Today's Trading

Investing in the Renewable Energy Revitalization

SMALLCAP MARKETPLACE
Ian Wyatt | Nov 23, 2009 4:48pm EST
Rating: 3 out of 4 stars
Often renewable energy products are a non-profitable segment of a larger company, or are owned by a small company that has yet to achieve profitability.

In these cases, I often pass on the investment, but if I like the company I'll continue to watch for signs that it has broken out of the development stage.  Timing the investment properly can mean the difference between making, or loosing, a lot of money.

This brings me to the topic of today's issue. A reader wrote in about an exciting company that just reported its first profitable quarter.  However, when I looked closer, the company's operation is actually funded by a subsidiary in an entirely different business.  This is a case where it really pays to do your homework: investors who jumped into this stock at its recent high are now down 50% in a period of weeks.

That's not to say the stock won't go higher – it very well may.  But like I said, timing is everything, and this company makes for a good example of how to do your homework.  Since the company is interesting and may be a future pick, I'll share with you what I found...

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