Two stocks for smart energy
Today's Financial News - Posted February 17, 2009
Obama’s stimulus may be filled with veiled pork, but smart investors will still be able to make money from it. Many will use “smart meters” to get the job done.
By Andrew Snyder, TodaysFinancialNews.com
Baltimore – (TFN): When I moved into my 109-year-old home, I never imagined it would be so smart. When the farmhouse was built in 1900, it had no plumbing, widespread use of electricity was years away and the thought of an automatic washer and dryer was a notion of science fiction.
Since its foundation was laid, the house has seen three generations of electrical and plumbing innovations. The lead pipes have long been replaced with copper, which have now been replaced with plastic. And the original knob-and-tube wiring meets all of the latest codes. I replaced the last ungrounded circuit over the weekend.
Even with all of the modern upgrades, I never imagined I could connect to the heart of the house’s electrical system with my Web browser. Thanks to my power providers commitment to “smart meters,” I can get an hour-by-hour update of my old home’s electrical usage. It is pretty neat stuff.
I can tell when my wife fires up the drier. I can tell when we go on vacation. And I can easily calculate how much electricity that huge floor sander I rented over the weekend used as I worked to abrade away a century’s worth of foot traffic on the home’s original tongue-and-groove pine flooring.
Knowledge is power
My smart meter has helped me monitor and change the way I use electricity. The monthly bill is no longer a mystery. I can now clearly see I use about $3 worth of juice on weekdays and over $4 of electricity on a project-filled Saturday.
With its many advantages, it is no wonder so many environmentally minded legislators and policy makers are demanding widespread implementation of smart meters. If used to their fullest, the meters will help save huge amounts of natural resources each year and significantly curtail power-source emissions.
While I am not happy about most of the “porkulous” spending in the Obama administration’s stimulus package, I am glad to know at least a sliver of the incredible spending will go towards smart meters. The nation’s addiction to energy will weaken, even if just slightly, and just as importantly, savvy investors will make a pile of cash.
There are many company’s working in the realm of smart meters, ranging in size to mega-conglomerates like General Electric (NYSE:GE) and International Business Machines (NYSE:IBM) to smaller companies like Center Point Energy (NYSE:CPE) and Itron (NASDAQ:ITRI) to the smallest of them all, Ambient Corp (OTC BB:ABTG).
The two most intriguing companies on that list are the two smallest.
Itron, with its $2 billion market cap, will appeal to mid-cap investors looking for a growth investment. The company is a leader in smart meter development and implementation.
Electrifying your portfolio
Even in the grips of a global financial mess, shares of the company have managed to climb. Since their November lows, shares of Itron have climbed by nearly 60%. Thanks to the current smart-energy push, they have plenty of room left to soar.
Shares were trading for over $105 in August. I expect them to be back in that range by the same month this year. Right now, you can get your shares for $54, a 6% discount on the day.
For fans of speculative micro-caps, Itron may be too big. But certainly, Ambient and its $25 million market cap will not be. Its shares are currently selling for $0.098, yet over 2.5 million shares of the company have traded today. The company designs and sells smart grid products that allow its customers to measure and analyze their electrical consumption in a slightly different, IP-based manner.
Its products attack the markets from a different, rather un-tested direction, but if the tiny company can find success, its early investors will be rewarded handsomely. Do not risk your retirement on this company, but it is worth some of your investment dollars dog-eared for speculative investments.
The equities market is stuck in a rut and is spinning its wheels making the problem even worse. But even as the recession continues to eliminate wealth, there are plenty of investments worth looking at.
Thanks to the latest round of stimulus spending, “smart meter” technology stands to give the portfolios of savvy investors a strong jolt of energy.
Next Article: The prickly pear cactus jelly threat… and TFN’s 2009 prediction for the euro
Be the first to leave a reply.
Your comments are welcome
Follow TFN via RSS or Twitter |
 |
 |
 |
Advertisement
Latest Headlines
- The Big Picture for Sinobiopharma, Inc. (SNBP)
- Beazer Homes USA, Inc. (BZH) and Hovnanian Enterprises, Inc. (HOV) up despite horrid housing news
- The FDA catalyst: 2010 moves in MannKind (MNKD), Roche Holding (RHHBY), Acorda Therapeutics (ACOR) show it still works!
- Steepest drop since Feb. 2009: Here we go again!
- Is the silver run over? Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Alto Group (ALTO), Hecla Mining (HL), Endeavour Silver (EXK) close down