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Alternative Energy: Two Plays for Green Days |
August 15, 2008 By Tobin Smith, Editor, ChangeWave Investing |


Tobin Smith
Tobin Smith is the founder and editor of ChangeWave Investing. He also serves as executive editor of ChangeWave MicroCap Investor, and contributes his weekly market outlook and editorial rants to ChangeWave's WaveWire e-letter, which is read by more than 250,000 investors each week.
Imagine if a guy named Thomas Edison walked into your boardroom and asked you and your board members if you'd be interested in backing a revolutionizing invention called the "incandescent lightbulb."
You would take him up on the offer, wouldn't you?
Today, nothing compares to the dramatic impact that green technologies–in alternative energy and clean technology–will have on consumers and businesses in the coming years.
A power-hungry world led by the United States and China is going to need increasingly more energy, and right now fossil fuels are the best bet to meet the demand in the near-term. That's truly unfortunate, not only because of the obvious negative environmental effects of oil and coal power plants, and gasoline-powered transportation, but also for what it means to America's national security and economic well-being. Now, we don't intend to rail against the inaction in Washington, D.C., or all the problems mounting from the backward energy policy we're locked into, but know this: Change is coming no matter who heads the next administration (see also, "What Lower Oil Prices Mean for Your Portfolio").
Here's how to be fully invested in the multibillion-dollar solutions to the billion-dollar problems plaguing the Earth today. Let's start by looking straight into the sun!
Spotlight on Solar Stocks
Despite a slide during the rough patch the market suffered through the first quarter, solar stocks have found strength and are beginning to shine again.
At ChangeWave Investing, we've studied the top solar companies around the world. Many of these firms manufacture photovoltaic (PV) or what is commonly known as "solar cells" that convert sunlight into electricity. Several others occupy the supply-chain side of the food chain by providing the "feedstock" (polysilicon) and silicon wafers that form the substrate for the vast majority of solar cells today (see also, "5 Things You Need to Know About Solar Energy").
According to our ChangeWave Alliance, the solar industry's growth is being propelled forward by global photovoltaics manufacturers like SunPower Corp. (SPWR) and Suntech Power Holdings (STP) who are able to increase efficiencies and lower the cost-per-watt, thereby driving demand in both the industrial and home markets.
Speaking of demand, we all know massive wealth is created by large demand and even larger markets. Well, when it comes to solar power, the market for fuel cells has no boundaries (see also, "Alternative Energy Stocks: The Surge for Solar").
Invest in Alternative Energy That Runs Forever
Ever see the TV commercial for Eveready batteries featuring their trademark Energizer™ Bunny where he lights up the city? It seems there was a blackout in the city, and to get things lit up again, the power plant engineer called in the powerful little pink bunny.
Of course, there's no such thing as a fuel cell or hybrid battery capable of lighting up an entire city (at least not yet!) but the technology and the concept are not very far away.
In the not-so-distant future, the world will look a lot like Denmark, which already produces about 20% of its total electricity consumption from wind–and that figure will approach 25% this year.
The future world will run its electrical power on direct current (DC), not alternating current (AC), and transfer sustainable electrical power around the world–from sunny or windy locales to dark and windless ones.
The future home will run off...


