By Harris Roen
Summer is here, and the sun has been shining on alternative energy.
Two investment themes in the changing alternative energy landscape have emerged as potential profit centers for investors. To take advantage of these trends, the Roen Financial Report has added in four new companies to the list of about 250 alternative energy companies that we track for our readers.
Investment Theme #1: The growing domestic Japanese solar market
In the wake of the Fukushima nuclear disaster, Japan has committed to growing renewables as a domestic energy source. According to Mercom Capital Group, Japan has already had a 73% quarter-over-quarter growth rate in solar cell shipments, and a massive 343% year-over-year growth. The two companies below are promising plays in this area.
Kyocera Corp. ADR (KYO)
Kyocera is a Japanese electronics company with a wide range of products, including solar and energy management systems. This profitable company is likely set to benefit from the acceleration in domestic Japanese solar installations.
Sharp Corp. ADR (SHCAY)
Sharp is a large Japanese consumer electronics company that has been in the solar business for over 50 years. Its stock price has been struggling as a result of poor earnings reports, but like Kyocera, Sharp should benefit from growth in domestic Japanese solar.
Investment Theme #2: Alternative Fuel Engines.
Engineers have been developing and building the next generation of engines that decrease U.S. dependency on foreign oil while reducing greenhouse gas emissions. These latest alternative fuel engines are far more efficient and far less polluting. Importantly, they also cut back on transportation costs. The two companies below are key players in this area.
Cummins Inc. (CMI)
Cummins is a large Indiana-based engine manufacturer whose products include energy efficient diesel engines and low emission natural gas engines. It has a reasonable PE, but its stock looks overpriced at these levels.
Power Solutions International (PSIX)
Power Solutions is a “pure play” company that produces power systems that run on alternative fuels such as natural gas, propane biogas and electric, as well as hybrid technologies. Despite the fact that its stock has doubled in price in the last year, Power Solutions shows excellent sales growth and is likely to continue its uptrend from here.
About the author
Harris Roen is Editor of the “ROEN FINANCIAL REPORT” by Swiftwood Press LLC, 82 Church Street, Suite 303, Burlington, VT 05401. © Copyright 2010 Swiftwood Press LLC. All rights reserved; reprinting by permission only. For reprints please contact us at cservice@swiftwood.com.
Disclosure
Individuals involved with the Roen Financial Report and Swiftwood Press LLC do not own or control shares of any companies mentioned in this article, but it is possible that individuals may own or control shares of one or more of the underlying securities contained in the Mutual Funds or Exchange Traded Funds mentioned in this article. Any advice and/or recommendations made in this article are of a general nature and are not to be considered specific investment advice. Individuals should seek advice from their investment professional before making any important financial decisions. See Terms of Use for more information.
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