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Thursday, November 09, 2006

New Energy


I am moving to Zecco.com check it.....

So Dems take the house......will energy change? stick to the fundamentals (ie the company makes money) and you will be money making......

PEIX or Pacific Ethanol may go up, but the company is so extremely overvalued, buying the stock is a pure play on momentum. The company is worth less than a dollar a share.

One thing for sure is that ethanol producers use corn and soybeans, which both parties heavily subsidize. I do not want any of the fuel in the future grown, but fuel from recycled products can be useful. Like methanol of waste treatment plants like WMI incorporates. Waste Management is a boring stock though in so far as the price may not change 5% in the next year.

Other opportunities with democrats in congress include Fuel Cell Energy (FCEL). I believe the future of hydrogen as a fuel is so far out that one has to be very realistic in earnings to correctly value the stock. So far FCEL can eek out earnings but looses quite a bit. It may continue to loose (as much as I want the stock to kill the market, I am not naïve)

ENER or energy conversion devices has one of the better chances to prosper. The make money and do not rely on one product. They have battery technology and fuel cell technology. They also have solar panel shingles which were feature on the H&G channel show “I Want That.” The best alternative energy play I see is with battery makers. No matter what for of energy takes the lead, small things will need batteries.

Solar makers and Wind generators will have an uphill battle if just one more nuclear plant is built. Distributed energy may become more important as the power requirements exceed the grids capacity. So small power makers and even powerline service companies may do well. We all need power.

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