Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Trading Natural Gas As The Season Changes - 16th Sep 19
Cameco Crash, Uranium Sector Won’t Catch a break - 16th Sep 19
These Indicators Point to an Early 2020 Economic Downturn - 16th Sep 19
Gold When Global Insanity Prevails - 16th Sep 19
Stock Market Looking Toppy - 16th Sep 19
Is the Stocks Bull Market Nearing an End? - 16th Sep 19
US Stock Market Indexes Continue to Rally Within A Defined Range - 16th Sep 19
What If Gold Is NOT In A New Bull Market? - 16th Sep 19
A History Lesson For Pundits Who Don’t Believe Stocks Are Overvalued - 16th Sep 19
The Disconnect Between Millennials and Real Estate - 16th Sep 19
Tech Giants Will Crash in the Next Stock Market Downturn - 15th Sep 19
Will Draghi’s Swan Song Revive the Eurozone? And Gold? - 15th Sep 19
The Race to Depreciate Fiat Currencies Is Accelerating - 15th Sep 19
Can Crypto casino beat Hybrid casino - 15th Sep 19
British Pound GBP vs Brexit Chaos Timeline - 14th Sep 19
Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - 14th Sep 19
War Gaming the US-China Trade War - 14th Sep 19
Buying a Budgie, Parakeet for the First Time from a Pet Shop - Jollyes UK - 14th Sep 19
Crude Oil Price Setting Up For A Downside Price Rotation - 13th Sep 19
A “Looming” Recession Is a Gold Golden Opportunity - 13th Sep 19
Is 2019 Similar to 2007? What Does It Mean For Gold? - 13th Sep 19
How Did the Philippines Establish Itself as a World Leader in Call Centre Outsourcing? - 13th Sep 19
UK General Election Forecast 2019 - Betting Market Odds - 13th Sep 19
Energy Sector Reaches Key Low Point – Start Looking For The Next Move - 13th Sep 19
Weakening Shale Productivity "VERY Bullish" For Oil Prices - 13th Sep 19
Stock Market Dow to 38,000 by 2022 - 13th Sep 19 - readtheticker
Gold under NIRP? | Negative Interest Rates vs Bullion - 12th Sep 19
Land Rover Discovery Sport Brake Pads and Discs's Replace, Dealer Check and Cost - 12th Sep 19
Stock Market Crash Black Swan Event Set Up Sept 12th? - 12th Sep 19
Increased Pension Liabilities During the Coming Stock Market Crash - 12th Sep 19
Gold at Support: the Upcoming Move - 12th Sep 19
Precious Metals, US Dollar, Stocks – How It All Relates – Part II - 12th Sep 19
Boris Johnson's "Do or Die, Dead in a Ditch" Brexit Strategy - 11th Sep 19
Precious Metals, US Dollar: How It All Relates – Part I - 11th Sep 19
Bank of England’s Carney Delivers Dollar Shocker at Jackson Hole meeting - 11th Sep 19
Gold and Silver Wounded Animals, Indeed - 11th Sep 19
Boris Johnson a Crippled Prime Minister - 11th Sep 19
Gold Significant Correction Has Started - 11th Sep 19
Reasons To Follow Experienced Traders In Automated Trading - 11th Sep 19
Silver's Sharp Reaction Back - 11th Sep 19
2020 Will Be the Most Volatile Market Year in History - 11th Sep 19
Westminister BrExit Extreme Chaos Puts Britain into a Pre-Civil War State - 10th Sep 19
Gold to Correct as Stocks Rally - 10th Sep 19
Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - 10th Sep 19
Stock Market Sector Rotation Giving Mixed Signals About The Future - 10th Sep 19
The Online Gaming Industry is Going Up - 10th Sep 19
The Unknown Tech Stock Transforming The Internet - 10th Sep 19
More Wall Street Propaganda - 10th Sep 19
Stock Market Price Structure Still Suggests We Are Within Volatile Rotation - 9th Sep 19
Stock Market Still Treading Water - 9th Sep 19
Buying Pullbacks in Silver & Gold - 9th Sep 19
Government Spending - The High Price of a "Free Lunch" - 9th Sep 19
Don't Worry About a Recession - 9th Sep 19
Large Drop in Stocks, Big Rally in Gold and Silver - 9th Sep 19

Market Oracle FREE Newsletter

The No1 Tech Stock for 2019

Energy Sector Investment Opportunities

Companies / Energy Resources Nov 23, 2008 - 05:14 PM GMT

By: Investment_U

Companies

Best Financial Markets Analysis ArticleDavid Fessler writes: This week, we're continuing our investigation of Obama's “New Energy for America” plan. This comprehensive document details the President-elect's roadmap for energy independence. [You can read the plan in its entirety here .]

Under the Obama administration, I expect there to be many profitable energy investment opportunities under what will likely be a very “green-friendly” four- or possibly eight-year timeframe. Many of the opportunities will arise from his focus on energy independence and corresponding energy infrastructure.


Reducing energy bills means ultimately reducing demand and controlling its costs. Weaning the country off fossil fuels won't happen overnight. After all, it took us over 100 years to get to where we are.

But Obama recognizes we need to get started now. His plan has several strategies that help reduce our need for fossil fuels while alternative solutions are developed. And we've found three companies that are perfectly positioned to help the United States “bridge” the gap. 

The United States' Energy Investment Opportunities

A quick, cheap and easy strategy to increase efficiency is simply to save energy. And one of the best solutions is to weatherize older homes. While homes built in the last few years are far more efficient than those built even 10 years ago, many older residences are huge energy thieves.

Since 1976, the U.S. Department of Energy's Weatherization Assistance Program (WAP) has provided help to 5.6 million low-income families - enabling them to permanently reduce their energy bills. But help doesn't come in the form of a check, which might be misused. It contracts for weatherization services on the homeowner's residence.

Upgrading or replacing a home's old furnace, sealing leaky heating ducts, fixing or replacing leaky windows and adding insulation reduces the average home's heating bill by anywhere from 20% to 40%, and results in an overall annual savings of $358 at today's energy prices . Replace old appliances and change out incandescent bulbs for florescent ones - and the savings get even more impressive.

Obama plans to expand this program, as nearly 28 million U.S. homes remain eligible for assistance. His goal under the Energy for America plan is to weatherize an additional one million homes every year.

Of course, the largest energy user in the country is - you guessed it - the good old Federal Government, which spent a whopping $14.5 billion on energy use in fiscal 2008.

Obama plans to lead by example: All new Fed buildings will have a 40% increase in energy-efficiency within five years. The new administration wants all federal buildings carbon-neutral by 2025 and he ultimately expects to achieve a 15% overall reduction in government energy use in just six years (2015).

Weatherize your Portfolio: 3 Energy Investment Opportunities

When looking for ways to play the energy efficiency/savings angle, the field narrows, but below are three energy investment opportunities . Adversely affected by the general housing downturn, many companies that would be a consideration under Obama's plan are off the table.

There are a few we can consider, however:

  • Apogee Enterprises, Inc. ( Nasdaq: APOG ) designs, services, installs and sells glass walls and window systems that make up the outside skins and entrance areas of large commercial and institutional buildings.

    Through its subsidiaries, it's engaged in the design and development of numerous glass products, services and systems. Apogee's glass will be in high demand for weatherizing the nation's windows.

    Earnings have held up remarkably well, particularly in the face of the housing slowdown. It's had little real effect on the company since its exposed more to the commercial side of the building business. At current levels, the stock has a yield of around 6%.

    CEO Ron Huffer had these forward-looking observations in a recent press release: “We believe that our markets offer significant longer-term opportunities, due to the increasing importance of green building, a sector demanding energy-efficient products that we supply and the overall growth in the use of value-added products in commercial construction projects.”
  • A good blue-chip play that stands to benefit as well is 3M Company ( NYSE: MMM ). 3M is a diversified technology company engaged in industrial products, transportation, and numerous other sectors. Its industrial products division makes hundreds of items for the construction industry like window and door materials, including adhesives, tapes, films and abrasives.
  • And let's not forget General Electric ( NYSE: GE ), perhaps the best, safest energy and infrastructure play in the world. It has exposure to nearly every area of engineering and manufacturing that we use to build and power our country.

    Infrastructure and green energy continue to be focal points as spending in these sectors could jump-start the global economy back to life. GE is better positioned than perhaps any other firm to profit from this spending influx. And at prices of around $13 a share, it's a steal - especially when you consider its nearly 10% dividend yield.

As Obama's New Energy for America plan comes up to speed, investors could see a huge slug of cash - perhaps as much as $1 trillion - being thrown at the energy and infrastructure sectors .

And stakes in the above mentioned companies will make sure you get in on the action.

Good investing,

David Fessler

Today's Investment U Crib Sheet

  • This morning's IU Blackboard talked about how the prices for crude oil are at three-year lows and what that's done to producers. Click the link to visit today's Investment U Blackboard .
  • Warren Buffett's Berkshire Hathaway ( NYSE: BRK.A ) announced today it was adding to its 17% stake in USG Corp ( NYSE: USG ). USG produces building materials for a wide range of applications from remodeling to residential and commercial construction. To see what else he's been buying, check out Investment U Issue #863, Warren Buffet : Why Buying Constellation Energy Group Is A Sweet Deal.
  • There are many different ways to profit from the numerous infrastructure opportunities. In fact, there's one that's going to be far bigger than the rest. To get seven companies that are poised to profit from it, learn more in Investment U Issue #886, Broadband Penetration : 7 Ways to Profit From Our Biggest Infrastructure Need.
  • Another great way to take advantage of these pivotal sectors is through the White Cap Index . Louis Basenese just released the next five companies to be added. And three of them are focused on the clean energy and technology boom.

Article - Energy Investment Opportunities: Why 28 Million Customers Need These Upgrades

by David Fessler, Advisory Panelist, Investment U

http://www.investmentu.com

Copyright © 1999 - 2008 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules