"Street Critique"-Hilary Kramer on the Alternative Energy Sector
Wednesday, November 29, 2006PAUL KANGAS: As we continue our look at alternative energy, tonight's street critique guest has some stocks she thinks could power up your portfolio. Joining me, Hilary Kramer, market strategist and personal finance editor at aol.com. Hilary welcome back to NBR.
HILARY KRAMER, PERSONAL FINANCE EDITOR, AOL.COM: Thank you, Paul. It's a pleasure to be here.
KANGAS: In the past, so-called green investment didn't always leave investors in the black. Why do you think the alternative energy sector is booming now?
KRAMER: It's totally different. This is sustainable. Paul, this is about tax cuts, subsidies, regulation. This is a bipartisan issue. Corporations are dedicated and consumers are to the environment and to reducing emissions.
KANGAS: That is certainly in their favor. Let's get right to your stock picks starting out with starting out with Covanta (CVA). There it is.
KRAMER: Yes, Covanta, CVA, one of my absolute favorite companies. Covanta is a (INAUDIBLE) company which means shareholders make a lot of money. It's about waste to energy, taking landfills and turning it into clean energy. This is one of these future companies we're going to see start to pop up and we're going to hear a lot about.
KANGAS: The stock has done well according to the chart. Number two is Evergreen Energy (EEE). Why do you like that issue?
KRAMER: Evergreen is coal to clean gasoline. We're going to hear a lot about that in 2007. Evergreen is at the bottom, bottom of its chart right now. It's a great buying opportunity as people, especially experts in the area start to believe that we can really take coal and go to clean gas.
KANGAS: I think your third choice is an ethanol company and that's VeraSun Energy (VSE). There it is.
KRAMER: Yes. I love VeraSun, VSE. It had a terrific day, up 5 percent today. What makes VeraSun different, different from Pacific Ethanol, different from (INAUDIBLE) is that they have a technology where they're not just doing ethanol, but in the same process, they can do bio- diesel and so we're going to see VeraSun break out and really have some up side on the stock side.
KANGAS: A fourth choice of yours is Suntech Power Holdings (STP).
KRAMER: I love Suntech, STP. This is a Chinese company. It is a solar company and it's certainly the stellar winner out there in the world of solar. We're going to also be hearing a lot more about Suntech.
KANGAS: OK. We have one minute left and time for another choice of yours and that's Tetra Tech (TTEK).
KRAMER: Yes. Tetra Tech, TTEK. This is a water purification play as well as environmental remediation. This is a value play in clean technology and alternative energy. I recommend it for those that don't want to take a risk with stocks such as Evergreen, EEE.
KANGAS: OK, fair enough. Hilary, do you own any of these stocks or have other disclosures to make?
KRAMER: Yes I do. Covanta, CVA as well as VeraSun, VSE.
KANGAS: You own those two issues?
KRAMER: Yes.
KANGAS: I want to thank you very much for joining us once again and we're going to see you next month to review how your past street critique picks have done.
KRAMER: That's right. I can't wait to find out.
KANGAS: My guest Hilary Kramer, personal finance editor at aol.com.
