Tag Archives: Investing
Investing in Alternative Energy Stocks
Alternative energy stock portfolios are a great part of a modern investor’s financial plan, due to the fac that there is so much upward potential. These make excellent long term growth investment vehicles, and the money put into them by you, the investor, serves to further the cause of implementing the alternative energy power sources that we need as we sail into the 21st century and beyond.
Analysts predict that by 2013, the alternative energy industry will be a $ 13 billion dollar industry in today’s dollars. This figure bespeaks an enormous return on investment. Indeed, if you were to invest in a start-up alternative energy company, you might find yourself having invested in the next Microsoft in terms of return on investment. People are fed up with the rising costs of gasoline—while this alone is not sufficient understanding of the need for developing alternative energy sources, it is a factor which can act as a market maker—meaning for you that investments in alternative energy companies makes a lot of financial sense.
However, this does not mean that you don’t first want to do some careful research into alternative energy stocks, perhaps with the help of a financial planner.
“A few alternative-energy companies are going after the right markets but that doesn’t mean you should go buy every name in the sector. Investors need to be cautious about chasing the stocks,” says Sanjay Shrestha, who is an analyst at First Albany Capital. And if you are an investor, then you know that the problem in this sector is that nearly every single one of the major players in the alternative energy for profit game are start-ups or in the very early stages of growth. This means for you that they have relatively minuscule (even if rapidly growing) sales, and no expected profitability in the near term or history of earnings for you to be able to research. This can lead to some bubbling, as with what happened to the dot-com industry at the turn of the 21st century. Bubbling in the stock market is not a good thing for investors.
Ananlysts and financial planners can play a crucial role in helping you get it right with alternative energy investing. “We don’t play around in the tiny cap stocks that have technology and not much revenue—the ‘hope’ stocks. We invest in companies with clear cash-generation plans in place,” are the words of Ben walker, who is a senior portfolio manager at the Gartmore Global Utilities fund out of London.
Still, the outlook is very positive overall—and healthy. “It is good to see that the number of renewable energy funds and the amount of money flowing into these funds is increasing,” according to chief executive of UK alternative elecricity supplier Good Energy Juliet Davenport. “The renewable generation market is at an important stage in its development; it needs the continued support of the consumer, investor and government to ensure that it reaches its potential and really starts to make a difference to climate change.”
I am 33 years old Internet Marketing consultant and content writer from India.
Article by Wain Wright
Industries in the US are faced with the challenge to keep the rising energy expenses under control and the machines running. The rising concern over global warming and pollution are also keeping them under the constant scrutiny of environmentalists to reduce carbon emission. Many businesses are therefore finding it a requirement to switch over to green energy.
Green energy or renewable energy refers to the energy derived from unconventional sources, apart from conventional fossil fuel, such as – wind, solar, water, geothermal and the like. Usage of green energy has its many benefits for the industries.
Use of renewable energy definitely has cost benefits for the businesses. It helps them to put up with the rising cost of fossil fuel and other conventional energy sources.
The coal and oil reserve of the world is depleting fast but their demands over the years have kept growing, which has let the oil prices to rise continuously. The cost of fuel has in turn increased the operational cost of the businesses worldwide, which can also be considered as one of the major causes of recent economic meltdown.
Investing green energy though may require large initial investment but will help the businesses to curb their energy expenses in the long run.
Natural resources, such as – wind, solar, biomass, water are available in the nature in abundance and hence, investing green energy would ensure uninterrupted supply of energy. You no longer have to worry about the decision of the OPEC nations and its impact on the financial health of your business.
You can use the local resources of renewable energy and continue enjoying uninterrupted supply of energy for your business.
After all we have to live in this planet and hence we need to be concerned about its well being. Uncontrolled use of mineral oil has increased the overall temperature of the world which has altered the seasons in many places of the world. Hence, we no longer can ignore the necessity of an action plan which will help us to repair the damage done from carbon emission in the environment. Further, reserve of fossil fuel is limited in the world and is soon depleting. It is time that we start investing green energy before we run out of our conventional energy sources.
The Government is taking initiative to popularize the use of green energy with the businesses and hence tax and other benefits are available for the industries which are embracing green energy. Investing green energy is therefore a good way to get government grants and tax deductions. This can further help you in reducing your initial cost of investing green energy and improves your business books.
There are both economic and environmental reasons for the businesses to embrace green energy. Many businesses therefore invest green energy to improve their energy efficiency quotient. The high cost of setting up the initial green energy efficient environment can be compensated by the long term benefits of investing green energy. Investing green energy has helped the businesses to slash their energy expenses and the government incentives are simply the icing on the cake for them.
Green Energy has proven to meet the needs of millions. Future generations will come to depend on the ability of green innovations. To know more about this topic, visit investing green energy
The President hosted an event focused on “Investing in Our Clean Energy Future,” with experts from inside and outside government. On the table were how crucial investments in clean energy and new technologies are included in the budget. (public domain)
Video Rating: 4 / 5
Ocean Thermal Energy Conversion (OTEC) process and an ideal location in Puerto rico
Video Rating: 4 / 5