Fools (Not) Rushing In
Bill Paul wrote in the Motley Fool last week that though investers might be tempted to get in on some of the early stage AE companies with the price of oil so high, they might want to keep their powder dry. Dotcom-chastened Paul, now invests in companies that are already making money big time and his recommendations seem to AEman to require near-zero risk. And you know how the risk reward thing goes.
Still, here's a couple of points from Paul mapping big AE ventures to already large and successful public co's.
- "In the transporation sector, the recent surge in oil prices has clearly moved hybrids out of the niche category and into the mainstream. The two car manufacturers that clearly are best positioned to take advantage of hybrid technology are Honda (NYSE: HMC) and Toyota (NYSE: TM). Whether and when Detroit catches up is anybody's guess."
- "Meanwhile, environmental dilettantes in the U.S. battle over conducting wind power projects in places such as Martha's Vineyard because they wouldn't be pretty to look at, while wind power is revving up in other countries. Besides global warming concerns, wind power is getting a big boost from cost-lowering technological advances. With Congress recently renewing the industry's tax credits, U.S. development should soon pick up, too. While General Electric (NYSE: GE) is a wind power player, one doesn't consider buying GE for its alternative energy prospects. Rather, just as with hybrid cars, you have to look abroad. In my opinion, two big European companies that have U.S.-listed shares -- Denmark's Vestas (OTC BB: VWSYF) and Spain's Gamesa (OTC BB: GCTAF) -- are the industry's best-positioned players."
A little tame for AEman's tastes but he takes the point that conservative investors can now participate in the AE market. Who knows what the bleeding-edge maniacs will do?
posted by Andy Bochman at 8:39 PM
 
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