Tuesday, September 13, 2011

The Novelty of Alternative Energy

Earlier this year Crystal Equity Research published indices of sorts…lists really…of alternative energy developers and producers.  Named for popular rock bands, the lists were intended to give followers of Crystal Equity Research and the Small Cap Strategist a glimpse at which companies we think are relevant in the alternative energy and conservation world. 

The Beach Boys Index is composed of companies exploiting the power of the sun through photosynthesis.  Here investors can find all the biofuel and ethanol companies.  There are some waste-to-energy developers as well.  Less obvious is the group of alternative chemical producers.

The name Earth, Wind and Fire Index says it all for a list of wind, geothermal and hydro-electric power developers and generators.  We also include solar concentration applications in this group.

We attempt to capture energy sources tapped from the atom in The Atomics Index.   This group includes nuclear power, solar photovoltaic and hydrolysis technologies.

My personal favorite is The Mothers of Invention Index.  Investors will find companies developing and selling products and solutions that save energy, make our machines and processes work more efficiently and distribute our energy more efficiently.

Updated lists were published earlier this month.  We changed few names, although there appears to have been a decided shrinkage in fortunes for alternative energy developers.  It seems that progress has been slow as credit and equity markets contracted.  Several of the companies appear to have hit road blocks as they attempt to scale their technologies to commercial volume.  For all the work, all the public funding and all the hype, alternative energy remains a novelty in many respects, making our novel index names all the more appropriate.

Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.

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