Green Stocks are Currently Cheap

Green Chip's Weekend Edition

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Saturday, May 29th, 2010

Welcome to the Green Chip Weekend Edition — our insights from the week in everything alternative and cleantech, as well as links to our most-read Green Chip and sister publication articles. 


On Wednesday, I made the contrarian case for cleantech.

I asserted that, given the past, present, and future growth projections for clean energy resources, stocks in the sector are simply undervalued.

Specifically in the solar sector, I pointed out Canadian Solar (NASDAQ: CSIQ), Trina Solar (NYSE: TSL), and Suntech Power (NYSE: STP) — noting they we're down between 20% and 40% in the past three months.

And I wasn't shy about what that meant for Green Chip investors:

Being able to recognize and buy those kinds of unjustified dips is how my readers make serious money in the market.

It's what Buffett calls "buying fear," and it almost always leads to above-average returns.

Had you listened, you are much wealthier today than you were earlier this week.

Take a look at a price table of the stocks I recommended you buy on Tuesday:

Stock

Low Price Tuesday

High Price Friday

Gain

Canadian Solar (NASDAQ: CSIQ)

$11.21

$13.45

20.00%

Trina Solar (NYSE: TSL)

$16.00

$18.20

14.00%

Suntech Power (NYSE: STP)

$9.20

$10.35

13.00%


You could've made three double-digit trades this week simply by reading a free newsletter — one as high as 20%.

You know how much the Dow has returned this year? Zilch. It's actually down a few percentage points since January...

So Are Most Cleantech Stocks

Take a look at this chart:

solar stocks 5-27-10

The blue line shows the Dow — down about 3% for the year — compared to the three solar stocks mentioned above.

The solar stocks are down much more than the Dow — anywhere from 35% to 55%.

Yet it was still possible, if you had the right know-how, to trade each of those stocks for great gains in the past week.

That's the benefit of knowing this market inside and out. If you know fair value for the stocks in the industry... you can buy when they fall below that value and make a profit every time — even if the stocks are broadly down or in a volatile state, like right now.

If you're a long-term, buy-and-hold investor, it's looking like a great time to load up on big names in clean energy and sit tight.

But if you're looking to make money in the short-term, they only way to do it is by getting comfortable with a group of stocks and trading them repeatedly when they fall below what is fair value.

In addition to the solar stocks I told free Green Chip readers about this week, I also recommended five stocks to Alternative Energy Speculator readers that I knew were undervalued...

We're sitting on double-digit gains from each and every one of them. And keep in mind that it's only been a few days.

To learn more about how to constantly recognize these patterns and make winning trades, you can read this report on the system I use to pick clean energy stocks.

In addition, you can catch up on the rest of this week's profit ideas below.

Call it like you see it,

Nick

Oil Spill Opportunities: Is It Wrong to Exploit the BP Oil Spill for Profits?
Green Chip
's Jeff Siegel discusses new profit opportunities stemming from the BP oil spill. 

The Contrarian Case for Cleantech: It's Time to Buy the Fear
Editor Nick Hodge takes a look at current consensus, current and future growth rates, fair value, and the contrarian case for cleantech stocks.

The Green ATF: Historic Policy Coup Creates a $30 Billion Market Overnight
One company just inked a contract worth 264% the company's entire market capitalization. That's a single project worth more than two and half times the company's total current value. It's a major undertaking, projected to generate enough revenue to boost the stock price as much as 171% in the short term, and Green Chip gives readers the name of the company in this new report.

Oil Spill Clean Up Stocks: These Companies are Working Overtime to Clean Up the Gulf Mess
Energy and Capital Editor Christian DeHaemer reveals to investors the oil spill cleanup stocks to own now...

Nuclear News: The Up-and-Coming American Company On Pace to Lead the Franchise
A little-known company is set to become the American nuclear franchise. Green Chip Stocks has already been right about this company – twice… Join us for a third round of profits as Obama ramps up nuclear development in the United States to replace fossil fuel dependence.

The Housing Bubble Bottom: Sorry Charlie, but the Bottom is Not in Yet
Editor Steve Christ takes another look at the housing bubble bottom and explains why it's as elusive as ever.

LED Stocks Set to Light Up the Sector: 5 Things You Didn't Know about the Light Bulb
Publisher Brian Hicks explains to readers five things they most likely did not know about the common light bulb as the stage is being set for explosive growth for LEDs in the sector.

Offshore Wind Energy in the U.K.: How to Profit from the Next Big Move in Offshore Wind Energy
Green Chip’s Jeff Siegel discusses the latest opportunities in offshore wind development.

Investment Lessons from America's Pastime: Why There's No Crying in Baseball
Wealth Daily Publisher Brian Hicks calls on a famous Yankee to provide a lesson that extends from the ball field to the stock market. 

BP Pulls the Plug on Gulf Spill: Offshore Oil Cleanup
Energy and Capital Editor Keith Kohl explains why BP's latest "top kill" operation could make matters worse.


Media / Interview Requests? Click Here.



Editor's Note: From solar and wind to geothermal and biofuels, Green Chip readers want to know which renewable energy resource will take over where fossil fuels leave off. The answer is...all of the above!

There is no one single solution to today's energy crisis. However, the combination of all viable renewable energy resources, coupled with energy efficiency, conservation and smart grid development will not only lead us to energy independence and a cleaner, more sustainable energy infrastructure — but also to what will soon prove to be the greatest investment opportunity of the 21st Century.







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