Profit From the Shift to Green
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Recently, Cabot Market Letter Editor Michael Cintolo told you: "We are in a very, very powerful bull market for stocks and the best leading stocks are lifting off now. And I want you to profit from it!"
And to get you started, we're offering the rest of the year FREE if you subscribe to Cabot Market Letter by the end of the month. Hurry, today is your last chance to take advantage of this special offer.
Before I get into the investing portion of this Cabot Wealth Advisory, I want to wish you a very happy Halloween! We've been gearing up for weeks here in the Halloween capital of the world, Salem, Massachusetts. The town is packed with revelers from all over the country and tonight is sure to bring lots of bewitching fun. I hope you have a fun and safe holiday!
This week has brought several news items on the Green front ...
Earlier this week, Fisker revealed its plans to convert a defunct General Motors plant in Delaware into a facility to build plug-in hybrid electric cars. GM closed the plant as part of its post-bankruptcy restructuring and Fisker's plan will be the first major redevelopment of a piece of the old automaker.
Fisker, based in California, touts itself as "A Green American premium sports car company with a mission to create a range of beautiful environmentally friendly cars that make environmental sense without compromise."
The company received a $528 million loan from the Department of Energy in September to speed up work on a $48,000 hybrid car known as "Project Nina" and another hybrid, called the Karma, which will retail for $89,000. Fisker has stated that one of its goals is to bring the U.S. back to the forefront of the car industry and taking over the Delaware plant will be a good step in that direction.
You can't invest in Fisker, as the company is privately held, but there are lots of other Green stocks related to the auto industry that satisfy our requirements for investment.
The U.S. Congress has been intensifying its debate on a bill that would help to curtail greenhouse gas emissions. According to one of the bill's sponsors, Barbara Boxer, a Democratic Senator from California, the bill would allow Americans to have "home-grown energy rather than foreign oil" for mere pennies a day, in addition to cleaner air and economic benefits from new sources of power.
The bill strives to reduce air pollution and global warming by creating a limited marketplace for emissions permits and by subsidizing and financing for research encouraging business and industry to switch to wind and solar power (and other Green technologies) from carbon fuels.
While the bill does have some critics, others say that it will help create jobs while improving our environment. Already, $80 billion in the economic stimulus package has been distributed to Green energy programs.
In fact, my third piece of Green news relates directly to stimulus spending. On Tuesday, President Barak Obama was in Florida to announce a $3.4 billion investment in a new energy grid that will be better able to support the development of solar power, wind power and other Green electricity sources.
During his speech at the solar power plant in Arcadia, Florida, the largest of its kind in the U.S., Obama stressed the need for more funding to continue Green projects like the new power grid.
In his speech, he said, "We're on the cusp of this new energy future. In fact, a lot of it is already taking place." Now, to find out how you can take advantage of it ...
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5 Stocks Wall Street Visionaries are Buying Now
Only one sector has the same potential that the Internet did in the 1990s ... and it's taking off right now. Smart investors are already taking positions ... don't miss this opportunity to profit from the next big thing.
Cabot Green Investor Editor Brendan Coffey has just released his newest Special Report, "5 Stocks Wall Street Visionaries are Buying Now," to help you start profiting from the enormous opportunities in the Green sector today!
Maxwell Technologies (MXWL) is one stock benefiting from the switch to more efficient power grids that use Green energy sources and the switch to hybrid and electric cars. The stock was first recommended by Cabot Green Investor Editor Brendan Coffey in March and purchased for that publication in May. (Brendan got in at 10 and the stock is now around 18, giving subscribers a cool 80% gain ... but Brendan believes there's more to come.)
Maxwell Technologies makes ultracapacitors that rapidly store and release electric energy. Maxwell focuses its efforts on the renewable energy industry, primarily applications that work in tandem with wind turbines, automobiles and other forms of transportation.
This is what Brendan wrote when he first recommended the stock:
"The main market for its ultracaps is wind. Because wind speed varies, turbines have trouble maintaining a steady voltage flow. The ultracapacitor stores and discharges energy to complement the turbine's speed and helps send out a more level electrical flow. Maxwell's systems are also used to adjust the speed and angle of the turbine blades according to the weather.
"Since starting to sell the product for wind in 2004, Maxwell has sold over two million units, but almost all to one customer--a German turbine company called InterCon. Recently however, Maxwell purchased a license to the method InterCon had patented so it can sell the ultracaps to other customers. Companies in the U.S. and China in particular have since started using Maxwell's licensed offering.
"An equally exciting application is the use of ultracapacitors in transportation. Maxwell powers 200 municipal buses in New York, Chicago and Long Beach, California, with groupings of 500 to 700 ultracapacitors that are used to capture energy from braking and then redistribute it to accelerate the bus. The end result is that buses have 90% fewer emissions and are 25% more fuel-efficient because the ultracapacitor accelerates the bus from zero to 30 miles per hour, not the engines. ... The obvious next market for ultracaps is automobiles, where the sheer scale of the car market could make Maxwell a significant revenue generator."
And as noted above, Brendan still thinks this stock has big things ahead. This is what he wrote about it recently:
"Maxwell Technologies (MXWL) shares retreated back to support at 17.50 in recent sessions, but volume indicates it's nothing more than a little pullback. The company will announce earnings after the market close on November 3. Expectations are for a net loss of three cents a share, but we expect that even if the company doesn't beat that, the outlook should generate enthusiasm. Technically, the bullish story remains intact, so if you don't have any, these levels are still a good place to buy."
It's not too late to take advantage of the shift to Green ... and MXWL looks like a good place to start.
Take our quiz to find out whether Cabot Green Investor is the right Cabot newsletter for you: http://www.cabot.net/Subcontent/Which-Publication.aspx
In case you didn't get a chance to read all the issues of Cabot Wealth Advisory this week and want to catch up on any investing and stock tips you might have missed, I have links below to each issue.
Cabot Wealth Advisory 10/26/09 - Al Capone and Barack Obama
On Monday, Timothy Lutts wrote about the economics of legalizing marijuana. His column generated a lot of insightful comments on our Web site, which you can read (and add your own) by clicking on the link below. Tim also discussed a famous stock you should avoid. Featured stocks: Amazon.com (AMZN) and Coca-Cola (KO).
Cabot Wealth Advisory 10/29/09 - How to Profit From Health Care Reform
On Thursday, J. Royden Ward discussed why his investment models are currently favoring health care companies and how you can profit from this trend. He wrote about two stocks in that sector that he likes right now. Featured stocks: HMS Holdings (HMSY) and Teva Pharmaceutical (TEVA).
Until next time,
Editor of Cabot Wealth Advisory
Editor's Note: The stock market recently had its best quarter since 1998--with the Dow and the S&P 500 both surging 15%! There's never been a better time to invest. And to get you started, we're bringing you a special anniversary offer for Cabot Market Letter, which has been helping investors profit since 1970. Order by the end of October and get the rest of the year free! Hurry, today is your last chance to take advantage of this special offer. Click below to get started today.