Friday, September 05, 2014

The Atomics Adjustment

This recent round of updates to the novel alternative energy indices of Crystal Equity Research is completed (at least for the time being) with the new Atomics Index. The changes should come as no surprise.

Players in the Nuclear Group have remained the same.  This is an industry that requires a considerable amount of knowhow and capital, making entry into the club an awesome undertaking.  Once establish few players leave quickly.  They are in the business until their investment is recovered.

There seems to be little interest in the electrolysis method for creating hydrogen.  There is a fairly high barrier to entry in this field as well.  The need for substantial capital resources is just the beginning.  There remains a fairly steep learning curve in electrolysis.  Yes, schools of engineering have accomplished a great deal in their laboratories.  However, commercial success remains elusive.  Thus the Hydrogen-Electrolysis Group actually lost a member.

There is a veritable revolving door in the Solar Photovoltaic Group.  A few were deleted from the group after going out of business.  However, that does not mean the group has diminished in size.  Six new names were added to the group.  Among them, Chromasun attracted our attention for its new line of advanced high temperature solar panels.  The company is new to our list but has been around for eight years, during which time they have proven their solar cooling and heating systems can reduce electricity bills.  France’s first solar power producer, Solaire Direct, was also added to the group because of the company’s plans to have 545 megawatts of installed power capacity by the end of 2014.

Keep watching The Atomics Index for future updates.  I hope to feature some of these companies in future blog posts as we continue to look for ways that investors can participate in the value being created in alternative energy.

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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