Published:
January 22, 2008
The
correct answer is
(B.) First Solar (FSLR)
On December 31, 2007, shares of
First Solar closed at $267.14 per
share, but a year earlier, the stock
was at a mere $29.84 per share. That
incredible increase represented an
almost +800% rise! But what exactly
was behind this run-up?
Based in Phoenix, First Solar
produces photovoltaic modules that
produce clean, renewable energy.
Many companies in this dynamic
business are growing enterprises
turning out real profits, and FSLR
is leading the pack. Earnings at the
firm have skyrocketed, and the stock
has taken investors along for the
ride.
But the ride might not be over yet.
Currently, solar power accounts for
just 0.1% of the nation's
electricity, and the United States
produces just around 500 megawatts
of solar power each year. But by
2010, that total could easily reach
3,000 megawatts, and this translates
into billions of potential revenues
for companies like First Solar.
So, it's easy to see why these firms have attracted a wave of
buying interest -- and the more than
two dozen companies involved in the
solar power field already have a
combined market capitalization well
in excess of $100 billion.
With all of this in mind, those
looking to cash in on the bright
long-term growth prospects of the
alternative energy space might rush
to buy up any alternative energy
stock. But placing all your eggs in
one basket by picking a single stock
can be a costly endeavor. After all,
if the fortunes of that firm turn,
investors could be seeing red.
Instead, smarter investors will
consider one of the
alternative-energy-centered funds
highlighted in Nathan Slaughter's
latest issue of
The ETF Authority, including
one fund that sports a shining +65%
1-year return! With extensive
holdings and reasonable expense
ratios, these ETFs are diversified
opportunities to participate in one
of the world's most transformative
innovations. To read Nathan's
article on alternative energy funds
and to learn more about
The ETF Authority
newsletter, please
visit this link.
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