The Obama Administration has proposed a program to limit greenhouse gas emissions. Under a “cap and trade” scenario, companies exceeding the set limits could purchase and emission allowances on the open market. Republican detractors label the proposal a veiled tax on business, and predict job losses and further damage to the economy. The Environmental Defense Fund, however, found 1,200 companies in 12 states that would benefit from a carbon cap program resulting in the creation of approximately 5 million “green” jobs.
The companies cited in the research develop and manufacture technologies that can help fight climate change. Additionally, the study predicted that a carbon cap would create economic opportunity in sectors including agriculture, waste heat recovery, wind energy, and other alternative forms of power production. Two companies that stand out from the list developed by the Environmental Defense Fund, First Solar and Cree Inc., highlight the potential profitability of a carbon cap.
| Sign up now for PowerOptions 14-day free trial |
First Solar (FSLR)
Granted, the Tempe, Arizona-based manufacturer of thin-film solar panels has had a rough 2009 to date, with stock prices falling off 20% in February. Over the past 52 weeks, FSLR’s stock has traded from $85.28 to $317, and was hovering around $150 in mid-April. In general, the solar sector has not produced profits, has lacked leadership, and has not shown the ability to sustain growth.
| See what the stock option experts are doing Sign up now for PowerOptionsApplied 30-day risk free trial |
All of that, however, could change in the event of a carbon cap. First Solar has a solar cell that will produce one watt of clean electricity for .98 cents, with a goal of bringing that down to 65-.75 cents by 2012, in line with traditional costs for energy generated by natural gas and coal. Without question, First Solar is the leading contender in the evolving solar sector.
| Free stock option newsletter » return goal > 2% / month » works in any market |
 |
Cree, Inc. (CREE)
Cree is the number one developer of LED lighting in the United States. The semiconductor company, founded in 1987, is based in Durham, North Carolina. They introduced the first blue LED in 1989. The company has shown strong growth, with revenue of $493 million for fiscal year 2008. Among its products, Cree sells LED down-lights to corporations, campuses, restaurants, and hotels and has a long-term agreement with the Austrian Zumtobel Group for similar sales in Europe.
| Want to protect your portfolio/401K from market downside? yet still benefit from market upside Sign up now for the free Sketch |
While LEDs for general illumination have previously been too expensive and too dim, advances in the technology, coupled with the bulbs’ lack of emissions or of the toxic mercury by-products present in compact fluorescents, signal widespread adoption of LEDs in the future. Since a carbon cap could well include a mandated end to the use of traditional light-bulbs, the future for alternative light manufacturers looks strong. (CREE is currently trading at $26.91 and trending upward.)
| Learn how to profit from winner stocks and protect yourself from loser stocks Download free Trade Simulator now |
Profiles of these companies and the others cited by the Environmental Defense Fund can be found on the group’s website. The findings of the research indicate that far from retarding economic growth, companies on the cutting edge of climate-friendly products and services will see a significant boost from a federal program to cap greenhouse gases.
| Learn to trade like the pros Signup for free Webinars now |
Investing in green has the potential to be very lucrative, but green is also very risky. Stock market investor might consider using stock options to protect their investments with portfolio insurance. A put option can be considered the same as “stock insurance“. A married puts position is a combination of a stock trading position and a put option. A married puts stock options position provides unlimited upside while providing a known and limited maximum risk. Stock options can provide methods for capital preservation while also enabling the generation of monthly income. A covered call investing strategy, for example, enables investors with the capability to generate monthly income.
For more information about how to identify and research great option trades, visit the PowerOptions website. There you will find the data you need to make quick, clear, and informed decisions. You can trade knowing you have found the best investment. Also, PowerOptions will allow you, with a few quick clicks, to quickly and accurately compare trades. PowerOptions’ premium customer support is second to none in the industry. They can be easily contacted when you need them at their toll-free number to answer customer questions. Call them now toll free at 877-992-7971.
PowerOptions provides a free 14-day trial of its service. So join PowerOptions today, and you too can start reaping the benefits of the covered call investment strategy.
PowerOptions’ sister company PowerOptionsApplied provides expert stock option trading recommendations. PowerOptionsApplied specializes in covered calls, naked puts and iron condor stock options strategy recommendations. PowerOptionsApplied provides a 30-day risk free trial of its service.
[tags] Obama Administration, greenhouse gas, cap and trade, Environmental Defense Fund, Tempe, Arizona, solar cell, Durham, North Carolina, LED, CREE, Cree Research Inc., FSLR, First Solar Inc. [/tags]