Monday, October 29, 2007

Green Energy Resources Rallys 12.5%... And Keeps the Gains for a Day!

Our play on wood biomass energy surged 12.5% in today's session. That's a solid gain, and frankly, it was overdue and well deserved.

Of course I'm talking about Green Energy Resources (GRGR.PK). One of two bulletin-board stocks in our portfolio, Green Energy recently scored a contract to supply more than $5 million worth of wood-chip biomass to European energy partners.

This "bio-coal" as some call it can be co-burned in coal-fired plants. This both reduces the carbon emissions and also helps to recycle wood that would otherwise rot in the slag heaps of the world.

The company's main - and lofty - goal is to create a tradable commodity out of wood chips, just as there are spot markets for coal, gold, wheat, et cetera.

Who knows if that will ever happen. But we like Green Energy's guts for moving into the European and (soon) the Chinese markets with gusto.

The really amazing thing is the stock jumped 12.5% today... and closed with the gain intact. As you might have noticed, BB stocks have an annoying tendency to soar during midday trading only to settle back at the opening price by end of session.


Powershares Cleantech Fund Starts Fast for Us...

Our recommended green ETF, the Powershares Cleantech Fund (PZD) also rallied nicely today, gaining about 1.64%. This is a broad, conservative play on cleantech. More about what cleantech is and why it's going to become increasingly important, in an upcoming episode of Green Investments.

Since we recommended this ETF a couple weeks ago, it has rallied about 5% for us... a promising beginning.

Waste Management: Don't Call It a Comeback... Yet

Our green energy and recycling play Waste Management (WMI) has been pilloried by the financial press and the analysts alike. The company flubbed earnings last week thanks largely to a strange tax loophole that rather suddenly closed, choking off some bottom-line income for the company.

But it's been quietly fighting back over the last couple sessions, and ended today up more than 1%.

Long-term, this is an excellent company. That's probably why we have yet to see any downgrades by major houses...


I fully expect at least one analyst downgrade to hit within the next week. And it could hit our shares again. So if you're weak of heart, perhaps best to exit now. As for me, I like this play for the long term.

Good investing,


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