State of the Union Address – A Financial Perspective
President Bush a tree hugger? Well not exactly, but he is expected to talk about alternative energy in his State of the Union address. According to media reports, President Bush will talk about alternatives to oil such as Ethanol and Hydrogen. With the already high oil prices expected to soar even higher due to the current geopolitical climate (Iran), this might be the perfect time to start taking action to lessen our dependence on oil.
Ethanol
Ethanol is getting a lot of hype lately as the alternative fuel of choice. Big time VCs like Vinod Khosla and Microsoft Chairman Bill Gates have made investments in Ethanol and are big supporters. Almost, all the cars today have capability to run 10% ethanol and manufacturers are building E85 cars that will have a mixture of 85% ethanol and 15% gas. Brazil is the champion of Ethanol use. Ethanol stocks are already surging based on Bush’s mention of ethanol recently.
1. Pacific Ethanol Inc. (Nasdaq: PEIX) – The only pure play ethanol company up about 20% today. Currently, building an ethanol plant in Madero, California. Has plans to build a total of five plants. Currently, there are no ethanol production facilities in California. Great thing is that, Californians may be voting this November on a state proposition requiring that all new cars sold in California be flex-fuel ready. If this happens then there is no stopping this stock. PEIX has been on my recommendation list for a while now.
2. Archer Daniels Midland Company (NYSE: ADM) – The number 1 producer of Ethanol but still only a small percentage of revenue.
There are a lot articles on this subject lately and I have the links of a few below:
Science Daily Article
CNN Money Article
Nuclear Energy
This is another topic that might be discussed in State of the Union Address. With the high natural gas prices, Nuclear energy is making a comeback and Nuclear energy stocks are also worth looking into.
1. Usec Inc. (NYSE: USU) – Uranium Enrichment play.
2. Cameco Corporation (NYSE: CCJ) – Cameco Corporation engages in the exploration, development, mining, refining, and conversion of uranium worldwide.
3. General Electric Corp. (NYSE: GE) – Someone’s gotta make these nuclear reactors.
Check out this article for more on Nuclear Energy stocks:
http://moneycentral.msn.com/content/P116569.asp