TFN Special Report: The Top Alternative Energy Stocks Under $6
Today's Financial News - Posted August 27, 2009
The current lull in alternative energy stocks could spell a great opportunity to establish speculative positions in companies like American Electric Power Company, Inc. (NYSE:AEP), Valence Technology, Inc. (NASDAQ:VLNC), Power-One, Inc. (NASDAQ:PWER), Ballard Power Systems, Inc. (NASDAQ:BLDP), C&D Technologies, Inc. (NYSE:CHP), Exide Technologies (NASDAQ:XIDE), China Ritar Power Corp. (NASDAQ:CRTP)
by J. Christoph Amberger
Baltimore, MD — TFN: The White House wants to rebuild the U.S. energy grid.
One of its primary objectives is to reduce the nation’s reliance on fossil fuel for the generation of electricity.
Coal, oil, and natural gas are in disfavor. A complex web of open and hidden taxes and regulations — like the Cap-and-Trade scheme — are aimed at making their use as unattractive and costly as possible.
At the same time, Congress has earmarked billions of stimulus dollars to sponsor renewable energy.
But the current energy infrastructure poses some problems. It’s ill equipped to deal with new solar- and wind power-generated electricity.
Sun’s out, guns out!
Here’s the rub: Solar and wind power are ‘intermittent’ forms of energy. Unlike coal or natural gas or water pressure, it’s difficult to maintain steady levels of energy generation. Sometime the sun’s out, sometime it isn’t. Sometimes it’s windy… and sometimes you wish for even a slight breeze.
Efficient usage of such alternative energy depends on the capacity to store the energy that was generated… and release it as needed.
One way would be to place put a large number of batteries around a neighborhood hooked up to a solar grid. In fact, the U.S. Department of Energy is plowing more than $600 million into storage technologies.
The DOE and American Electric Power Company, Inc. (NYSE:AEP) a large electric utility based in Columbus, Ohio, intend to use batteries made for hybrid vehicles to create storage sites. These batteries are charged when surplus power is generated (maybe during especially windy or sunny days) and can release the stored electricity when needed.
Other solutions revolve around flywheels — metal rotors spinning in a vacuum inside a steel cylinder. Power is stored as rotational energy which can be reconverted into electricity during demand spikes.
There are other ways to store electricity: Water can be pumped up into elevated reservoir when demand is low, to be released through turbine generators when demand is high. Other methods include using the wind- or solar-generated energy to melt salts to store the heat… which then can used to drive turbines.
We have compiled a list of some of the best speculative energy storage technology companies that money can buy… if you have $6 to spend. They all have great speculative potential… and they all trade below $6.
Power-One, Inc. (NASDAQ:PWER)
Current Share Price: $1.31
Our Upside: $2.50 by March 2010
Power-One, Inc. designs and manufactures power conversion and management products, including inverters for roof-top solar systems, used in industrial applications and high-end consumer markets.
http://www.power-one.com
Ballard Power Systems, Inc. (NASDAQ:BLDP)
Share Price: $1.73
Our Upside: $2.50 by March 2010
If you’ve been around the energy investing block for a while, you no doubt will be familiar with the rags-to-riches-to-rags story of Ballard Power Systems,. The company develops, manufactures, sells and services proton exchange fuel cells for the automotive and industrial back-up power markets. BLDP just announced revenues of $13.1 million and net income of $0.01 per share for the second quarter ended June 30, 2009. Their core fuel cell products segment has grown 144% year over year, but this growth was largely offset by declines in “supporting business segments”. Profitability in Q2 was driven by a one-time accounting gain from unwinding a Japanese residential cogeneration systems joint venture. Still, a prime candidate for headlines speculation.
www.ballard.com
Valence Technology, Inc. (NASDAQ:VLNC)
Share Price: $1.55
Our Upside: $2 within 12 months
Valence Technology, Inc. is another of those stocks frequently pushed by financial newsletters as a possible moon shoot. The company develops, manufactures and markets “efficient energy storage systems” — including automotive and industrial batteries. Its upside lies in on-site back-up batteries for renewable energy power stations. VLNC just announced that for Q2 2010, it expects revenues of $3-$4 million.
http://www.valence.com
C&D Technologies, Inc. (NYSE:CHP)
Share Price: $2.13
Our Upside: $2.50
C&D Technologies, Inc. manufactures, markets, and distributes electrical power storage and back-up systems to large communications providers as well as electric utility service providers.
http://www.cdtechno.com
FuelCell Energy, Inc. (NASDAQ:FCEL)
Share Price: $3.70
Our Upside: $4
FuelCell Energy, Inc. develops and manufactures fuel cell generators for alternative electricity generation. Sure that doesn’t entail batteries, but they also produce integrated fuel cell back-up systems for plants that generate electricity using natural gas.
http://www.fuelcellenergy.com
Exide Technologies (NASDAQ:XIDE)
Share Price: $7.27
Our Upside: $10 by Summer 2010
Oops. This one has quickly moved above our $6 cut-off price. But I’ll include it anyway: Exide Technologies, through its Industrial Energy division, manufactures, markets, distributes and recycles industrial batteries that provide network support to electricity generating utilities, providing emergency or backup power and energy transfer operations. Also, Exide was awarded on July 30 2009 a $34 million grant for the development of more efficient hybrid vehicle batteries.
www.exide.com
China Ritar Power Corp. (NASDAQ:CRTP)
Share Price: $5.65
Our Upside: $7
China Ritar Power Corp. is not exactly a “green” stock pick. But when it comes to low-priced battery stocks, this maker of lead-acid batteries is a solid growth play rather than a green speculation. CRTP produces batteries for a variety of applications, including light electric vehicles and alternative energy production sites.
http://www.ritarpower.com
We think that these stock picks have excellent speculative potential. You may remember our last free report, The Top Swine Flu Vaccine Stocks under $20.
The three recommendations we passed on to you were up 30%, 16.05% and 3.64% in less than one week.
But I have a confession to make. I saved my favorite stock pick for readers of our premium service, Hot Stock Confidential.
This company provides products for the military, law enforcement, and security markets. Its battery and power systems division just bagged over $1.5 million in new orders for lithium ion batteries and components. Its stock trades for just $1.67. I think this one could rack up gains of 50 cents to 75 cents per share over the next three months!
But, while we love to provide you with free stock research, we have a fiduciory obligations to members.
The stocks we select for our members tend to be cheaper.. and often trade at smaller volumes. They’re a bit more volatile, too.
But you know what that means: These stocks could easily soar 40-50% in a day… or more… on any bit of positive news!
For an example, look no further than Wednesday, when HSC members saw their position in Seattle Genetics Inc. (NASDAQ:SGEN) soar to $12.50 for quick gains of 23%. Or today, when last week’s HSC swine flu pick Cel-Sci (AMEX:CVM) suddenly went through the roof:
Look at this chart:
Hot Stock Confidential members took just shy of 70% gains on CEL-SCI Corporation (AMEX:CVM)… in 8 days.
Even if they bought at the outer maximum of our recommended buy range, “up to $0.55″), they were sitting on gains of 30%-plus.
These are the kind of gains you can take straight to the bank!
And our Members do. Just a few weeks ago, we received this message from one of our HSC friends:
*** “Thanks for TPI. I took my profit at 20% gain which paid my credit card bill this month. Thanks!” HSC Member S.M., 08/14/2009
Or how about this one…
*** “You guys rock. I’ve made $115k in stocks so far this year on your picks and this off a measly military pay… ” HSC Member S.Z., 07/31/2009
Or this…
*** “I have only been a member for a couple of weeks now but you need to know, I am thoroughly impressed! I’ve been tracking the performance of your ‘picks’ before I make the leap of faith to buy and I am confident with your research and track record. I also love the fact that you are on top of the market and let us know when it is time to consider selling. You are exactly what I have been looking for and I am more than pleased to have my quarterly subscription renewed automatically.” HSC Member V.W., 08/25/2009
Of course, there’s a bit more risk involved… and a little more commitment on our side: We’re ready to blast out a sell alert at any time of the trading day, so you can lock in the maximum gain on any given HSC pick.
So far this year, we’ve taken double-digit profits on an amazing 49 recommendations!
We’ve made it easy as pie for you to become a Hot Stock Confidential member.
So for our Top Alternative Energy Pick, simply follow this link: You’ll have your hands on our recommendation within minutes!
Next Article: TFN eNews 08/27/2009: Top Alternative Energy Stocks
3 Responses to “TFN Special Report: The Top Alternative Energy Stocks Under $6”
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September 1st, 2009 at 3:40 pm
Have you ever done a bit on AAER located in Canada-North Americas only manufacturer of wind turbines?
November 4th, 2009 at 8:45 am
I appepear to be excited about the penny stock issue, I do have a question though, do I need a broker to complete any transactions or do you provide this service ? if so what is the least amount that I can transfer to an account to be able to buy.
Thanks
November 4th, 2009 at 12:16 pm
We do not provide asset management services… only well-researched, actionable information.