Kusick on A-Power and Solar, Wind Investing

Wednesday, Nov 12, 2008

As the prices of crude oil and other energy commodities made their historic rise in recent years, alternative energy became an increasingly attractive area for investors looking for big gains. However, the slowing global economy and collapsing oil prices resulted in a massive pullback in expectations for the near-term potential of the formerly red-hot sector, along with huge declines in share prices.

While it makes sense that companies working with solar, wind, and geothermal energy generation became more attractive as crude oil prices skyrocketed above $100 a barrel during the summer, the fall in crude prices doesn't negate the need for energy sources that provide independence from traditional energy commodity prices. Governments across the globe remain interested in the long-term benefits of investing in alternative energy as a means to protect against a future surge in prices, as well as a means to protect the environment for future generations.

In managing the Breakout Stocks model portfolio, one of our favorite names in the alternative energy space is a small Chinese company, A-Power Energy Generation Systems (APWR Quote - Cramer on APWR - Stock Picks).