Investment Idea: Better Battery Technology
The Bulls Are Back in Town
By Nick Hodge
Advanced Battery Technologies Inc. (ABAT.OB)
Arise Technologies Corp. (APV.V)
Amid waning fuel prices and mortgage-induced market turbulence, it seems the world had forgotten about one of its most pressing issues, an impending energy crisis.
But with a good market day last Friday--leading in to a holiday weekend--and fairly decent days on Tuesday and Wednesday, the well-known troubles from before the correction once again began to rear their profitable heads.
For starters, crude oil on the NYMEX quickly climbed to a high of 77.43--less than $1.35 shy of its all-time intraday high, set just over one month ago on August 1.
Immediately, oil market "analysts" began to offer their conjectures on the conjuncture.
One theory was that the threat of terrorist attacks on Westerners with interests in Nigeria was driving prices up. Another cited the escalating violence between Syria and Israel. A third named a predicted drop in U.S. oil and gas reserves coupled with slowed refinery output as the cause. And, finally, the last reason I heard mentioned was an upcoming OPEC meeting in Vienna where they're expected to announce--surprise, surprise--that they will not increase output quotas.
And while all those assertions may have some validity, I would submit that there isn't really any new information there. When is the last time there wasn't a terrorist threat in Nigeria or conflict between Israel and its neighbors? Has there been a U.S. oil and gas supply surplus anytime this year? And I don't recall any recent OPEC output increases either.
Here's my take. The market--pre-housing slump--was pretty hunky-dory. The Dow was breaking records, the S&P was up, and there was hardly a bear to be found. But when the sub-prime troubles hit and the resultant credit woes manifested themselves, everyone's attention was turned.
As market after market began to tumble, institutional investors quickly pulled their funds in an effort to hedge against what they thought would be prolonged market mayhem. But, as it turned out, stocks rebounded more quickly than anyone imagined they would.
So now, with the attention off a depressing downturn, the market is searching for something to focus on. And it didn't take long. How could it?
The energy crisis never went away . . . it was simply ignored for a few weeks. And now, with the focus regained, it's off to the races--especially for green investors.
Because oil prices hovering this high serves only as fuel for the renewables fire. And that's what is happening right now.
Just take a look at the performance of a few alternative and renewable energy plays over the past five days.
Advanced Battery Technologies Inc. (ABAT.OB) has been flying.
And Arise Technologies Corp. (APV.V) has gained over 44% in the last week.
Not to mention very solid performances from stalwarts in the solar sector and other sectors like geothermal, energy efficiency and wind.
The Heat Is On
There was also a slew of other news reported today that assisted in shining a spotlight on green industries.
Here are just a few of the impressive headlines, some of which stemmed from the Asia Pacific Economic Cooperation (APEC) forum being held this week in Sydney:
Business to Push Carbon Pricing at APEC
India's Largest Utility to Add 1,000 MW of Renewable Energy Capacity
Bush Supports APEC Climate Change Pact
Beijing Calls for $265B Investment in Renewable Energy
With all this buzz surrounding the industry, it's no wonder it's soaring higher. And, if you're smart, you can get in now while there are still a few good bargains left over from the recent correction.
It's going to be gangbusters from here on out.
In fact, Green Chip's latest recommendation--issued just today--is already up over 28%.
Make sure you don't miss another day of this action . . . become a member of Green Chip Stocks today. You can take advantage of our special offer by clicking here.
Until next time,
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posted by Victor Lloyd Smith @ 2:55 PM
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