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Tuesday, August 30, 2005

Real Investing



Hype...I've seen it before, but the recent activity in alternative energy is something the long term investor is best to avoid. If you like to gamble or follow the money, maybe you missed your chance.

Capstone has risen above $5 from $1 a couple of months ago. This company has almost no sales and as soon as sales pick up, I am sure GE will take over. Profits are what I invest in now, not dreams..unfortunately...

Evergreen Solar is another company I am worried about. Sure they have great new products and sales, but I doubt their patents will last until the market for solar energy expands. Their competitors include BP and Siemens....tuff stuff....

Short term, you can look at energy bills and horrific energy troubles to increase stock price....but if you look at the value of their future sales, it is unlikely their market cap justifies the price.

Smartmoney.com has a valuation tool to help you decide...

good luck alternative energy companies.....I can't throw money at short term trades right now....

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