North Coast Solar Stocks

July 10, 2007

Three ‘Green’ Energy Stocks to Power Your Portfolio

Filed under: SPWR, WFR — Tags: , , — Jason @ 9:10 am

John Hughes and Scott Maragioglio
07/10/07 – 09:10 AM EDT

The “green” movement is gaining momentum lately, and it’s becoming more of a mainstream concept and concern for consumers. For investors like us, social trends, such as the green movement, can be great investment themes to ride as nimble companies cash in on the shift in spending patterns.

The definition of which companies are “green” depends on who you talk to, but we’ll play it safe and talk about companies that are addressing environmental and energy issues. The increased pressure for pollution control and clean-energy technologies is creating a new category of growth companies that are delivering the products for alternative-energy solutions, pollution control and conservation technologies.

As the price of oil moves north of $70 once again, the interest in alternative energy is gaining momentum. Solar energy is one subsector in the alternative-energy group that is gaining upside strength, and there are several names that look either poised to break out or are trending strongly.

Click here for larger image.

The first name in the sector to take a look at is SunPower. SunPower manufactures commercial and residential solar power systems. The company has been able to gain some earnings traction, and the stock is reflecting this strength.

SPWR has rallied sharply since the last pullback, but the stock is trending strongly, and we would look to buy on any pullback toward the $60 area.

MEMC Electronics
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A related play on the solar sector is MEMC Electronics. MEMC manufactures the raw silicon wafers that are used to make photoelectric cells, as well as semiconductors. WFR has traditionally been seen as a semiconductor play, but the strength of the solar sector has given the company a new growth dimension.

MEMC is in a good position to get long at this level. The stock peaked in late April and has been consolidating for the last two months. WFR looks ready to turn up and resolve this consolidation to the upside. Wait for a breakout over the $64 level to confirm a bullish change in the stock, and then look for a resumption of the primary uptrend.

Fuel Tech
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Another interesting green trade is Fuel Tech. Fuel Tech provides clean-air technology for coal-burning utility plants, as well as other industrial combustion processes. As government pressure increases on utilities to lower carbon emissions, we should continue to see strength out of companies that are providing pollution control solutions.

FTEK has a very bullish chart in place. The stock has broken out of a lateral consolidation that has formed over the last six months and is now forming a bullish triangle continuation pattern off of the recent surge higher. This type of continuation pattern suggests to us that the stock is ready to move higher and resume the uptrend.


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