Energy Stocks

February 2, 2009
By Revy Anandya Azhary

Best Energy Stocks

alternative energy stocks

alternative energy stocks

Personally, I’m much more bullish on natural gas than oil. I feel that the gas is much more valuable as an energy source but has been largely undiscovered compared to oil by the media, and hasn’t seen the same value appreciation that it deserves. So here are some cream of the crop hybrids with a favorable slant toward natural gas!

Chesapeake Energy Corp. (NYSE: CHK):

Chesapeake is the number one independent producer of natural gas, but still has a lot of hedged risk to thwart the volatility factor. It’s the number one driller with 254 rigs and has beaten the market over and over again with its superior hedging strategies. You can bank on the fact that they grew production by a bigger percentage than any other large-cap competitor. There are some huge reserves that CHK has actively pursued, and I think the best is yet to come.

Anadarko Petroleum Corp. (NYSE: APC):

A company trading at just 15.5 times earnings compared to an industry ratio of 23. APC has proven to investors that it can be the best in a high-growth industry.

Helix Energy Solutions Group (NYSE: HLX):

Helix does a lot of oil & gas production in the Gulf of Mexico, and I believe they fly largely under the radar in the energy sector because of their low market cap.

Apache Corp. (NYSE: APA):

Apache has one of the best managed companies in the business, and I see them outperforming the industry in the long run. I feel that APA can fully exploit their North American reserves to profit in a beaten-down market in 2008.

Investing in Solar Energy Stocks

Solar energy is one of the most prominent alternative sources of energy. With the spectacular growth of solar energy, there have been rising expectations, reflecting extremely high valuations of solar stocks. Everyone seems to be catching up for a share of solar companies. Most prominent solar companies which found favor with a large number of investors are:

  • First Solar (FSLR)
  • SunPower Corporation (STP)
  • Suntech Power Holding Ltd. (LTP)
  • JA Solar (JASO)
  • Solar Enertech Corp (SOEN(
  • Nano Solar
  • Miasole
  • China Sunergy (CSUN)
  • LDK Solar (LDK)

• Solarfun (SOLF)

Take the case of First Solar. To many critics, investing in solar stocks is just like investing in high tech stocks towards the end of the last century only to burst. The main reason for this impression is that it is extremely difficult to develop economical and viable solar energy. It is also opined that there are many other high growth companies in which investors can put their incomes

However, all is not gloomy with solar stocks. Who knows some solar stocks may turn out to be gold mines.

Investment in solar companies seems to be very risky, though lucrative. Moreover some companies like GE are spending heavily in solar power though as a fraction of their total investments.

Also read about stock investment


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