The Top Green Penny Stocks
Its no secret that so many sectors of the market have been topsy-turvy in the past year
. But its no lie to say theres plenty of potential upside on green energy. Alternative energy is one of the best sectors to invest in these days specifically, penny stocks based on alternative energy.
Today, I wanted to talk to you about a few of those green penny stocks that could, very conveniently, boost your portfolio. A couple of them are making big strides in the arena of algae oil
Algae oil is now the most promising source of alternative energy on the planet. But dont just take my word for it the worlds biggest energy player agrees.
ExxonMobil is the Big Oil player thats causing all the fuss. The company has thrown $600 million into a research partnership to study the potential of algae oil. Now, ExxonMobil will team up with human genome researcher Craig Venter in an attempt to make algae oil a more viable fuel source.
There has been so much hype and hope about the potential for algae that this announcement should act as a reality check for everyone, Venter told the Financial Times.
Up until this point, the algae oil industry was rarely mentioned in mainstream media sources. Yet it remains one of our most viable alternatives to conventional fossil fuels.
The argument is simple: Algae are the fastest growing plants in the world. And algae consume more carbon dioxide than any other plants. As they grow, algae produce lipids, or vegetable oil.
The math is greatly skewed in favor of algae. One acre of corn can yield about 28 gallons of oil in one year. In more tropical regions, an acre of palms can yield about 6,700 gallons of oil per year. An acre of algae can yield anywhere between 20,000-100,000 gallons of oil per year.
This tremendous potential exists because of a lightening-fast growth cycle. An algae plant can completely reproduce up to six times per day. And we all know it takes corn all summer to mature.
Of course, ExxonMobils new partnership does not mean we will be filling our tanks with pond scum biodiesel just yet. Developers will still need to tackle genetic engineering and oil extraction issues
But ExxonMobils leap into the algae oil market effectively legitimizes the industry. But as you probably have already guessed, the budding algae oil industry offers very few public companies in which you can invest. However, there are a few compelling names youve probably never heard of
Here are two algae penny plays you might want to watch:
PetroSun Inc. (PINK SHEETS: PSUD): Last month, this diversified energy company signed an agreement with a town in Arizona to develop an algae-to-biofuels wastewater pilot program
Green Star Products Inc. (PINK SHEETS: GSPI): Green Star is involved in the business of environmentally friendly lubricants and fuel additives, as well as algae fuels and other biodiesels. Recently, the company has also announced plans to build electric vehicles.
Several private startups and partnerships are worth watching, too
Weve mentioned Sapphire Energy before. Its scored more than $100 million in private financing including a chunk from Cascade Investment, a holding company owned by Bill Gates.
Then theres Algenol Biofuels. This company has partnered with Dow Chemical on a project that would use algae as a vehicle to harvest CO2 for ethanol.
The ethanol would be sold as fuel, reported The New York Times, But Dows long-term interest is in using it as an ingredient for plastics, replacing natural gas. The process also produces oxygen, which could be used to burn coal in a power plant cleanly, said Paul Woods, chief executive of Algenol, which is based in Bonita Springs, Fla. The exhaust from such a plant would be mostly carbon dioxide, which could be reused to make more algae.
The companys target price is $1 a gallon incredibly cheap compared with corn-based ethanols. A breakthrough like this one could put the U.S. on the road to energy independence at breakneck speeds. Well keep you posted.
Keep in mind, algae oil certainly isnt the only green way to make money out there. There are a few over-the-counter stocks poised to take advantage of technological breakthroughs in energy development, as well as the manufacture of environmentally friendly everyday products.
In fact, theres one product consumed by most Americans on a daily basis. And even though you might think of how its produced as environmentally disgusting, some small-caps and smaller-than-small-caps are going green in making it
This Dirty Industrys Secret Green Penny Play
There are no two ways about it investing in environmentally friendly companies is a powerful trend that will sustain itself for quite some time.
Green stocks like solar panel manufacturers, wind farm builders, and clean fuel developers have seen share prices race ahead of the rest of the market in recent months. Since the beginning of the year, the Wilderhill Clean Energy Index has rallied 9.08% versus a 1.68% loss for the market at large.
Individual companies have fared even better. Just look at Suntech Power Holdings (NYSE: STP) and Helix Wind (OTCBB: HLXW), two green companies that have netted investors 32% and 46% respectively since January.
The allure of green companies isnt relegated to Wall Street, however. Main Street is going green, too.
With the demise of our countrys traditional manufacturing base, growing numbers of now unemployed Americans are looking for manufacturing jobs at green companies. The growth rate of these green jobs has been quite robust. The Associated Press reports the renewable energy sector has added jobs at more than twice the national rate for nearly a decade. Now, we can look forward to even more money flowing into renewable energy projects, thanks to government interest.
That influx of jobs and money has even made its way to Motor City.
Where line workers in Ford, GM, and Chrysler automotive plants once had few options during past recession-induced layoffs, manufacturing jobs with green companies have become a welcome alternative to the unemployment line. Between 1998 and 2007 Michigan saw a 10.7% increase in clean energy jobs a trend thats continued into 2009.
Green companies may be part of the only industry that isnt awash in a sea of red. Thats because today green manufacturing has become a $228 billion dollar industry thats even attracting the eye of behemoths like GE and Wal-Mart.
However, while green companies have investors attention right now, most of them arent as compelling as they could be
The best green investment right now isnt in windmills or solar. In fact, its a business most people wouldnt categorize as green at all. Thats because while traditional green technologies have enormous potential, theyre untested in the business world and for the most part currently unprofitable.
Thats fine if youre willing to wait years for gains to materialize in your portfolio, but thats not an attractive option for investors who were burned by 2008s tumultuous market.
Thats why Im not looking at some experimental new technology. Actually, the industry that interests me the most right now has been around in some form for more than 2,000 years. Its also extremely profitable
Im talking about paper.
And while paper manufacturing may elicit mental images of huge smoke-billowing tractors clear cutting endangered rainforests, thats not necessarily the case. Paper can actually be one of the greener products in your home. In fact, the Sustainable Forestry Initiative calls paper one of the few truly sustainable products on the planet.
Surprisingly, manufacturing by-products provide a renewable source for more than 60% of the energy used to make paper. Couple that with the fact that paper is biodegradable, recyclable, and reusable, and that paper makers are responsible for planting 4 million new trees every day, and paper really emerges as one of the most interesting green products out there.
It also emerges as a compelling investment right now
As a basic material used in practically every household and office in the world, paper is remarkably recession resistant. And that omnipresence also makes for a hugely diversified client base. To be sure, not all paper companies are equally attractive in this economy, but its essential to remember that paper doesnt just include the white sheets in your printer paper companies manufacture products that are used as retail packaging, industrial components, and even building materials. Forget notebooks, these are the paper products you want represented in your investment portfolio right now.
Best,
Greg Guenthner
by: Jonas1
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