Hilary Kramer's Picks

NBR Transcripts-June 11, 2008

"Street Critique"-Hilary Kramer, Chief Market Strategist at Greentech Research

PAUL KANGAS: Returns on alternative energy stocks have been mediocre to poor in recent months but tonight's "Street Critique" guest says that just makes them more attractive. She's Hilary Kramer, chief market strategist at Greentech Research and author of "Ahead of the Curve." Hilary, great to see you again.

HILARY KRAMER, CHIEF MARKET STRATEGIST, GREENTECH RESEARCH: Thank you, Paul, very nice to be here.

KANGAS: You're a market strategist. So before we get to your stock picks, let's talk about this market. Is the ugliness going to continue?

KRAMER: In the short term, we are going to see more down days like we have Friday and a day like today. Again the problem is that there's fear and uncertainty in the market. It's not just in terms of individual investors, but institutional leaders fear across Wall Street. There's fear as well. Are prices of oil going to go up? Is there going to be increased unemployment and what's the value of my house or my commercial property? So all of these are contributing to the market going down but eventually the market always goes back up.

KANGAS: All right. Well let's get to your selections tonight. Shares of alternative energy companies especially the solar stocks have been very volatile. Why do you like this sector?

KRAMER: I look for growth. Growth is what drives stock prices upwards so alternative energy is in very strong demand right now. There's a lot of regulatory winds that will eventually make it a better situation and cheaper for companies to utilize alternative energy techniques.

KANGAS: Let's get to some of your specific favorites. What's your first choice and its ticker symbol?

KRAMER: Enernoc and its symbol is ENOC. This is a company in the $13 range that has been as high as $50. Enernoc serves the utility industry and helps them conserve energy. It's called demand response and what they do to an operations center is they control the amount of electricity that's distributed. It's a great company to prevent blackouts and brownouts.

KANGAS: The stock's had quite a tumble hasn't it, so you think it's attractive at this level.

KRAMER: Yes, absolutely. As a matter of fact, I was buying Enernoc. I've been buying Enernoc and I can see Enernoc going back into the mid 20s.

KANGAS: OK, your next choice.

KRAMER: SunPower Corporation, SPWR. This is a solar power company that's both midstream and downstream, meaning that they do everything from put together solar panels to install them. SunPower is very well positioned because the utilities are starting on these projects to build very, very large solar projects, solar thermal is what they call it. And SunPower is positioned to get those contracts. The stock is off, what, almost 50 percent from its high at the end of December.

KANGAS: Quickly, one more here.

KRAMER: MEMC Electronics, the ticker is wafer, WFR. This is a poly silicon maker. This is a company that went from being a semiconductor play to being a solar play.

KANGAS: And we have time for an exchange trade fund that you like.

KRAMER: Anyone who wants to diversify their risk, who wants to be careful the PBW, it's Powershares Wilderhill, but the ticker symbol is PBW. This had SunPower in its (INAUDIBLE) for solar, Sun Tech and you can't go wrong. It's been beaten down. It's a well managed ETF.

KANGAS: All right, do you Hilary own any of these stocks individually?

KRAMER: Yes. I own Enernoc, Sun Power and MEMC. I don't own PBW because I don't do EFTs, but the other three companies I own.

KANGAS: Great to see you again Hilary. Thanks for being with us. KRAMER: Thank you, Paul.

KANGAS: My guest Hilary Kramer of Greentech Research.