The Road to Job Creation is Paved with Green Small-Cap Stocks

On Thursday I stated that job creation will be one catalyst that will bring renewable energy infrastructure back into the spotlight in 2010.  This job creation is going to come from innovative, small-companies just like it has in the past – and that means small-cap stocks like Chinese wind turbine manufacturer A-Power Energy Generation Systems (Nasdaq: APWR).  I featured this company in yesterday’s article.

Don’t be fooled by this company’s name, renewable energy is a global industry and even small foreign companies like A-Power are creating jobs for Americans.  A-Power’s new plant in the U.S will employ over 1,000 workers, not to mention those who will be hired to engineer and build the factory, and those who will eventually install and service turbines on U.S. soil.

With the official rate of unemployment at 10.2% and the broader U-6 rate at 17.5%, President Obama is focused on real job creation going into 2010.  But the old rules from the last three decades of a consumer driven economy don’t apply now – we are in an economy of slow growth that will only recover when value is actually created, not just consumed.

And several industries that have been reliable job creators – the auto, financial, and residential construction industries to name just a few – are unlikely to grow at a rate that will absorb the hundreds of thousands of unemployed…

Options Expiration Day Trading Ideas

I had mentioned previously that the markets would likely pull back this week in preparation for expiration today. In pre-market trading that’s exactly what they are doing! The /ES is down big time over night and headed for more losses. On the daily chart you can see that the next major support isn’t until the [...]

Huge Opportunity in Chinese Wind Turbine Manufacturer

 Today I’m going to tell you about the opportunity in small-cap companies that produce power – and specifically one Chinese wind turbine manufacturer that has seen its stock soar 182% already this year.   I know that there is a huge opportunity here for investors who want to establish a position in a company that is growing market share in this exciting industry.

In fact, I’ve recently put together a special report on three companies that will benefit from a renewed focus on alternative energy including wind, solar, and landfill methane.  You can read my Special Report: Alternative Energy Investing: 3 Top Stocks Set for Profits when you sign up for a no risk trial to SmallCapInvestor PRO. 

Renewable energy infrastructure is coming back into the spotlight 2010 for a few important reasons:

1) Job creation that the economy desperately needs

2) Reduction of pollution required to combat global warming

3) Need for independent, home grown sources of energy

All of these will require a range of energy producing solutions.   Tomorrow I’ll write about job creation – today it’s all about wind power.

Watch For The Falling Knife!

Well, like I said last week – the markets are short term over-bought and due for a minor correction. Note the chart below. Clearly it’s a great day for Members and I as our shorts are picking up in speed.
 

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SPY SPDR S&P 500 Trading Ideas

SPY SPDR S&P 500 TRADING IDEAS – Weird and boring day yesterday right? I mean the markets continue to move sideways to up over the last week. Personally – as many of my coaching students know – I think that grabbing up some puts on the SPY would be a very profitable trade over the [...]

Renewable-Energy Revitalization

As we prepare to jump into the second decade of the 21st Century, investors should be thinking about what the future of our economy will look like, and what companies will help to shape it.  This requires forward thinking, especially when we consider the rapid pace of government intervention in business over the last year.  Several sectors of our economy – the financial and auto industry included – have survived thanks to Uncle Sam.

There is another sector that has the backing of the government, but it’s not a bailout.  The sector is renewable energy infrastructure, and it is critical to the future health of our country.  Electricity has been delivered by brute force over outdated transmission lines for the past century.  However, in the not so distant future, a smart grid that can adjust power output and rates charged based on supply and demand will become a reality.

The rollout of a smart grid will make renewable energy sources much more viable.  Currently, energy from sources such as wind and solar is not economical to store and transport.  But that’s where the smart grid comes in, and I believe in the coming years companies that build it will be great investments – similar to those that built the railroads, highways, telephone lines, and internet infrastructure in previous decades…

Protected: Member’s Only Trading Video

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Watch The Bounce On The XLE

Great weekend of analysis and reading up on commodity trends. I really think that the dollar’s fall is going to slow (not stop) which will send the XLE and other commodity ETF’s into sideways trading. For now though, watch the bounce on the XLE for the first signal.
 

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Beautify Your Portfolio With This Small-Cap

The other day I was looking at vitamin stocks that are benefiting from consumer (and investor) demand for healthy living products.  Trends in this segment of consumer stocks are showing that even in a high unemployment environment, people are still making sure that their well-being is a priority.

Regardless of what this morning’s University of Michigan Consumer Survey says – preliminary numbers for November show that consumer sentiment dropped to 66 from October’s reading of 70.6 – it seems consumers are willing to spend money to be well, both inside and out…

Healthy Small-Caps

Strange as it may seem, it’s been documented and published in the North Carolina Medical Journal that death rates decline and healthy living habits increase when the economy is rough.  The numbers show that as unemployment rates increase by 1%, death rates decrease by around 0.5%.  And its not because people are sitting on the couch out of harms way, its because they are actually living a healthier lifestyle – they are getting exercise, smoking less, eating better – doing all the things that we’d expect when everyone has a job.

So if you and your friends don’t have a job you should go for a run, eat some fish, relax – take a nap and appreciate that you will enjoy a longer life of not working.

Of course the research has its skeptics – like everything – but I’m not moderating a debate today (if you are interested, you can read more about the evidence in Fortune Magazine by clicking HERE).

I’m looking to find profitable investment opportunities to capitalize on the research.  And today that means looking at healthy living stocks.

Beat Wall Street at the Investment Game

Here’s what I do for SmallCapInvestor PRO subscribers – I look for overlooked companies we can still buy at reasonable valuations.  I’ve been bullish on small-caps, China, and agriculture for some time. So I start by scanning the universe of stocks that fit my particular criteria, and then dig further into the most compelling stocks in the group.  I look at quarterly and annual reports, review cash flow models, and determine the likely catalysts that will fuel a company’s future growth. 

After deciding which stocks look good, I decide what I’m willing to pay.  Then buy up shares when the window of opportunity is open.  The next step is to sit back and let Wall Street (and your neighbor) ‘discover’ these unknown stocks, and allow their buying to propel the share prices higher.

China Green Agriculture (AMEX: CGA) is one such example.  I first recommended this fertilizer stock in June of this year in my Special Report Going for Growth – 3 Top Chinese Stocks to Buy Now. This report is available to SmallCapInvestor PRO members.

China Green Agriculture develops and distributes high yielding, natural organic fertilizers in China – a market that is facing shrinking arable land, a growing population, and ongoing consumer food safety concerns.  The company has government support, and is expanding capacity and margins as it increases production of highly profitable concentrated fertilizers.    

As the company’s CEO recently said, “Our goal is to continue to introduce new high margin products to the market quickly, providing one of the most assorted product mixes of compound fertilizers available in China.”  This company is keeping it simple – speed to market, high margins, and a selection of products.  Everyone wins – consumers, investors, and the environment…

Commodities Trading On Expiration Week

Commodities trading during expiration week and be very tricky. Recently commodities have resumed their rally as Gold futures (/GC) hit new highs yesterday as demand for this precious metal continues. Oil (/CL) and Natural Gas (/NG) futures have traded in a tight range over the past few weeks with no real direction holding for long. [...]