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.

I'm not going to sugarcoat it...

Clean energy profits in the market have been hard to come by.

In fact there are only a handful of green stocks that are in the black for the year.

This snippet from Reuters about an HSBC report reveals why:

"Regulatory risk is on the rise again and regulatory uncertainty has led to very poor wind and solar share price performance year to date," said the report, "Carbon default — real or imagined?."

Many low-carbon, renewable sources of electricity require government support to be competitive with fossil fuels, incentives now at risk especially where funded by public treasury rather than passed to consumers.

The BP oil spill may drive support for a U.S. clean energy bill, but the shape of that was unsure and time "rapidly running out" for passage before November mid-term elections.

The competitiveness of U.S. renewable energy faced an additional threat from low gas prices as a result of shale finds.

"Aggressive targets for clean energy are not being set, or where set, are not consistently being supported with effective planning and financing mechanisms," the report said.

In the U.S., tens of billions were allocated to cleantech via the stimulus. Only a fraction of that money has been allocated and distributed.

In the UK, the government last year penned ambitious plans for offshore wind expansion. But this week, the new coalition government announced plans to reign in the country's budget deficit, and now there's a funding gap of about $150 billion for those wind projects.

In the broader cleantech community, deal completion has all but come to a standstill. Projects that aren't purely profitable — without tax credits, subsidies, etc. — are having trouble getting off the ground.

And that's made it extremely difficult to turn a profit in the equity markets.

Cost is all that matters now

Last week, the senate failed to extend jobless benefits because it would've added to the deficit.

That pretty much sums up the current sentiment of the entire world: decrease spending.

I mean, we're willing — some are even demanding — that we resume drilling in the Gulf even as oil continues to spew. We're that desperate for cheap energy. And clean energy isn't cheap yet.

As a caveat, I'll note that clean energy will eventually be cheaper — or would be now, if we figure in environmental and war costs.

But we invest in the present, not the future. Anyone can buy TAN and FAN and wait.

So that means investing in currently viable alternatives — like efficient lighting — which are competitive and have proven return on investment without subsidies.

While solar and wind have offered lackluster returns this year, finding the right LED name has been an easy way to make cleaner profits.

Easy as 1, 2, 3...

It's unfortunate that global economic woes surface at the very moment we needed a serious energy transition.

The freezing of capital and credit took the wind out of an otherwise robust clean energy market. And the recovery has certainly left much to be desired.

But that doesn't mean we're packing up shop. It means we're working harder than ever to find winning picks for our members.

Gone are the days of loading up on whatever Chinese solar company was next into the earnings' gate.

Here's what I believe to be the way forward for the global energy industry in three profitable steps:

1. A move toward efficiency: Less capital intensive projects — lighting, smart grid, green building — that help us do more with less energy.

2. An increase in the use of natural gas: New shale finds have greatly increased reserve numbers, it's cheaper, and the New York Times reports its use could double in the next few decades.

3. A resumption of cleantech deployment: Once we can agree on a price for carbon and peel back fossil subsidies (both of which could be done in a comprehensive energy bill, which was delayed again this week), capital will once again start flowing to clean energy and electric transportation initiatives.

Each will have a profit angle. And, as always, we'll do our best to get you in front of it.

Call it like you see it,

Nick

P.S. The efficiency part of that trident is already under way. And the nat gas boom is just about to get started... Make sure to read this report on how we think that will play out — and how you can profit. Then, be sure to catch up on the rest of this week's coverage, below.

Tesla Motors IPO Set for June 29: What Investors Need to Know about this Electric Car IPO
Green Chip Editor Jeff Siegel discusses what may be in store for a new electric car IPO. 

Urgent Alert: Learn about this Game-changing Energy Play Before the Rest of the World Does
Alternative energy guru Nick Hodge has already been right about this company twice in the past… And as this game-changing nuclear outfit gets ready to change the energy game, only 81 spots remain for investors to take advantage of the information Nick has on file. You don’t want to miss out on this opportunity.

The Transocean (NYSE: RIG) Selloff: Overreaction in RIG Shares?
Wealth Daily Editor Ian Cooper explores Transocean's troubles and explains why it may be a buy as news gets out.

Once-a-Year Profit Window: What You Need to Know Before it Closes
For the last 15 years, one hardly-heard-of meeting has taken place once a year. And for the last 15 years, this obscure annual occurrence has handed only those energy investors who know about it — and what repercussions its outcome has on the energy sector — gains of up to 27,811%. Read our report so you can be among those who know just how important this annual soirée is to the world of energy — and to your portfolio.

Thank You, George W: How a 2007 Energy Law could Score You 18 Times Your Investment
On December 19, 2007, then-President Bush signed into law an energy bill that would soon transform the landscape of America – and guarantee this tiny engineering firm’s success. This new report from Green Chip Stocks has all the details.

Imperial Sugar (NASDAQ: IPSU): One Sweet Sugar Stock
Wealth Daily's Steve Christ takes a look at the dangers of high fructose corn syrup and identifies one of the winners as real sugar makes a comeback.

Gasland Raises Natural Gas Concerns for Investors: Have You Seen this Documentary on Natural Gas?
Green Chip Editor Jeff Siegel discusses a new documentary that's causing some investors to question the environmental sustainability of natural gas in the Marcellus region.

Mayors at Annual U.S. Conference Jump on Natural Gas Vehicle Bandwagon: America's Mayors Urging Congress to Pass NATGAS Act
Green Chip reports on a surprising new voice for natural gas transportation and its effects on natural gas investments.

Is Natural Gas the Future of Energy?: The Future of Transport is Here (and it's Not Electric)
Energy & Capital Editor Nick Hodge takes a look at the zero-sum oil game in the U.S. and reports that natural gas is about to be ushered in as the new fuel of choice.

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