Penny Stocks To Buy In Renewable Energy

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With roughly 3 months to go until the end of 2015, the major US stock indices have done very little to get investors excited. In fact, the S&P 500 is down over 3% for

the year.

Small and microcap stocks, as measured by the Russell 2000, have performed a little better – but are still down over 2%

year-to-date.

When a market is relatively flat (say between up 5% and down 5% for the

year), it’s generally considered a stock picker’s market.

That is, savvy stock investors can actually make money by picking certain

stocks rather than relying on index-based or overall market returns.

Of course, this is especially true for penny stocks, which already tend to

move less in unison with major indices

Well, there are thousands of penny stocks to choose from. But, we could narrow the list by focusing on certain

industries that are attractive.

Let’s consider the energy sector. Why energy? Well, we know there are

generally lots of energy stocks which trade under $5. We also know energy is

down this year due to the low price of oil.Just as a reminder, here’s the chart of oil:

The chart above shows the price of West Texas Intermediate Crude oil over the last year. WTIC is the type of oil we generally

use for pricing in America. As you can see, the price of oil plunged heading into

2015.

There was a moderate recovery in the spring and early summer, but oil is once again near the lows. As you can imagine, the plunge in oil has created quite a bit of

disarray in the energy industry.

Several businesses are not worth operating with the price of crude so low.

Moreover, other types of energy have come under investor scrutiny with oil

becoming significantly more affordable.

Despite the headwinds for most energy companies, I still like the renewable

energy industry for finding top notch penny stocks.

First off, despite everything you hear about oil, natural gas, and any other type

of fossil fuel, it can’t be denied that renewable energy is growing like crazy.

Check out this table from the EIA, and you can see how much renewable energy

usage has grown since 2005. It’s especially true for wind and solar power.

But that’s not all…

There are several other reasons to consider renewable energy penny stocks

for investment.

Let’s not forget, oil is still a finite resource. Even if it doesn’t run out

anytime soon, it’s certainly going to get expensive again.

What’s more, companies and governments are starting to see real

costs from the negative impacts of fossil fuel usage.

Pollution, carbon emissions, waste, etc. are really starting to take a financial toll – and that’s going to get attention from all

involved.

And given all the costs associated with fossil fuels, clean and renewable energy is ultimately a cheaper product almost

regardless of how it’s generated.

Finally, there are investment considerations. You see, several

investors no longer want to fund oil-related projects while oil is this cheap. There’s simply no upside to those types

of projects.

As such, even more investment dollars than normal are finding their way into the renewable energy industry. And, it’s just one more reason the industry is going to

thrive moving forward.

Keep in mind, there are a lot of small companies in renewable energy. That

means there should be lots of good small and microcap companies to choose from

in the space.

Do your research, and I guarantee you’ll find some intriguing investment

opportunities.