What should investors in the Alternative Energy sector be doing, Pearce Hammond, Director of Institutional Research, Simmons & Co. International has some ideas;

Mr. Hammond: “I think my overall advice to investors right now with this sector is number one, be cautious. This is a sec­tor that’s driven a lot on momentum and press releases, and lot of stories, and that can move the stocks every now and then, but you have to really look at the fundamentals. And so my second piece of advice is just understand companies that have a better competitive position than the others. So for example, First Solar (FSLR) has a very good competitive position in the solar business. It’s a hyper-com­petitive sector; it’s a very volatile sector. I think you’re going to have a lot less risk by going into the sector via that stock than going in with a high-cost producer. And the equity is going to be moving very much like a weather vain as to how people perceive the solar sector, but cautious in not getting carried away. There are going to be some big winners in this sector over the next five and 10 years, and maybe some of the companies aren’t even public yet, but they will be big winners. And so kind of a constant diligence or keeping up with what’s going on in the sector is helpful too. These things change a lot. “

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This entry was posted on Wednesday, September 23rd, 2009 at 8:23 am and is filed under Natural Resources Stocks. You can follow any responses to this entry through the RSS 2.0 feed.