Green Stocks 2010
Three Green Stocks that Could Double Your Money
Every year, as Earth Day noisily approaches, the traffic to our site increases dramatically. And with that traffic comes an avalanche of e-mails and questions.
One question in particular that I'm never tired of answering is: What are green stocks, and how can I profit from them?
For us, "green stocks" represent the investments that will allow us to end our reliance on foreign oil; build a stronger, safer, cleaner energy infrastructure; and provide environmentally-friendlier solutions for industries that typically carry a heavy environmental footprint.
So with that out of the way, let's focus on the real reason most of us are here: profiting from green stocks.
Specifically, three green stocks that are currently trading at significant discounts and could easily be worth double by this time next year.
Here's the first...
A Sleeping Giant
From time to time, you may find me referring to geothermal energy as the sleeping giant; it is an extremely powerful form of renewable energy that often gets overlooked. Let's face it, solar and wind are a lot more visible than geothermal wells in the Nevada desert.
But geothermal does have one bragging right — a very important bragging right — that solar and wind can't touch: it can run 24 hours a day, 7 days a week. In fact geothermal power plants typically run at 89% to 97% uptime. Not even coal or nuclear power plants can boast those figures.
Now there really are only about a half dozen pure play geothermal companies out there. And only about half of those actually have operational power plants in place and are generating revenue. One in particular is U.S. Geothermal (AMEX: HTM).
U.S. Geothermal currently has two geothermal power plants in operation, both of which are sending power to the grid and generating revenue right now.
One is a small operation in Washoe County, NV, where Sierra Pacific Power Company purchases the power under a power purchase agreement that continues until 2017.
The other is in Raft River, Idaho. This is actually the only geothermal power plant in the Gem State. It's also the site where the company — along with the DOE — is testing a new geothermal technology that could increase geothermal's generating potential by 40 times. This is huge!
U.S. Geothermal landed $10 million from the DOE for that deal.
The company is also developing a new project in eastern Oregon. Development of this project is well underway, and a 25-year power purchase agreement has already been signed with Idaho Power Company.
My friends, based on just the power plants currently in operation and the value of the purchase power agreements associated with those power plants, this is easily a $2.00 stock. And once that Oregon site goes online, the value of this thing — just based on power rates and the increase of megawatts in the company's portfolio — will be worth closer to $4.00.
Today, the stock trades for less than a dollar!
So if you're looking for a solid, long-term growth play, this is definitely one of your best bets.
Now let's move on to our second green stock. This one is going to make us a boatload of money, thanks to...
The Most Valuable Commodity in the World
And, no, it's not oil... It's water.
And lack of fresh water will absolutely prove to be a crisis of such magnitude, it'll make the energy crisis look like playtime in kindergarten:
884 million people lack access to safe drinking water;
Less than 1% of the world's fresh water (or about 0.007% of all water on earth) is readily accessible for direct human use;
At any given time, half of the world's hospital beds are occupied by patients suffering from a water-related disease.
So it's no surprise that we're seeing a number of companies today looking to provide services that enable the treatment of polluted water. And one place you're sure to find plenty of polluted water is in and around mining operations.
BioteQ Environmental Technologies (TSX: BQE) is taking full advantage.
BioteQ Environmental partners with mining operations to build and operate water treatment plants. These plants treat wastewater contaminated with dissolved heavy metals and sulphate, produce clean water that can be discharged safely into the environment, and recover leftover metals that can then be sold.
The company has already recovered several million tons of zinc, copper, and nickel valued at more than $7 million.
Much like U.S. Geothermal, this is an extremely undervalued stock.
No matter how you slice it, mining is a constant. It is necessary for everything — including solar panels, wind turbines, and high-performance electric car batteries. But restrictions and regulations regarding wastewater will only increase going forward.
As the water crisis progresses, the conservation of fresh water and treatment of polluted water will become more and more valuable. And BioteQ is in a very sweet spot, as it has limited competition in this space.
At around $0.90 a share, this is a sweet deal. I don't expect this stock to trade for anything less than $1.60 by the end of the year, and well over $2.00 by this time next year as new water regulations in China, Canada, and the U.S. kick in in 2010/2011.
You definitely want to be at the forefront of this movement.
A New Wind Play Worth More than a Half Billion Dollars!
There are a number of wind turbine plays out there... Certainly, we've profited from quite a few of them.
But at the end of the day, one of the most profitable ways to play wind is through the wind farm developers — especially those operating in the state of California, where wind power is now being mandated by the state.
As we crossed over into 2010, a new state law went into effect; now, 20% of all power generated by California utilities must be generated from renewable sources.
The only problem is, not a single California utility has been able to meet this requirement. And this is why they're chasing down every single watt of wind power they can get in the Golden State.
This is also why we're so bullish on a single wind farm developer that is now building out a new wind project worth more $500 million.
The power purchase agreement has already been signed, and the company doesn't need a single penny of funding. It's all set — the project is now underway and those who own a piece of this gem right now are going to make a small fortune when that wind farm finally goes online.
It's all about beating the trend-chasers to the punch. And when it comes to wind, there's no better opportunity than this one.
You can read more about this wind developer here.
To a new way of life, and a new generation of wealth...
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