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The Difference Between News and Ideas

Green Chip's Weekend Edition

By Nick Hodge
Saturday, March 13th, 2010

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


I was writing an article this week about the history and development of the Green Chip websites, when I realized something few people may know...

We've been covering the green side of the market longer than anyone else.

Since before First Solar (NASDAQ: FSLR) and Suntech (NYSE: STP) were publicly traded...

Before an Inconvenient Truth finished filming...

Before terms like smart grid and cleantech were even coined...

We were giving green stock advice before wind turbines graced the plains, and certainly before CNBC and Bloomberg were quick to jump on the latest solar news.

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The Difference Between News and Ideas

Sometimes, I get frustrated when I put together these weekly news round-ups for you.

You see, many of the topics that are "news" now, we covered months — and sometimes years — ago... when they were merely ideas.

Take the Chinese cleantech boom, for example, which we've been touting since 2007. Back then, we told readers that China would be a clean energy force to reckon with, that their solar companies could produce at lower costs, that their non-democratic government could fast-track projects with minimal bureaucratic red tape.

As such, many of our readers have profited handsomely from our Chinese cleantech picks like JA Solar (NASDAQ: JASO), Trina Solar (NYSE: TSL), Hong Kong Highpower (NASDAQ: HPJ), and plenty of others.

But only lately, as the hindsight data is revealed, has the mainstream media jumped on board, with everyone from the Wall Street Journal to the New York Times touting China's cleantech abilities and the United States' laggard position.

It's not "news" until it happened.

But the profits are made while it's happening (... Whatever it is.).

That's the difference between news and ideas.

You read the news. You profit from ideas... and you usually read them here first.

This Week's News (And Our Ideas)

So it's news this week that Japan, South Korea, and China are spending $9 billion on "infrastructure and information technology to make electricity networks more efficient."

It's news, according to Reuters, because Zpryme, a market research firm, compiled the data and released a report.

But it's been an idea for the past year, as we constantly reported on the necessity of a smart grid to aid the deployment of renewable resources. Green Chip readers have profited from this idea... others are only now reading the news.

It was also news this week when a Chinese wind turbine maker, A-Power Generation (NASDAQ: APWR), announced it's building a production plant in Nevada. The plant will have an annual capacity of 1,100 megawatts and create 1,000 long-term jobs.

I guess it was only an idea on February 10, when I ran an article entitled, Chinese Cleantech Companies: Made in the USA (by China), in which I specifically mentioned A-Power and their plans for a U.S. plant.

In the month it took for that story to go from a Green Chip idea to mainstream news, the stock has gone up more than 17%.

In other news this week, German installer Phoenix Solar (XETRA: PS4) announced it's "expecting business in the ongoing first quarter to be significantly better than in the year-earlier period."

But we've been reporting on the German feed-in tariff cuts since last year, and how that would lead to more installations fueled by Chinese-built panels before the subsidies disappeared, i.e, higher business in the first and second quarters.

And finally, it was news this week that China and India signed up to the Copenhagen Accord for fighting climate change, after being lambasted by politicians and the media alike for stymieing the talks last December.

But we've been reporting on China's and India's ambitious climate energy and energy goals for some time now and how, in many ways, their goals are more ambitious than ours. In an article entitled The Clean Energy Battle: U.S. vs. China, I reported that China and U.S. actually have similar emissions targets, but China's are official policy while the U.S.'s are simply White House announcements.

So you could've known the real story before it hit the wire.

And that's really the point of Green Chip: To know the market so well that we're ahead of it. And by reading these pages, you are, too.

Our premium services take that one step further, and help you invest in green trends before others know about them.

We help you invest in the ideas that will be profitable when they become news.

You can read this week's ideas below.

Call it like you see it,

Nick Hodge

Nick

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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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Comments:

Comment by Lee Carrrier on 2010-03-13
Thank you for your insights into the complex and intricate details of the technologies and companies that are on the cutting edge of alternative and sustainable energy resources of the immediate and distant future.
Comment by Jaime P Imbat on 2010-03-13
Ideas comes first and if implemented it becomes news and probably become part of history.
All of the world now look for possible alternatives as fossil fuel demminish in supply and increase in price. and its dominant effect on the atmosphere ,there's no doubt all nations is looking for another source of renewable cleaner energy resulting to the birth of solar energy, wind energy and now the wave energy,this are ideas with positive result and become history. But all this is on the power sector,how about on the none power sector(factories , and industries that rely on trmendous heat for operation that consumate worlds energy by 50%. Thus biomass development will also dominate the energy.
Comment by Peter Webb on 2010-03-13
Good idea to let readers know how you are ahead of the curve on so many trends.In an information cluttered in box we all have one can forget the impact that various newsletters have to making a dollar.

I live in Australia and find your Global information very helpful

Thanks for your efforts in bring all this information to me

Peter