WHY WOULD YOU BUY ENERGY STOCKS?
explain y ENERGY stock are good to buy
WINDMILL FARMS ANSWERS:
Crude oil prices are moving back up so there are companies (especially refiners) that have benefited nicely from its reversal of fortune. The best part of the oil and natural gas business is its predictability. Here's how the story goes: A soaring economy increases demand, which causes prices to surge. Eventually, demand reaches its peak, the market is oversupplied and prices fall. It's classic economics. Right now, according to my models, we are just past the peak of the fall, which makes this a fantastic buying opportunity. Granted it is tough to go against the alternative energy craze, but once the wind and solar profits have all come and gone, the nation's oil and natural gas industry will remain, pumping away.
Linda asks...
WHICH IS A BETTER SECTOR TO WORK INSTEEL OR WIND ENERGY?
WINDMILL FARMS ANSWERS:
I would say wind energy. I work in the steel industry in the uk and every couple of years there seems to be a steel shortage. I am in two minds as to whether our suppliers effectively create the steel shortage by saying there is going to be one or whether china is really buying it all up, but i do know that its a cut throat business and at the moment our company is being rationed as to how much we can buy from our normal supplier. Other suppliers aren't taking on new customers, or their prices are way too high and we are running out of stock! At least you know we'll never run out of wind!
Maria asks...
WHAT "GREEN ENERGY" STOCK SHOULD I INVEST IN?
Or should I at all. I have a feeling that this green ENERGY movement is going to stick. What do you think. And which stock(s) are the way to go for "green"?
WINDMILL FARMS ANSWERS:
I agree with what the 1st responder states. Individual stocks do contain a great deal of risk, especially in emerging markets such as green energy. For every one company that will survive 10 will fall by the wayside. I am not entirely in agreement with investing in an index fund in this area though, at least not at this juncture. If in fact 10 are going to fall by the wayside, then 9 out of 10 of the stocks in the index are going to fail. Not a promising opportunity.
I have to admit that I myself have positions in 3 companies, all outside of the U S. They all however are very expensive relative to their earnings. The least expensive of the 3 is TSL, a small Chinese company manufacturing solar energy solutions. Another is STP, another Chinese solar energy company, much larger and much more expensive. But both are absolute bargains compared to U S based solar companies. The 3rd is Vestas, a Danish company, which is the largest producer of wind turbines in the world. It is somewhat on the expensive side currently however.
I have studied The Andersons ANDE as a possible investment. The company among other things produces alcohol. It also has a large rail car fleet that it leases. One might consider railroads as the greenest of the green. Other railroad possibilities are NSC, UNP, BNI, and CSX. At least these companies pay dividends, have reasonable earnings, are more or less the only game in town in their respective regions, and are 7 time more fuel efficient than trucks and 50 times more fuel efficient than airplanes. Also they are the only form of transportation that currently is clean. They can run on electricity which can be generated by other clean sources. Unfortunately, I think others have caught on because they are all up significantly this year.
Ken asks...
OIL IS SKYROCKETING, THEREFORE GREEN ENERGY STOCKS SHOULD?
Oil shot up like mad today, right. So, should green ENERGYSTOCKS (eg: solar, WIND, ENERGY cells: comv, eslr, ftek, fcel) go up or down? Why?
WINDMILL FARMS 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.
John asks...
IS IT SAFE TO INVEST IN STOCKS; WHAT ARE THE KEY BENEFITS OF STOCKS?
Is it safe to invest in STOCKS
WINDMILL FARMS ANSWERS:
Invest in A-Power Energy Generation System (APWR) stock is a great place to invest because the stock it blow 200 day average so in the short term it will increase really fast when it in the market earning again.in short term you will earn 1-2 time the amount that you put in which in 1-2 year and of you put in a long-term you return it will be 10-15 time which it 5-10 years. The company is the biggest owner of wind turbine in china and the company is expending to other area such as U.S, Europe, and many more countries. The companies is expend their wind turbine to many different area the stock average return a year is about 20% but with right now the we are on the way to getting out of recession the average return is about 50%-120% a year.
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