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I Want To Invest In Solar

July 25, 2008 | Filed in: Investing | 3 comments

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There’s big money in Solar energy.  Huge money.  Just think about it.  The world is moving towards alternative forms of energy and right now the most accepted alternate form is solar.  It’s relatively cheap and the technology has come a long way.  The only downside is the amount of “acreage” that solar consumes in order to produce enough power to match an existing power plant.  I don’t know how much more, but I’m sure it’s a lot.

With that being said I’m highly interested in investing in Solar Power.  I just don’t know how.  There’s a lot of solar companies out there and they’re not all likely to be around in 5 years when the industry has matured a bit.  Of course you have your “lower-risk” money making stocks such as that of First Solar (FSLR) but it comes with a hefty price tag: $264.09 as of the close of markets on July 24th.  That gives them a P/E ratio of 105.5!  Doesn’t sound like such a good deal, does it?  One little slip up in the Solar power industry and that stock could theoretically tank quickly.  Keep in mind this is supposed to be one of the “safer plays.”

So why do I want to invest in something that sounds so absolutely voilatile?  Simple.  For two reasons.

1. I like to invest in things I use and believe in.  I am a fan of green energy and likewise solar.  I hope it succeeds and I hope that we can begin to use more of it over the next several years.
2. I recognize the potential.  With greater risk comes the possibility of greater reward.  Investing in the “right” solar company could make me much more wealthy and put me that much closer to my financial goals.

I came across an interesting article at stockpickr.com while researching solar today.  It lists 5 stocks that could (keyword being could) have huge gains.  I don’t know much about any of them with the exception of First Solar.  Here’s the list:

1. Trina Solar (TSL)
2. First Solar (FSLR)
3. Canadian Solar (CSIQ)
4. Yingli Green Energy (YGE)
5. ReneSola (SOL)

Here’s the link to the article outlining the stocks as well as the reasoning behind why the author thinks they could soar.  Like I said before I really don’t know what to think myself.  I want to get involved in Solar investing.  I just need to learn more about it so I don’t make a stupid mistake.

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Tags: Green Investing, Investing, Solar Energy

3 Responses to “I Want To Invest In Solar”

1. 

   solar fan Says:

   
   

   CSIQ is the best of the lot. Excellent management, good execution, lots of contracts, expanding out of Spain to Other countries such as Greece, Italy, US. UMG which will expand into the US. Brand name recognition in Germany, Spain, China.

   July 25th, 2008 at 8:42 am
2. 

   Tropper Says:

   
   

   Your overall lesson is great. Chose investments that you firmly believe in for the long term. My portfolio is down ever so slightly which I think is a success.
   The key was choosing stocks that I believe in and those that are self sustaining regardless of the markets.
   Tropper
   http://www.dontdiepoor.com

   July 26th, 2008 at 7:46 am

3. I Want To Invest In Solar Says:

   
   

   [...] See original here: I Want To Invest In Solar [...]

   September 21st, 2008 at 11:52 pm

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