Best alternative energy stocks for 2010

By: ispeculatornew
Date posted: 01.06.2010 (5:00 am) | Write a Comment  (6 Comments)

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I was a bit surprised when I took a look at the best performing ETF’s in 2010, especially when I saw that coal related stocks had done so well. There is so much discussion about the older energy sources such as coal, oil and natural gas that have been moving our economy for decades. Climate change discussions as well as rising commodity prices have helped bring alternative or renewable energy discussions to the front table.

The problem of course is that these new energy sources are often much more expensive and while that may change in the future, it is not clear how much time it will take. It seems like I have been reading about electric or hydrogen cars for over a decade and yet there is no sign of when a gasoline free car will be mass produced.

However, I don’t think anyone could argue that there will be some big winners in the alternative energy field. Just imagine the company that can produce that first battery or solar car?? There will be some big winners in this field, just as there were in the early days of pc’s or of the internet. But finding the right one is the tricky part.

The million dollar question is also how much time it will take to get alternative energy in the driver’s seat. Could coal and oil be at the top of the 2010 best performing stocks? It could happen. In the end, I decided not to use any energy picks in my top 4 picks for 2010 but I do still believe there is money to be made. By far, the biggest alternative energy category is solar energy.

In order to invest in individual names, I think you can go in one of two directions:

-Go for smaller companies that have a homerun possibility but could also go broke. This requires a lot more time to dig into what exactly the company does, etc.

-Pick a larger company:
First Solar inc (FSLR) is by far the biggest, is already profitable and trades at a reasonable 18.5 P/E

Suntech Power Holdings Co. (STP) – an important but very specialised player, lots of revenues but not profitable for now

Yingli Green Energy Holding company (YGE) – fast growing company it is up about 500% since February!

The other way to invest is to buy an ETF that invests in a few different companies, here are a few clean energy ETF’s:

PBW – PowerShares WilderHill Clean Energy
PBD – PowerShares Glbl Clean Enrgy Port
PZD – PowerShares Cleantech Portfolio
ICLN – iShares S&P Global Clean Energy Index Fd
QCLN – First Trust NASDAQ Clean Edge Green

Solar ETF’s:

KWT – Market Vectors Solar Energy
TAN – Claymore/MAC Global Solar Index

Wind ETF’s

FAN – First Trust Global Wind Energy
PWND – PowerShares Global Wind Energy PortfoETF

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  1. Comment by Doctor Stock — January 6, 2010 @ 10:34 pm

    I’m not a big ETF fan, but I do like some of the individual choices.

  2. Pingback by ETF FOOL — January 29, 2010 @ 11:42 pm

    […] Best alternative energy stocks for 2010 (IntelligentSpeculator) […]

  3. Comment by wind4me — February 2, 2010 @ 4:37 pm

    I would have APWR for the China Green Energy play

  4. Comment by IS — February 4, 2010 @ 9:09 am

    @wind4me – why exactly?

  5. Comment by Robby — February 15, 2010 @ 2:43 pm

    It becomes obvious that there is far more to know about it as I expected. In my opinion you have made some good points in your posting.

  6. Comment by James — March 24, 2010 @ 9:12 am

    Just recently March 2010, JP Morgan did a big call on downgrading FSLR / from neutral to underweight, but also other solar company like ENER and ESLR. I don’t think the trend will go up on a short-term.

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