Your Questions About Wind And Solar

November 20, 2011 by The Expert
Filed under Wind And Solar Q & A

Oil is skyrocketing, therefore green energy stocks should…?

Oil shot up like mad today, right. So, should green energy stocks (eg: solar, wind, energy cells: comv, eslr, ftek, fcel) go up or down? Why?

The Expert answers:

Oil (and therefore Gas) prices have been very volatile in recent months. They are a mature technology, so there is unlikely to be any ground-breaking innovation in this area.

Green energy stocks on the other hand, as your long list suggests, are in many different technologies and are not fully developed.
Therefore, as Oil and Gas are immediately available, while green energy is still to fulfil its potential, I don’t think that there is the correlation you suggest. Once these new power sources become as plentiful as oil, they would be inversely correlated, as demand for one would depress the price of the other.

Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances. To find and IFA please call 0800 085 3250 or go to http://www.unbiased.co.uk.

Nancy asks…

What are some good “Green” or alternative energy stocks?

I am really interested in investing in Green technology, specifically solar, wind, or hydrogen energy. If you could just give a few names of stocks/companies that would succeed i would greatly appreciate it thanks.

The Expert answers:

BQI

canadian oil sands is where it’s at baby

Chris asks…

Best ETF/stocks to watch for alternative (wind) energy?

The Expert answers:

An ETF which invests exclusively in Wind Power may be a little too specialised, but you may want to consider the Lyxor ETF New Energy, whose top holding at 12.93% is in a Company called Vestas Wind. Over one year the fund has grown by 10.97% and over three years by 122.69%. This theme of the industrialised countries trying to move away from oil-based energy is topical and should remain so in the near future.

Donna asks…

Do you think Clean Energy Stocks will be the stocks of the 21st Century.?

I think companies that provide clean energy like solar, wind and nuclear power, will be some of the best traded stocks of the future. I think they will replace Exxon, Shell and Standard Oil companies this century. It may be a few years down the road, but I think all of us can see this coming.

The Expert answers:

Geothermal is better than all you mentioned. Free energy literally in your back yard

Donald asks…

Is the course of alternative energy stocks influenced by the price of crude oil?

Hi all,

got interested in stock of companies dealing with alternative energy sources. Such would be: wind, water, solar, ethanol, fuel cells etc.

I think the USA is starting to understand that oil will not last forever and that by using it we actually harm our world. I believe that this leads to a rethinking process that will rather soon start pushing the idea of alternative energy sources. Will stocks of such companies suffer every time prices of crude oil falls? Or is the idea of owning such stocks might get more stable?

Thanks
Micron

The Expert answers:

This is a very difficult question to answer. I do have one thought. There is no way ethonol is economical, at least as manufactured in the U S. It requires more energy to make the stuff than than it provides. It is a Bush scheme to make the public believe we are doing something. Of course the government provides a subsidy at taxpayers expense. Good for the farmers however. Might buy fertilizer stocks or Deer.

I did buy stock in a wind turbine company. Hopefully it was a good idea. Only time will tell. VWSYF

Jenny asks…

which alternative energy stocks should I invest in?

I am assuming that green companies will explode over the coming years. However, with the numerous proposals for alternative energy such as wind, solar, hydro, etc., which proposal is the most promising? Furthermore, which companies should I look into?

The Expert answers:

I really think wind is gonna take off.. Solar has a lot of issues
i’m not sure of any wind companies
but what i really do like is natural gas, the US has an estimated 500 Tcf in the ground…. That’s pretty crazy and it’s fairly clean
i heard rumors that Richard Branson is experimenting with using natural gas as a fuel for his virgin planes….

Maria asks…

When are alternative energy stocks going to rise?

Obama seems to be the ultimate alternative energy supporter, so I suppose that alternative energy stocks will rise under his presidency.
The oil price is down a lot right now, and that doesn’t support investments in alternative energy; I also heard that oil companies will fight to death to stop alternative energy companies from taking off. When is going to be the best time to invest in solar, wind and hydrogen?