Blog > Oil and Energy > Blog article: Alternative Energy Stocks – Outlook for 2008
 | Email This Article Email This Article  | 

Alternative Energy Stocks – Outlook for 2008

Posted January 20, 2008

'The baton has definitely been passed. The U.S. and Europe only accounted for mid-single digits, about 7 percents each, of the total expansion we saw in 2007. We’ve seen something of a changing in the guard and these emerging nations are really ready to stand on their own.' – Nick Hodge of Green Chip Stocks

Baltimore – (TFN): Laura Cadden welcomed the return of Nick Hodge, editor of Green Chip Stocks, on this week's TFN's Smart Trading Action Alert. Nick gave his take on the prospects for alternative energy stocks in 2008 — and reveals a few of his favorites. The following was taken from the transcript. (Click here to watch the financial video.)

Laura Cadden: Global investment in alternative energy rose 35 percent from $86.5 billion in 2006 to $117 billion in 2007. This boom was partly driven by record levels in crude oil prices, rapid increases in energy demand – especially in China in India – as well as the increasingly popular politicizing of climate concerns worldwide. This unprecedented influx of investment dollars helped the industry to weather a widespread credit crunch, spurred by the subprime mortgage collapse that has kept other sectors flat. 

Accordingly, the WilderHill Clean Energy Index outperformed the Dow Jones Industrial Average by about 50 percent for the year. Indices connected to the clean tech sector outperformed their fossil-fuel derived energy counterparts by well over 40 percent. 

My guest today is Nick Hodge, editor of Angel Publishing’s Green Chip Stocks. So Nick, how will energy stocks fair in 2008?

Nick Hodge:I think they’ll continue to relatively well, as we saw in 2007.  There’s been some market-wide pullback spurred by the mortgage crisis and associated credit crunch, but I think we have to keep in mind that an energy crisis is very different from a mortgage crisis, and solving that energy crisis will help serve as a catalyst to lift the entire energy sector in general.

Laura Cadden: Within this energy sector are there are specific areas that should do better than others?

Nick Hodge: Well, solar has had its proverbial day in the sun, as we’ve seen reported in the headlines lately. This morning though, and last week, we’ve seen almost a pullback, a shakeout. Some of those stocks were overpriced, so I think we have to be careful not to buy those overpriced stocks and use these dips that we’re seeing this week to get the good buys

Rather just watch the financial video? Click here.

Laura Cadden: Now, Hillary Clinton, for one, has been discussing subsidizing energy efficient homes and cars. What industries besides the energy sector or solar do you see profiting from this trend?

Nick Hodge: Well, I think it’s important to note that those taxpayer dollars she’s talking of using to subsidize alternative energy are going to be pulled away from the money that we’ve given oil and gas the past decade or two decades and such. So it’s not additional taxpayer dollars. Beyond that, I think we’ll see both sides of the aisle in the presidential race talking about the energy crisis and climate change. So really, no matter who wins, I think we’ll see the energy sector, and renewable energy in particular, rise above that. Beyond solar, I think legislation could help fuel hybrid battery stocks and also biofuels.

Laura Cadden: Is there a chance that lower consumer spending and business investment in the United States could derail this boom at some point?

Nick Hodge: Well, I don’t think we’re seeing a boom at all. I think the energy crisis is going to continue to push the energy sector higher. And even if the U.S. does flirt with recession, as we’re seeing now, Europe and the Asian stocks are going to continue to push the energy sector higher as we see increased demand for commodities and energy.

Laura Cadden: So what is your favorite stock currently?

Nick Hodge: I think I’ll stick with Hoku Scientific. We’ve seen a little shakeout. It’s still relatively undervalued. Ian Cooper has since actually recommended it on his trading service. I really like that stock. It’s trading below $10.00 now, and I think we could see it to $15.00 or $16.00 very shortly.

Beyond that, I like Open Energy.  It’s down around $0.35, and really, all it needs a press release or two to deliver some monster gains.

To leare more about Nick Hodge's green investment research service, Green Chip Stocks, click here.

__________________________________________

The Biggest Solar Energy Project Ever

Using a source officially discovered by NASA in 1978, a small California company has perfected a way to harness the "Earth's Energy Budget," which NASA has measured at 174 Petawatts per day.

1 Petawatt of energy is enough to supply all of New York City for 10.5 years straight.

And this tiny California solar company, recently featured on NBC's Today Show, just figured out how to harness these Petawatts. In less than a decade, these systems will be on nearly every home and office building in North America. Learn more…

__________________________________________


Related Articles


Posted by Laura Cadden · Filed Under Oil and Energy 

Comments

close Reblog this comment
Powered by Disqus · Learn more
blog comments powered by Disqus