To generate investment profit in today's turbulent market environment, it is important to focus on long-term fundamentals and select stocks that are well positioned for long-term growth.
In addition, when one goes "bottom fishing" for stocks that have been beaten down, it is important to focus on stocks with strong fundamentals to avoid picking up "dead fish" that do not recover when the market goes back up.
As the price of oil continues to skyrocket, there are several industries that are well positioned for long-term growth - these include demand response, solar, and wind power.
Demand-response solution providers allow utilities to be able to deal with peak demand in the electrical power grid without building additional expensive peaking power plants that also pollute the environment.
* EnerNOC is currently the market leader in the demand response business. Its shares closed Thursday at $17.82. Last year revenues grew 124 percent, which demonstrated the strong growth potential of this company. My 12-month price target is $23, which means you should start taking profit as the stock goes above $21.
* Comverge is also a leader in the demand response business which in February 2008 executed a new long-term pay-for-performance virtual peaking capacity contract with Southern Maryland Electric Cooperative. Comverge shares closed last week at $13.04. In the last 12 months, it had revenue growth of 77 percent, which is also outstanding. My 12-month price target is $18, which mean profit taking should start above $16.
* MEMC Electronic Materials is a global leader in the manufacture and sale of wafers for solar photovoltaic cells and have been a pioneer in the design and development of wafer technologies over the past four decades. Its shares closed July 3 at $54.96 per share. While its revenue growth was only 21 percent last year, its earnings growth was 47 percent. My 12-month price target is $95, which means profit taking should take place at prices above $85.
* American Superconductors is a leading energy technologies company that serves the wind power and electric power grid transmission industries. Its shares closed last week at $31.98. Revenue for the last year grew at a very healthy clip of 115 percent - and that growth is also expected to continue through 2008. My 12-month price target is $49, which means profit taking should start at prices above $45.
Hilary Kramer runs a green investment fund that owns long positions in the above stocks.
Source : http://www.nypost.com
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