October 23, 2007: Alternative Energy notes

Picture: oil palm plantation in Malaysia

Snooping around some alternative energy issues. Algore (one name as many of my conservative friends call him) lies notwithstanding, readers know I believe that alternative energy technology and application into our the lives of the world population is a foregone conclusion. Here are some insights:

Yesterday, a leading CSFB analyst predicted a continuing tight supply of poly silicon. Thin film PV technology is coming back in the context of the poly shortage. The best stock to own is Motech (6244.TWO) of Taiwan. Other stocks include Trina ADR (TSL) and Tokuyama (4043.JP)

Salya Kumar, considered the best analyst of the solar power sector has broke with the street consensus and has raised his target price on Sunpower (SPWR) from $80 to $110. He believes, and justifies, strong end demand in solar during 2008 as higher ASP regions (European Sunbelt and Korea) ramp faster, and pull-ins even in Germany ahead of steeper feed-in tariffs (FIT) declines in 2009. He also states that better silicon utilization will upgrade efficiency of new Sunpower units by 23%.

Iberian utility Energias de Portugal (EDP.LS) is a strong buy with their wise acquisition of Horizon Wind Energy (the third largest company in the high-growth US wind energy market). Energias may also IPO their renewable energy business next year.

Palm oil, a favorite of mine, has a strong player to consider. Boustead Holdings Bhd. (BOUS.KL) has 71,000 hectares of crude palm oil plantations which are being ramped up for higher production and yield. Boustead also owns real estate and fabrication yards. Boustead is 60% owned by LTAT (Malaysian Armed Forces Pension Fund). This is an undiscovered gem.

Hyflux (HYFL.Si) is in a joint venture with BP and the Dalian Institute of Chemical Physics to use zeolite membranes to separate water from bio-ethanol. This Singapore company will have the Asian market to itself with this proprietary process and product.

All companies listed may well show a 300% increase in stock price over the next two years (except Sunpower).

Hopefully you may be able to locate more information on the internet. I am most interested in Boustead.