Sunday, July 22, 2007

Green Investments Beating the S&P by 231% - with an 80% Win Rate

Well, it's been awhile since I've updated this blog... There's been a lot going on in the markets - the Dow hitting record highs, etc. - but nothing that's made me want to jump into the markets with a new pick recently.

So let's take a quick look at where we are now - with our current portfolio - and then consider what our next move might be.

Currently, 4 out of 5 positions are profitable, despite the recent roller-coaster ride in the stock markets. Here's the overall picture right now:

BG +19.83%
LDK +70.15%
KB +25.16%
KEP +13.46%
NMR (-13.11%)
PORTFOLIO GAINS TOTAL: 23.64%


We certainly nailed the LDK Solar bottom - a true investing rarity but we'll take it.

Here's what we said:

"This is a trend play all the way, and we're hoping for some fast, dramatic gains in the face of rising oil prices, demand for green stocks and alt energy plays, and LDK's positioning as only one of two current Chinese solar plays trading in the U.S. (with a third on the way)."

The position is up 70% over the past month and a half. Meanwhile the Chinese solar play we rejected in favor of LDK is up 3% over the same time frame (CSUN).

NMR is our one laggard, but it's well above our trailing stop of 25%... Meanwhile, we're indeed beating the S&P by a broad margin: 23.64% versus 7.13% as of closing July 25th.

Indeed, we have managed through fortune and good timing to beat the S&P by 231% so far this year (not including our big options winners) - and it's been a record year for the S&P, too.

Yet in the process we are investing in a clear-air company... a Chinese solar company... two green-oriented Asian banks... the biggest wind-power contractor in mainland China... and perhaps the most important American player in the burgeoning market for ethanol and agri-fuels, Bunge.

Our next round of picks I'm thinking could come from the commodity sector. I've been looking to add another green commodity play to our portfolio to go along with Bunge.

I'll keep you posted.

James

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