Are Green Technologies Worth Consideration for Your Portfolio?
Are Green Technologies Worth Consideration for Your Portfolio? Yes, But Why Can’t We All Speak the Same Language.
Not since Jimmy Carter was President has there been so much talk about fossil fuel conservation, solutions to water and air pollution, cutting-edge alternative and renewable energy and other environmentally-sound technologies.
Rapid developments in science, as well as changing public opinion towards all things Clean and Green have changed much since the Carter Administration. What was once considered liberal philosophy has now invaded the mainstream.
In many ways, we can all thank – or not — former Vice-President and Nobel Prize winner Al Gore for stirring up this renewed interest in environmentally-sound technologies.
During 2008 we saw Wall Street blaze with talk of Green Stocks. New web sites and e-zines emerged. Those who were already operational in this enviro-friendly arena were rejuvenated. In addition, these were huge topics of the US 2008 Federal and State election campaigns. And since the Democrats swept the White House and US Congress, the battle rages on with no end in sight.
Some DC media correspondents predict the Green Sector to be one of the hottest topics after the great Healthcare Reform debates turns to legislation or dies on the vine. Likewise, many Wall Street analysts have weighed in with their predictions on what’s hot and what’s not in the Green Stocks arena. And while there are many diverse opinions on the subject, one thing that we, journalists and analysts alike, can all agree on is that there is a serious need for the Green Stock companies to take a step back and explain their technologies to those of us without PhDs in science.
The Need for Plain English in Green Stock Discussions:
Aside from the fact that many of these companies have yet to actually realize significant profit margins, there is also the issue of investor understanding of these stocks.
Regardless of how much buzz these Green Stocks receive, widespread confusion remains in the investment community. This confusion results from the fact that this field is in many ways a new frontier and these companies are immersed in many converging and complex technologies.
While brokers have recommend investments in this market sector, it is our opinion that no one has done a very good job of explaining these technologies in non-scientific terms. We are not laying blame on the brokers or investment advisors — because they receive their briefings on Green Stocks and Securities directly from the companies themselves.
The Green Stock companies have yet to understand that they must shoulder the burden for lack of clear communication in their investor awareness efforts. Being too close to their inventions and processes often renders them unable to explain their technologies in language everyone can grasp. And when they engage professionals to try to explain their concepts, they often refuse to allow any changes to the rhetoric. This is a constant battle within Investor Relations community, but it is an unfortunate one. It translates – in any language – to a breakdown of communications going out to day traders and professionals in the investment community.
Green Stock Sub-Sector Primer:
In the coming months HWS will be reporting on companies in this sector and will do its level best to explain the intricacies of these technologies in layman’s terms.
In the meantime, here’s a quick reference primer to some of the types of companies grabbing attention and worthy of further consideration.
* Alternative Fuels – Those companies involved with the production of ethanol, Biodiesel,
Biomass and high BTU energy pellets produced from combinations of low sulphur coal,
plant mash or human or animal waste.
* Nanotechnology – Those companies who have harnessed the most complicated of all
sciences – physics. These companies are finding ways to produce rechargeable batteries, solar energy and other clean energy applications with devices so small that by comparison a watch battery looks like a tire.
* ESCOs – those Energy Management Services Companies with the proven best-of-breed
technologies that can reduce energy consumption, and increase non-renewal energy sustainability. Companies in this market sector are innovators, as well aggregators who buy up blocks of energy from competitive markets and resell them into non-competitive markets, thus making it easier for corporations and health care centers to manage their costs.
* Biotechnology – those innovators, who among other things are finding nontoxic ways to
fight and cure the diseases that impact all of us. Companies in this arena also work in conjunction with those in nanotechnology to create transdermal drug delivery systems that are applied directly to the skin and prevent deadly drug overdose.
We suggest you do your own due diligence and never purchase any security unless you are prepared to lose your entire investment.
