Alternative Energy Penny Stocks
Fertile Field For Growth!

Alternative energy penny stocks appeal for a number of reasons. This is a relatively new, emerging sector. Economic situations are creating some real bargains through neglect. For those who love volatility, there is no lack of it.

Being penny stocks, less than a dollar, or pound, or appropriate currency, larger percentages of a company's publicly traded stock can be acquired for the same dollar investment compared with companies with more pricey stocks.

Here I want to provide an overview of as many of these stocks as possible over a number of exchanges.

To be useful it needs to be up to date with the latest changes. To achieve this I have added a section at the end of the page with the latest breaking news from a number of significant exchanges.

Candlestick stock chart idea - iStockPhoto

Many countries have set themselves targets for renewables and alternative energy as a proportion of their national grid supply. Not only do countries need to start using these resources. They have to keep increasing their use of them.

Yes, legislation can be altered. However the sea-change has begun. So much money, research and verbal commitment has been made to exploring and providing alternative resources, it will be almost impossible to reverse.

Anybody who has been watching either news items or studying exchanges will have seen the alternative energy sector lose value in the current economic climate.

There are also those headline-grabbing companies like Solyndra that received huge federal backing and then collapsed. "It's nothing personal, it's just business." Or "S**t happens". Businesses will fail while others succeed. There is no guarantee for any business out there. It is the same for any investor.

Investing in alternative energy penny stocks is no different from the broad range of sectors. Values rise and fall. Depending on what your investment strategy is, will determine the criteria your chosen stocks have to fit.

Buy And Hold

Those buying and holding for long term gain want a strong company. And what better gains could there be than finding a lowly valued company that went big exploding its share value through the roof?

Warren Buffett has entered the alternative energy market through his subsidaries. He himself says that the energy markets will deliver the next billionaires.

His investment strategy is buy and hold, based 85% on the strategies of his mentor Benjamin Graham as outlined in Graham's book The Intelligent Investor, Rev. Ed in the Kindle edition.

Buffett reads thousands of corporate reports yearly to understand the fundamentals of a company, including reserves, cashflows, directors etc to have a whole picture.

Only if he is convinced it is a sound company with a great future and he understands the industry will he put money behind it.

His track record is plain for all to see in the stock value and history of Berkshire Hathaway Holdings.

Momentum Trading

Of course for those wishing to trade, stock price variability is the key. Value is created, or money made, picking low valued stocks to buy, then selling near the highs.

In variability one wants both significant changes in value to occur along with this occurring over short time frames. The more rapid the variations the more money can be made. Or lost!

Volatility in the alternative energy sector is quite large. In alternative energy penny stocks it generally is, if anything, more so. A trader's heaven.

Traders talk about charts, trends and patterns. One of the most successful and well-known traders of today, George Soros, trades according to a pain he feels in his back. He seems wired to the markets! That might be a little difficult for others to emulate.

Just as with any other penny stocks in the general market caution needs to be advised. The ease with which these bottom dweller stocks can be manipulated, draws the unscrupulous.

By buying up huge volumes relatively cheaply and then releasing apparent tips that will create demand, they can win off naive investors hoping to make a quick profit. These smaller investors tend to wind up losers.

Some alternative energy penny stocks may be so because the companies are about to go bust. They may be performing poorly.

Disclaimer On Alternative Energy Penny Stocks

This is not a financial advice column. I do not pretend to be a financial advisor - amateur or professional.

But information in alternative energy penny stocks is useful and interesting. It gives a window on the alternative energy field - new players and those struggling. It is possible to become very educated on new players in the market and those still finding their feet as they go through the research and development phase.

In many ways it is no different to new oil and mineral exploration companies. At least the raw material the alternative energy companies will use is already there and reports should be available on the viability of the areas they are looking to exploit. This may be less detailed than data the company actually has - ongoing raw data is a type of intellectual property and often closely guarded.

New tweaks in technology can arise and blow a seeming sure thing out of the water. Like any business area care and due diligence needs to be exercised.

Regular Updates

By having at least some of this information available, regularly updated through the news section for alternative energy penny stocks at the bottom of this page, and individual sub-sector news items available in the rest of the site's news section you will have at least a good basis to begin with. It will be also possible to check back from time to time to see new relevant changes.

Alternative energy penny stocks may well produce some of the new wealthy investors of the future. Timing and major initiatives seem to be all in favour.



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