Through The Fly's Eyes: Clean Energy

from Theflyonthewall.com









A Year Too Late?

Is Barron's cover story on clean energy a year too late? The Fly began blogging about the merits of investing in clean energy over a year ago--with stellar results.

Sunpower (SPWR) we recommended soon after it was spun off from Cypress Semiconductor (CY) at $28 per share. Today the stock is $68, for a 150% gain.

Fuel Tech (FTEK) was another clean energy idea that the Fly recommended that is also up big, jumping from $12 to $32, a 166% gain.

Is it time to jump in to these stocks? Most likely not. It is time for them to consolidate and suffer through a slowdown. However, the best risk-reward vehicle to play the tech boom in energy is through Applied Materials (AMAT).

Applied Materials is getting the orders to build all the semi-equipment for SunPower and others. Applied's stock has increased to $20.48 from 16.30, a 26% jump since we started blogging about alternative energy stocks. The semi-equipment manufacturer is more diversified and its other businesses are beginning to pick up. Therefore, investors get the upside of the alternative fuel business but some downside protection from Applied's other businesses if alternative energy stocks take a breather.

Be careful of jumping into the pure alternative energy plays now, stay with a conservative play like Applied Materials.