Investing in Green - Not
By Al Thomas
He says it looks like another Microsoft, Apple or Enron. Whoops! Wrong company. But this is an industry that is about to become a new industry leader and you can be in on the ground floor.
There is always a great story for the company. Management that has all kinds of experience in their field with a variation on an old product that everyone wants, but cannot afford. It could be a product that is wanted and needed but up to now has not been able to be produced. It is a 3-bagger, a whiz bang, a can’t-lose. Yes, and pigs can fly.
I have one immediate reservation – if it is that good why is he offering it to me? It be his company is one of the underwriters of the stock and they now want to reduce their inventory. Stocks are looked on as inventory by brokerage companies.
Recently crude oil skyrocketed to 147 and as of this writing is below $40 per barrel. Our president-to-be has promised billions for solar and wind. T. Boone Pickens energy plan has probably been deep-sixed. Oil is again “too cheap” to bother with alternative energy production. Whenever you want to know about anything always follow the money.
There will be conversation, analysis and promises, but nothing will happen. Wise investors will put their wallets back in their pockets waiting for higher oil prices. How many times has the public been told the world is running out of oil? Then find a new field or a better extraction method. It could happen another time.
If investors won’t invest where is all the money going to come from for all this new green stuff? Come on, you know. Look in your mirror. Our new president is going to build it – with your money. Has the government ever done anything of this magnitude right? Can anyone remember it? Free enterprise has always done better and for less money. If let alone without hindering regulations they will build it when it is needed and wanted and then they will come.
If it was not for massive regulations there would be plenty of cheap oil continuing to flow today. Clean coal technology is a fact in Europe. France generates most of its electricity from nuclear without a single accident and no problem with spent fuel. Too many of our “honest politicians” are kept bribed (oops, not supposed to say that as I can’t prove it) by special interest groups that wish to prevent true progress. Because of the great scam of global warming politicians have gotten on board.
Politicians recognize they must agree with global warming nonsense if they are going to get reelected. This is causing “green” companies to proliferate. Most will fail and their stock will become worthless. For those who wish to take a risk with a small amount of money that might be worth something several years hence should consider it ‘throw-away money’. Remember those original Apple and Microsoft investors who have become millionaires.If an investor gets very lucky he must have several items going for him. First he must have enough money to make a real difference should the new venture become successful. Certainly a 100 share amount is not going to make any difference. Many of these new ventures do come out with penny stocks and 99% of them are losers.
The investor must have the time. To become worthwhile in his portfolio may take years. And Mr....Investor must have the patience not to sell when he has 1,000, 2000 or more percent profit.
Keep in mind just because it is green and has a great story does not mean it will be successful or profitable either for the company or the investor.
Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2006 All rights reserved.
Copyright 2008 Albert W. Thomas All rights reserved. Author of "IF IT DOESN'T GO UP, DON'T BUY IT!" Comments to info@mutualfundmagic.com