crisis began to rear their ugly heads early in 2008, resulting in few new IPOs and downward pressure on most stocks. This tightening of the markets spawned increased merger and acquisition activity, as it generally tends to do.

Yet for all the recession talk and bear banter, overall investment in green technology during the first half of 2008 has actually been above the levels seen during the first half of 2007.

And, according to Global Trends in Sustainable Energy Investment 2008:

Although asset finance is down somewhat, venture capital and private equity invesment, public market capital raising and stock prices are all healthy, indicating that the finance community still sees strong fundamentals underlying the sector and is increasingly looking to take part in its future growth.

Investment between now and 2030 is expected to reach $450 billion a year by 2012, rising to more than $600 billion a year from 2020. The sector's performance during 2007 sets it on track to achieve these levels, with the current credit crunch testing the market's resolve, but not dislodging it.

So yes, it's becoming more difficult to find a good green investment because of all the options. But it's certainly not impossible.

And it's Green Chip's role, along with our other publications, to help you do that.

Where's the Green Investment Money Going Now?

Despite the limelight shone on the solar industry, the wind industry has and continues to attract the most investment—$50.2 billion in 2007.

Although, solar's limelight isn't entirely undeserved, $28.6 billion of new investment flowed into that sector in 2007. Investment in solar has grown at a 254% clip since 2004.

When put together, wind, solar and biofuels accounted for about 85% of new investment in 2007. Here's the chart of total green investment in 2007:

But the chart for just public market green investment looks strikingly different:

Public markets are dominated by wind and solar alone, to the tune of 81%. This is obviously where our money should be as well.

A good place to start is probably with Iberdrola Renovables (MCE: IBR), whose $7.2 billion IPO last December accounted for over half the money raised in 2007 via initial public offerings.

That's an installation play, and a good one. For a turbine play, try the company with which Iberdrola recently inked the biggest wind transaction ever, Gamesa (MCE: GAM). Of course a wind ETF like First Trust Global Wind Energy (NYSE: FAN) or Powershare's Global Wind Energy (NASDAQ: PWND) could also do the trick.

On the solar side of things, production is still very much key. You should be looking for mid-size companies with extensive growth and expansion plans that have a steady supply of raw materials.

Solarfun (NASDAQ: SOLF) is one such company. Members of the Alternative Energy Speculator have already seen gains in excess of 60% on that stock. And there's probably more upside to be had.

Installers of both traditional solar and concentrating solar will also begin to receive increased attention.

We'll continue to cover broad topics like this again in my next issue of the Green Chip Review. Instead of focusing on which sectors are getting the public and asset money, we'll focus on the up-and-comers claiming victory in green venture capital and private equity.

In the meantime, don't miss another day's worth of profits by sitting on the sidelines.

Green Chip International is quickly growing a portfolio filled with green juggernauts located outside North American borders in parts of the world receiving not only more investment, but better policy as well.

And Alternative Energy Speculator is picking up the growth opportunities here in the U.S. and Canada. That portfolio is currently boasting six double-digit winners with 3 over 60%

Call it like you see it,

Nick

Bush, Really?

I keep a special bookmarks folder entitled, 'Bush, Really?', for my own personal amusement.

They're mostly news clippings of comical things our leader does, from asking a blind journalist why he's wearing sunglasses to times he's shielded people in his administration from testifying or being held accountable for their actions and, of course, the time he vetoed an expansion of children's healthcare that was to be funded by an increase in the cigarette tax.

They're just little souvenirs I picked up along the way of what I'm convinced will be one of the most remembered presidencies in history.

While I certainly don't catch them all (who could?) and I generally try to limit my politics in writing, I feel compelled to share the most recent 'Bush, really?'.

The story didn't really make waves here in the U.S.—I often find some of the best 'Bush, Really' items come from foreign news services, even ones concerning domestic policy—but I'm sure the rest of the world had a laugh at his (and our) expense.

At the close of a private meeting at the recent G8 Summit in Japan, Bush, in all his diplomatic splendor, ended the meeting with the words: "Goodbye from the world's biggest polluter."

Pause. Shake your head.

Here's what happened immediately after, quoted directly from the UK's Telegraph: "He then punched the air while grinning widely, as the rest of those present including Gordon Brown and Nicolas Sarkozy looked on in shock."

Pause again. Shake once more.

Here's a picture that captures the essence of the moment brilliantly:

Now some will simply chuckle and dismiss the incident saying, "That's just Bush being Bush." And others will cry out, trying to use the quote as a catalyst for protest, rallying to incite action.

Personally, I think the man has one huge set of cajones to utter a careless comment like that, which illustrates his blatant disregard for the important issue at hand, in the presence of seven other world leaders and the press.

His Successor Will Bring Profits

Not to worry, the opportunities for Bush to embarrass himself and his country are growing smaller with every tick of the clock—we're down to about six months now.

And no matter who takes office next, the policy landscape for renewables inherently has to get better. Both McCain and Obama support limiting carbon emissions. And putting a price on carbon emissions means added value for renewables across the board.

Of course, one prospective president's candidates positions on the issues would benefit the industry more than the other's.

But either one has to be better than the man who:

allowed oil consumption to rise 3% since he famously said "America is addicted to oil"
opposed provisions to significantly raise fuel economy standards in the energy bill and threatened to veto the bill if they were not changed.
threatened to veto the energy bill because it included a renewable electricity standard that would have increased the use of renewable electricity up to 15 percent by 2020.
threatened to veto the tax incentives package that included incentives for plug-in hybrids and renewable fuels. Congress dropped these provisions because of his veto threat.
consistently opposed binding mandatory reductions of greenhouse gases proposed by the European Union and other allies during the G-8 and Bali climate talks.
blocked California's adoption of a 30% reduction in greenhouse gases from motor vehicles.
consistently ignored the views of scientists about global warming. The House Committee on Oversight and Government Reform reviewed government documents that "portray a systematic White House effort to minimize the significance of climate change."
saw oil's price rise over 300% during his tenure
obviously thinks offshore drilling will solve our woes (when it clearly will not)
didn't even know gas was approaching $4 when questioned about it by a reporter

No doubt about it, the renewable industry will benefit from a change in administration, and so will those who wisely choose to invest in it.

Just hope Bush doesn't try to do anything really crazy before he leaves. I mean, even his 'Bush, Really?' moments are showing signs of a deteriorating condition.

His latest one, the "Goodbye from the world's biggest polluter" comment, wasn't even correct. China overtook the top spot in 2006 by 8%.

He could've at least been accurate and said, "Goodbye from the world's biggest polluter per capita."

Call it like you see it,

Nick

Investing in Solar Installers

It's fair to say that, so far, solar installers have been the red-headed stepchild of the renewable energy investment world.

Their counterparts, module manufacturers and silicon suppliers, have been in a noticeably different boat. And rightly so.

You know the stories by now: First Solar, SunPower, and MEMC Electronic Materials. The list goes on.

And while some are still busy touting those stocks, their explosive potential has long passed. Don't get me wrong, there is still money to be made there—good, safe, clean, green money. Their classification is simply being shifted from 'growth stock' to 'value stock.'

Those are exactly the kind of stocks now covered by Green Chip Stocks—more stable, established green companies, capable of delivering good value over time. The smaller, more speculative plays now reside with the Alternative Energy Speculator.

When it comes to growth stocks in the solar space, I think investing in solar installers is the perfect place to look, given current market and legislative conditions.

Solar Installers and the Investment Tax Credit

As many of you are aware, Congress has failed to extend the investment tax credit (ITC) for solar energy (not to be confused with the production tax credit (PTC) that mostly affects the wind industry and is also at risk of expiring) that expires at the end of this year, despite numerous pieces of legislation aimed at doing so.

These are the two federal ITCs at risk:

Residential Solar Tax Credit: A 30% tax credit, created in the Energy Policy Act of 2005, for the purchase of residential solar water heating, photovoltaic equipment, and fuel cell property. Expires after December 31, 2008.
Business Solar Tax Credit and Fuel Cell Tax Credit: A 30% business credit, established in the Energy Policy Act of 2005, for the purchase of fuel cell power plants, solar energy property, and fiber-optic property used to illuminate the inside of a structure. After December 31, 2008, the credit reverts to a permanent 10-percent level.

Failure to extend these policies thus far—and worries that they won't be extended by year's end—has led to staunch downward pressure on many solar-related companies and all installers. That's because, without firm tax support, most solar installations simply aren't yet economically feasible for the consumer—even though eleven states are requiring a certain percentage of their power come from solar resources.

And when it comes to commercial and utility scale solar installations, equity providers are in the same boat; they're hesitant to provide capital for new projects because of the long lead times for construction and equipment.

Would you pony up money for a new solar project now that may or may not be finished by the end of the year, given that you're risking getting a guaranteed 30% back? Me neither.

Of course, blatant federal inaction is being overshadowed in many cases by overwhelming support from the collective states. Here's a rough list of programs going on around the country:

26 states with tax credits and deductions for renewable energy (federal policy expires Dec. 31)
29 states with property tax incentives for renewable energy (no federal policy)
21 states with state sales tax exemptions for renewable energy (no federal policy)
38 states with rebate programs for renewable energy (no federal policy)
31 states with loan programs for renewable energy (no federal policy)
24 states with grant programs for renewable energy (no federal policy)
42 states (plus D.C.) with net metering laws (no federal policy)

By the way, three cheers are in order for Arkansas, the only state that has none of the above policies, putting them on the same playing field as the federal government. But I digress.

Even with states picking up some of the legislative slack—California and New Jersey are particularly favorable areas—a lack of funding from the federal side has been enough to temporarily stall the industry.

But it's not all bad. And as green investors, we can leverage the panic to make some nice profits.

Investing in Solar Installers

Take, for example, this line from a recent Sacramento Business Journal article that was published on MSNBC: "When the tax credits expire Dec. 31, small solar power installation companies could be hit the hardest because they depend on new business in their local markets. But even large companies are scrambling to finish as many projects as they can this year."

Those things would be true if the extension was not passed. But I'm willing to bet Congress isn't willing to let that happen—not with the growing popularity of clean energy and the strength of their lobby.

Plus, most Congressmen and Senators—regardless of aisle side—know the extension needs to be passed, but they disagree on how to fund it. Taking money away from Big Oil and Hedge Funds goes against what has become a GOP stump issue, and would offend millions of dollars worth of constituents.

What's more, Congress notoriously waits until the last minute to pass energy- and tax-related policies. Such was the case with a wind power tax credit that was extended on December 18^th last year—it was due to expire two weeks later.

And if Congress fails to act, domestic solar companies will be forced to do business elsewhere, like Canada or Europe, where the policy landscape is much more favorable. Driving business out of the country is also a big political no-no.

So here's the deal: The battered state of a few publicly traded solar installers presents us with an excellent buying opportunity.

The shortlist of worthy solar installers begins with Akeena Solar (NASDAQ: AKNS), which, after ascending to over $16 in January, has been on a six month skid. Now below $5, this one is a bargain buy, especially since they just launched their much awaited and revolutionary Andalay Flat Roof Solar Power Systems and are making inroads toward the booming Mediterranean market.

Also worthy of noting is Real Goods Solar (NASDAQ: RSOL), the solar installer spin-off from sustainable lifestyle juggernaut Gaiam (NASDAQ: GAIA). Those guys simply couldn't pick a worse time to IPO, in early May, during some seriously tumultuous times for the market and a period of instability for policy.

Real Goods came to market strong, in the high $8 range, but has never traded higher than that, and has since slipped down to under $6.50. While I don't fully understand why this company is valued higher than Akeena, it is also a reasonable stock to get into before the tax credit gets extended.

But the third solar installer on my list is one I'm very interested in. In fact, I'm more than interested; I've already written the company up and will be recommending it to readers of the Alternative Energy Speculator this week—possibly tomorrow.

Not only is this company operating in the most profitable regions of the U.S., they're also expanding operations to include the Mediterranean market. This company also has proprietary energy management software that has exciting smart grid implications. That software also provides a monthly revenue stream in addition to solar installations.

Best part is, the stock is currently trading under a dollar, so there's minimal downside. Buying in now will offer you the greatest upside before the ITC gets extended and after.

But you have to be a member of the Alternative Energy Speculator to get in on this one. If you do, the subscription fee can more than pay for itself.

Call it like you see it,

Nick

Investing in Algae Biofuel

When the price of oil rises just one dollar, the Pentagon's fuel expenses climb an astounding $130 million.

So the $50 rise in oil prices over the past six months has taken over a half billion dollar toll on the U.S. government. And that's on your dime.

Obviously the massive machinery needed to transport troops and equipment by air, land and sea is the reason for the military's high fuel use. But just how much does the Defense Department—the government's largest consumer of petroleum products—spend on fuel?

According to Lt. Col. Brian Maka, "we anticipate over the next three months that the increase in fuel costs for the department [will be] $1.2 billion." With a fuel bill like that, you can bet the Pentagon is going to use its huge R&D resources to look for alternative fuels, including algae biofuels.

In fact, back in February, the National Renewable Energy Laboratory (NREL) and the Air Force Office of Scientific Research (AFOSR) held a joint summit with outside experts to to discuss a variety of issues related to algae biofuel production for jet fuel.

I know more than a few of you are interested in investing in algae biofuel, so let's take some time to explore the basic economies, capacities and companies associated with algae biofuel production.

Problems with Current Fuels and Biofuels

In order to determine the benefits of algal oil, we first have to identify some of the problems that it could solve. Many of these issues are well-known, but they're certainly worthy of repitition.

The most obvious is a shortage of petroleum reserves and supplies increasingly being attributed to peak oil. And then there's the rapidly rising price of petroleum, which has gone up 90% in the past year—and is constantly breaking new highs.

What's more, the U.S. has a serious energy security problem. We consume 20.7 million barrels per day (bpd), while importing 12.4 million bpd—leaving us 60% dependent on petroleum imports.

And while crop-based biofuels initially offered a glimpse of relief, their contribution to rising fuel prices (even though drought, lower yields and higher demand are the main causes) has led first generation biofuels to essentially be labeled the fourth member of the Axis of Evil.

But what most don't realize is that rising food prices also hurt crop-based biofuels producers, who obviously have to pay higher prices for their feedstocks like corn and soy oil. Soy oil prices, one of biodiesel refiners' favorite feedstocks, have risen more than 35% in the past six months.

So more and more, the industry is realizing that crop-based biodiesel is not the most promising avenue, what with unstable prices and their limited capacity. NREL, for example, deemed that the entire U.S. soybean crop could only provide about 2.5 billion gallons per year (bgy) of biodiesel. And worldwide production of biodiesel from all oilseed crops can only yield 13 bgy.

That's less than a drop in the bucket when you consider U.S. diesel demand alone is 60 bgy. So at the end of the day it's a food vs. fuel issue, not on a cost basis—food prices are going to rise anyway—but on an availability basis.

Benefits of Algae Biofuels

Significant production of algae biofuels could solve a great deal of those problems.

That's because algae, or microalgae, has a much higher productivity potential than crop-based biofuels.

Here's a chart showing various feedstocks and their potential oil yield per acre. (note: g/m2/day is the harvest rate of the algae and % TAG is the percentage of triglycerides

These high yields can be attributed to algae's high growth rate, which is often monitored in hours instead of days, and has inputs of only land, sunlight, water, carbon dioxide (potential for carbon credits) and nutrients.

And while deriving fuel oil from algae has been cost prohibitive in the past, oil on its way to $150 per barrel or higher certainly makes it an attractive alternative.

Plus, the algae growth cycle can actually be used as a carbon sequestration mechanism because carbon dioxide is the primary input required by algae to grow. In fact, if the U.S. were to derive all its diesel from algae (60 bgy), the growth of that algae could displace 56% of U.S. power plant emissions.

Growing algae is also very water efficient. Producing enough to make 60 bgy of biodiesel could require as little as 16 trillion gallons of water. To put that in perspective, we use 4,000 trillion gallons of water per year to grow corn in the U.S.

The best part is, algae can grow in brackish, saline and wastewater, further reducing the amount of freshwater needed to grow it. And the nutrients in wastewater actually feed the algae, making it possible to cultivate at any one of the 5,100 wastewater treatment facilities nationwide.

And the benefits go on.

No one country (or host of hostile countries) has a monopoly on algae production or the algae production equipment.
Algae can grow in temperatures ranging from below freezing to 158 degrees Fahrenheit
It is not in direct competition with food crops
There are a multitude of algae biofuel value-added byproducts like syngas, high-protein animal feeds, agricultural fertilizers, biopolymers (plastic), glycerin and even ethanol and jet fuel.

Investing in Algae Biofuel Companies

There have been limited investment opportunities so far in the algae biofuel arena despite all its promise and potential. So far, it's been sort of a throw it at the wall and see what sticks kind of strategy.

This is so because of the fair amount of companies pursuing the technology, each keeping their methods and processes under lock and key.

Here's a list of some companies dabbling in algae growth, harvesting and algae biofuel production:

GreenShift Corporation (GERS.OB)
Nanoforce Inc. (NNFC.PK)
Valcent Products Inc. (OTCBB: VCTPF)
Green Star Products (Pink Sheets: GSPI)
OriginOil, Inc. (OTCBB: OOIL)
PetroSun Inc. (Pink Sheets: PSUD)

But don't let the presence of all these tiny companies fool you. This is a legitimate technology also being pursued by the big boys, like Royal Dutch Shell (LSE: RDSA).

If I had to place a bet right now, I'd lean toward OriginOil or Valcent, but that's based purely on proven work and technology development to date.

This is still a nascent industry that's receiving gobs of money in the venture capital realm. When the dust settles, it could be a tiny start-up company (like the one springing up from major research institutions around the country) that find a winning solution.

One thing is for sure, this is exactly the kind of opportunity we love at the Alternative Energy Speculator: new technology with an enormous upside.

As this scenario unfolds, you can be sure those readers will get first crack at any companies capable of bringing algae based fuel to market in a scalable fashion.

So sign up today to make sure you don't miss it, and you'll be taking other alternative energy related profits in the process.

Call it like you see it,

Nick

Investing in Electric Vehicles

If you think $4 at the pump is bad, just wait. It's not getting better anytime soon.

By now, we've heard all the reasons for escalating prices: rising demand in India and China, a falling dollar, speculative trading and many others.

But the one that receives the least attention—and the one that is most patently obvious—is a clear-cut and well-documented minimal margin of supply over demand—about 1%-2%. And don't expect that margin to grow anytime soon. Even with the discovery of a few minor new fields, the increased capacity (after the years it would take to develop) would hardly be enough to put a dent in now skyrocket demand.

Yet proposed solutions have been coming from high and low as to how we can secure our energy independence, or at least ease the pain of rising energy prices.

So far, we've heard:

a gas tax holiday
ANWR
increasing CAFE standards
suing OPEC
ceasing the filling of the Strategic Petroleum Reserve
opening off-shore drilling and
many laughable others

So let's see. . .

The gas tax holiday was merely an election season novelty and has no real substantive base.

ANWR, according to the Energy Information Administration, "would only slightly reduce America's dependence on imports and would lower oil prices by less than 50 cents a barrel." Plus, if Congress opened up ANWR today, oil wouldn't start flowing until 2013 and peak production would occur by 2025.

CAFE standards are (and have been) a joke. Even after a the overall standards were raised 27% in late 2007—for the first time in more than 30 years—they still are less-than-impressive, calling for a fleetwide fuel economy of 35 mpg by 2020.

BS alert: average fleetwide fuel economy in 1987 was 26.2 mpg, and has fallen since. So Detroit has to raise its average fuel economy less than 10 mpg in 33 years. That comes out to an increase of .30 mpg per year, and it's pathetic.

Suing OPEC is too preposterous to even address.

Halting deliveries to the Strategic Petroleum Reserve is one of the few measures that have actually been passed to combat high fuel prices. And while some economists argue that ceasing to fill the reserve could knock a few buck of the price of a barrel, the 60,000 bpd, which is only 0.3% of U.S. daily consumption, is hardly enough to help struggling supply gain ground on surging demand.

It's a good gesture though. And we'll see how it pans out when the reserve stops getting filled in early July.

And so we're left with opening U.S. shores to oil drilling, which, again, would take years to come to market and the long-term benefits still aren't clear. Short-term benefits to drilling off our shores are nearly non-existent.

Plus, this issue won't get a decisive conclusion until there is a change in administration—still seven long months away. And even if ANWR and offshore drilling are opened, the one million bpd they could possibly produce—and that's the most egregiously high estimate—would do little to quench America's 21 million bpd thirst.

Also, don't forget that oil is a global market. Any oil produced here would still be sold at the going rate, and that, by nearly all estimates, is never going below $85 again.

Investing in Electric Vehicles: The DIY Strategy for Energy Price Hedging

After that quick run-through of proposed fuel price solutions, it may appear as if there is no government help in sight. The market is in full control, at least for now.

While Congress dilly-dallies and the presidential candidates posture for poll position, it's up to consumers to fend for themselves.

Now, with the market's bottom hopefully behind us, it's possible to make some smart investments to help offset the cost. And if you do it right, you can invest in companies making the next generation of automobiles and energy efficiency devices. So you're literally investing in the future while hedging against present energy prices.

Take, for example, Altair Nanotechnologies (NASDAQ: ALTI), which designs, develops and produces nano lithium titanate battery cells, batteries and battery packs. They also offer testing services for batteries and battery applications.

The company made inroads to the electric vehicle industry when they became the battery provider of choice to Phoenix Motorcars—one of the first companies to bring an all-electric car to market.

Despite falling with the broader market for the first half of the year, Altair seems to be on the upward move again. It bounced off its 52-week low earlier this week, and I doubt it will stay below $2.00 for long. Take a look:

UQM Technologies (AMEX: UQM) is another electric vehicle company that's been doing business with Phoenix Motorcars. But instead of providing batteries, UQM specializes in propulsion systems, generators, converters and other power electronics.

Also down for a good part of the first half of the year, UQM has enjoyed recent upside. And as fuel and oil prices continue to rise, electric vehicles and hybrids are going to look increasingly impressive. So will the share prices of the companies involved in the sector. Take a look at UQM's recent bounce:

Folks, the electric vehicle and battery markets are in the very nascent stages. Many of the current orders—beyond the obvious success of the Prius—are coming from utility and government fleets.

But the market has so much more potential than that. Every one of the nearly 100 million Americans that drive less than 30 miles per day is a target.

We've already seen sales of traditional internal combustion engines plummet as ridership of public transportation and sales of electric vehicles surge.

This is only the beginning. When it comes time for those 100 million Americans to buy a new car, you can bet an electric option will be on the table. And that's just here in the States—there's an entire international market that ripe for the picking.

Of course, the addition of millions of electric vehicles to our nation's highway will also require billions of dollars be invested in infrastructure, including smart grid technologies and the like. But that's an entirely different article.

For now, try to ease that pain in the pump by taking profits from companies trying to do the same.

Call it like you see it,

Nick

PS. My colleague, Jeff Siegel, is one of the foremost experts on investing in electric vehicles. His service, Green Chip Stocks, has already taken profits from related companies. But like I said, this thing is just getting started. If you'd like a piece of the huge profits that await this industry, consider joining his service today.