I am retired and take educated guesses on all things financial.

April 24, 2007

April 25, 2007: Alternative energy tidbits

My objective is very simple with the global warming theory: make money off it. Islamic-fascism is a much greater danger than the theory of global warming. Of course, by investing in companies developing global warming products, even if I think Al Gore is an idiot, I still am doing the right thing. Investing in productive technologies sure beats carbon credit scams. Win-win.

Four things are happening for sure:

1. Renewable energy is a growing field.
2. Emissions trading schemes are likely to be implemented in many countries.
3. There will be increased pressure on public companies to disclose risks their company(s) pose to climate change as well as their "green' credentials.
4. The insurance industry is studying the risks associated with climate change.

Rare Metals:

I am led to believe that investors may want to focus on price trends for rare metals.

Gallium, for instance is trending higher on growing demand from LED and blue-violet laser applications with expanding environmental markets. Gallium was up 43% last year. Best stock picks are in Japan: Sumitomo Electric Industries, Dowa Holdings and Toyo Tanso.

Ceramic Capacitors:

Multilayer ceramic capacitors (MLCCs) can store large amounts of energy in a minimum of space. MLCC makers are enjoying excellent earnings of late- with a long way to go.

Two companies leading the pack are Japan's Murata Manufacturing and Taiyo Yuden.

Johnson Controls (JCI) has green appeal. They have a large and rapidly growing building efficiency business and a leading position in the lithium ion for hybrid vehicles. Cramer has mentioned this stock a few times for these reasons. I believe he is correct. It is appealing for purchase on a pull back.

Kyocera (KYO) has a unique solar cell business, and has gotten many other divisions of the company to function more efficiently. It has yet to be recognized as a solid green player.

Schneider (SCHN.PA) or SBGSF is a German company that thrives on lowering electricity consumption. It is appealing for purchase on a pullback.

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