With a new year upon us, maybe a look back at the year past can provide some insight about coming troubles and ways to capitalize on them via market-based solutions.
According to a recent Lundberg survey, gasoline prices rose nearly 8% in 2007. That’s just a hair less then the Dow Jones Industrial Average (^DJI) which has risen 8.72% since January 3rd.
The price for U.S. gasoline rose to an annual average of $2.79 (I pay more than that now) in 2007, from an average of $2.57 in 2006.
That rise paralleled an increase in crude oil prices from about $60 early in the year to the $94 or so it’s trading at today.
With retail gasoline prices rising nearly as high as the market’s most accepted indicator, you can bet there are some bulls to be found in the energy market. And with oil prices rising, even today, alternative energy companies are poised to make a run.
On Christmas Eve, solar stocks were flying high, unworried about high polysilicon costs-the main material needed to produce solar wafers and cells. Industry mainstays gained, as well as some that only IPOed in the past two years.
Here’s a list of what happened on Monday, as reported in an AP Sector Glance article:
- Solarfun Power Holdings Co. (NASDAQ: SOLF) surged the most, posting a gain of $4.39, or 15.3 percent, to close at $33.15.
- LDK Solar Co. Ltd. (NYSE: LDK) rose $3.55, or 7.9 percent, to $48.68
- SunPower Corp. (NASDAQ: SPWR) rose $9.13, or 7.1 percent, to $138.15.
- Yingli Green Energy Holding Co. (NYSE: YGE) rose $2.24, or 5.9 percent, to $40.09.
- Canadian Solar Inc. (NASDAQ: CSIQ) rose $1.21, or 4.4 percent, to $28.55.
- JA Solar Holdings Co. (NASDAQ: JASO) rose $1.96, or 2.7 percent, to $75.43
And today looked just as promising for solar stocks. Before 10 a.m., all those stocks were in the green, with Solarfun up over 12%. In fact, Solarfun is up over 50% in just the past five trading days. Take a look at the chart:
But solar stocks weren’t the only alternative energy sector to thrust ahead in recent days.
Ultralife Battery Inc. (NASDAQ: ULBI) jumped about 14% in early trading today on news of a $40 million follow-on defense order to supply advanced communications systems. That’s after the original $62 million order was announced on December 17th.
The news catapulted Ultralife to an over 26% gain in the last five trading days. Take a look at that chart:
Of course, this is just further proof of why alternative energy stocks should be an integral part of your investment strategy. Even if it’s not a pure play, investing in companies that at least have partial exposure to the alternative energy market can help hedge your portfolio against rising energy prices that may limit the profit margins of companies in other sectors.So from solar and battery stocks to geothermal and biofuels, Green Chips stocks will give you the tips and research you need to stay ahead of the curve when it comes to this type of investing.
Our portfolio is up over 21% for 2007-much higher than the modest 8% of the Dow-and 2008 looks to be even better. To learn how to become a member of this phenomenal service at our discounted rate, click here .
Hope you had a wonderful holiday. We’ll discuss these types of stocks further in the new year.
Until next time,
Nick
