Opportunities in Solar Energy
Trader Scott’s Market Blog
January 13, 2017
Yesterday morning, I left a comment at the post about my keen interest in the solar energy stocks. They were totally beaten down after the Trump election, as he allegedly would only be bullish for conventional energy:
“From the January 4th post here discussing agriculture there were some stocks mentioned – MOS, POT, CF, SOIL, and Dmitrii added IPI to the list. I keep bringing up stocks which have been out of favor for awhile and are showing signs of life. The biotechs in the December 7th blog for example. I did initial purchases of Ag/biotech stocks over the last several weeks, and another group which is very interesting is solar energy, which has been beaten down. Why in the world would anyone want to own solar stocks with a Trump Presidency? Here are some symbols which are interesting to me – TSL (chart), FSLR (chart), SPWR (chart), VSLR (chart) for your due diligence, and there are many more – this is just a start.”
While all of the hoopla about “global warming/climate change/climate whatever” is generally a scam, it is what it is. Carbon taxes, regulations, hysteria, and fraudulent science is here to stay. Green energy is here to stay, and there are certainly some benefits to them. Some of the biggest blowhard globalists have been making big investments in green technologies. Whether these ideas are a net benefit to the world or not, we can’t fight it – the trend is up – just like not attempting to fight the trend in the markets. As you can see, the solar energy stocks as a group have really been beaten down from their highs. For me, that’s a time to start feeling a bit greedy, but having the patience to wait for signs of strength to show up, and they have been. I have started accumulating shares, and this is not a trade, but an investment, similar to my view of agriculture. As you can see here, the solar sector was a bubble in 2007-2008. Now it’s a decade later, and the opposite situation occurred, as they became a hated group. The fundamental backdrop is there for green technology, and my belief is there is an opportunity in solar energy currently. There are a lot of parts of this whole investment class of green you-name-it. Wind power is another part, as is copper. And a huge part of this is about the batteries, as it’s the storage of the energy which is the real big one. Elon Musk gets all of the press, but there is way more to it than that. I’m immersing myself in a lot of this, and will continue to do posts about it. So just like January 2016 when I first did a post about my keen interest in agriculture and my expectations for a bottom in March, I wanted to get this post out. And like with ags last year, there will be follow up posts.
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day.Scott returned to markets over fifteen years ago where he continues as an independent trader.
January 13, 2017 @ 4:17 pm traderscott
I forgot the link for the “blowhard globalists” – here is the link.
January 14, 2017 @ 7:38 am Q
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January 14, 2017 @ 7:33 am Q
Polar Bear With Me on this bro… Yes global warming is at the very least overstated. And as you know re global cooling ‘everything is the opposite.’ Further, DJT appears to be casting a shadow over at least some of the climate change business. So my question is this… if The Maunder Minimum is a truer threat than the polar ice caps melting and us being submerged… Is agriculture or anything to do with the sun a safe bet?!? ;-)
January 14, 2017 @ 9:00 am traderscott
That’s the point Q. If most people are on one side of the boat, “global warming”, thene the great opportunity is on the other side. And global cooling will be generally a big negative for ags’ SUPPLY. It’s just another reason to be bullish on ag pricing over the next 5 years. And what about energy prices for consumption side in general, no matter what the energy source. Anothere reason why I kept repeating 2016 was the secular low for commodities.
January 14, 2017 @ 7:29 pm Q
Good points just thought I’d put it out there ;-)
January 13, 2017 @ 10:45 pm traderscott
Good find again Dmitrii, and here is a link to the company. This thing with green tech is massive Dmitrii, and as you know it needs battery storage to really begin to bring it all together.
January 14, 2017 @ 7:02 pm David V
What about the prospects for natural gas and natural gas fuel cells, seems a logical alternative to major distribution systems.
Solid-oxide fuel cells are about 60 percent efficient. Using the waste heat from this process, GE thinks it can get to 95 percent energy efficiency.
January 14, 2017 @ 8:22 pm traderscott
I have been very bullish on natural gas for awhile, more than crude itself. Crude has never had the competition it faces now. There are alot of moving parts to this green tech/energy complex. You’ve raised another one to look into. I have watched some of these fuel cell stocks, like Plug Power, over the years but never did anything. Natural gas fuel cells will have to compete with biofuels also. There’s also wind power in this, and more. The battery storage thing brings alot of this together, but yes the fuel cells are here now. Home Depot is doing some big installs of fuel cells instead of solar. The PM miners have alot of potential, but there are other just as interesting potential opportunities.