SmallCapInvestor.com

The Road to Job Creation is Paved with Green Small-Cap Stocks

Fri, 20 Nov 09 13:55:00 -0500

On Thursday I stated that job creation will be one catalyst that will bring renewable energy infrastructure back into the spotlight in 2010. This job creation is going to come from innovative, small-companies just like it has in the past – and that means small-cap stocks like Chinese wind turbine manufacturer A-Power Energy Generation Systems (Nasdaq: APWR). I featured this company in yesterday's article.

Don't be fooled by this company's name, renewable energy is a global industry and even small foreign companies like A-Power are creating jobs for Americans. A-Power's new plant in the U.S will employ over 1,000 workers, not to mention those who will be hired to engineer and build the factory, and those who will eventually install and service turbines on U.S. soil.

With the official rate of unemployment at 10.2% and the broader U-6 rate at 17.5%, President Obama is focused on real job creation going into 2010. But the old rules from the last three decades of a consumer driven economy don't apply now – we are in an economy of slow growth that will only recover when value is actually created, not just consumed.

And several industries that have been reliable job creators – the auto, financial, and residential construction industries to name just a few – are unlikely to grow at a rate that will absorb the hundreds of thousands of unemployed...

Huge Opportunity in Chinese Wind Turbine Manufacturer

Thu, 19 Nov 09 16:29:06 -0500

Today I'm going to tell you about the opportunity in small-cap companies that produce power – and specifically one Chinese wind turbine manufacturer that has seen its stock soar 182% already this year. I know that there is a huge opportunity here for investors who want to establish a position in a company that is growing market share in this exciting industry.

In fact, I've recently put together a special report on three companies that will benefit from a renewed focus on alternative energy including wind, solar, and landfill methane. You can read my Special Report: Alternative Energy Investing: 3 Top Stocks Set for Profits when you sign up for a no risk trial to SmallCapInvestor PRO.

Renewable energy infrastructure is coming back into the spotlight 2010 for a few important reasons:

1) Job creation that the economy desperately needs

2) Reduction of pollution required to combat global warming

3) Need for independent, home grown sources of energy

All of these will require a range of energy producing solutions. Tomorrow I'll write about job creation – today it's all about wind power.

Renewable-Energy Revitalization

Wed, 18 Nov 09 00:00:00 -0500

As we prepare to jump into the second decade of the 21st Century, investors should be thinking about what the future of our economy will look like, and what companies will help to shape it. This requires forward thinking, especially when we consider the rapid pace of government intervention in business over the last year. Several sectors of our economy – the financial and auto industry included – have survived thanks to Uncle Sam.

There is another sector that has the backing of the government, but it's not a bailout. The sector is renewable energy infrastructure, and it is critical to the future health of our country. Electricity has been delivered by brute force over outdated transmission lines for the past century. However, in the not so distant future, a smart grid that can adjust power output and rates charged based on supply and demand will become a reality.

The rollout of a smart grid will make renewable energy sources much more viable. Currently, energy from sources such as wind and solar is not economical to store and transport. But that's where the smart grid comes in, and I believe in the coming years companies that build it will be great investments - similar to those that built the railroads, highways, telephone lines, and internet infrastructure in previous decades...

Beautify Your Portfolio With This Small-Cap

Fri, 13 Nov 09 00:00:00 -0500

The other day I was looking at vitamin stocks that are benefiting from consumer (and investor) demand for healthy living products. Trends in this segment of consumer stocks are showing that even in a high unemployment environment, people are still making sure that their well-being is a priority.

Regardless of what this morning’s University of Michigan Consumer Survey says – preliminary numbers for November show that consumer sentiment dropped to 66 from October’s reading of 70.6 - it seems consumers are willing to spend money to be well, both inside and out...

Healthy Small-Caps

Thu, 12 Nov 09 17:00:00 -0500

Strange as it may seem, it’s been documented and published in the North Carolina Medical Journal that death rates decline and healthy living habits increase when the economy is rough. The numbers show that as unemployment rates increase by 1%, death rates decrease by around 0.5%. And its not because people are sitting on the couch out of harms way, its because they are actually living a healthier lifestyle – they are getting exercise, smoking less, eating better – doing all the things that we’d expect when everyone has a job.

So if you and your friends don’t have a job you should go for a run, eat some fish, relax - take a nap and appreciate that you will enjoy a longer life of not working.

Of course the research has its skeptics - like everything - but I’m not moderating a debate today (if you are interested, you can read more about the evidence in Fortune Magazine by clicking HERE).

I’m looking to find profitable investment opportunities to capitalize on the research. And today that means looking at healthy living stocks.

Beat Wall Street at the Investment Game

Thu, 12 Nov 09 00:00:00 -0500

Here’s what I do for SmallCapInvestor PRO subscribers - I look for overlooked companies we can still buy at reasonable valuations. I’ve been bullish on small-caps, China, and agriculture for some time. So I start by scanning the universe of stocks that fit my particular criteria, and then dig further into the most compelling stocks in the group. I look at quarterly and annual reports, review cash flow models, and determine the likely catalysts that will fuel a company’s future growth.

After deciding which stocks look good, I decide what I’m willing to pay. Then buy up shares when the window of opportunity is open. The next step is to sit back and let Wall Street (and your neighbor) ‘discover’ these unknown stocks, and allow their buying to propel the share prices higher.

China Green Agriculture (AMEX: CGA) is one such example. I first recommended this fertilizer stock in June of this year in my Special Report Going for Growth – 3 Top Chinese Stocks to Buy Now. This report is available to SmallCapInvestor PRO members.

China Green Agriculture develops and distributes high yielding, natural organic fertilizers in China – a market that is facing shrinking arable land, a growing population, and ongoing consumer food safety concerns. The company has government support, and is expanding capacity and margins as it increases production of highly profitable concentrated fertilizers.

As the company’s CEO recently said, “Our goal is to continue to introduce new high margin products to the market quickly, providing one of the most assorted product mixes of compound fertilizers available in China.” This company is keeping it simple – speed to market, high margins, and a selection of products. Everyone wins - consumers, investors, and the environment...

Unemployment Tops 10%

Mon, 09 Nov 09 16:40:00 -0500

Not only is unemployment rising, but people are staying unemployed longer.

We see that in the fact that U-6 rate is climbing faster then the official U-3 rate. People are losing jobs, and those that have lost them can't find another one. Some are giving up hope for an immediate solution.

That's why President Obama has extended federal jobless benefits by 20 weeks -- people need help. The U.S. government's Trade Adjustment Assistance Program is getting swamped with applications. This program pays benefits to people whose jobs have been shipped overseas or wiped out due to foreign competition.

Ironically, we will probably see the official rate of unemployment, the U-3 rise before unemployment improves. At some point, the U-6'ers will pick up the search again. That will move them back into the U-3 tally. Then hopefully they will get a job, and the official rate will decline.

So what does this mean for small-cap stocks? A couple things…

Unemployment Hits 10.2%

Fri, 06 Nov 09 13:15:00 -0500

he controversy over the Three Gorges Dam project surrounds the forced relocation of an estimated 1.2 to 2 million people and the negative environmental impacts of massive flooding. In fact, half of the project's total cost was spent relocating people whose homes are now underwater due to the higher river level. Throughout the cruise, we saw many towns that were recently built to provide housing for those who were relocated.

It is important to remember that the communist Chinese government is still all-controlling. The government puts the interest of the people as a whole ahead of the interests of the individual. This is in stark contrast to the U.S. where individual rights are paramount and sometimes taken for granted. The fact that the Chinese government relocated more than a million people to create a hydroelectric dam shouldn't be surprising, but in many other countries this simply wouldn't be able to happen..

How China Transforms the U.S. Stock Market

Thu, 05 Nov 09 14:40:00 -0500

Our second full day in Jiuzhaigou was spent in a small Tibetan village. After adjusting to the bed we slept in late, a welcome rest that was aided by our long hike and sampling a few local beers. We spent the morning with my brother Reid on an exciting two-hour horse ride through the hills surrounding the village.

Reid and I sported our 10 RMB cowboy hats, each complete with an imprint of a bull. The hats seemed appropriate given the activity and my impression of the Chinese economy. We took a number of great photos of the village below and the beautiful terrain while on the ride. Our horses were led by Tibetan women wearing Nike shoes and clothes, another reminder of the effects of globalization and reach of Western culture...