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The Winds Of Change

The Winds Of Change

The Texas Public Utility Commission and Electric Reliability Council of Texas approved the new power transmission line project worth almost $5 billion to build out the wind grid in Texas. On that news the wind play stocks are showing good strength today. The contracts won’t be awarded for about six months, but the stocks are gaining on the news.

The big winner with this news is Quanta Services Inc. (NYSE: PWR) the stock closed at $33.33 +2.12. They have about a 70% market share when it comes to the transmission lines of wind power. There are other plays that come out of this like Composite Technology Corp. (CPTCQ.OB). Which is another company that deals with the cables that are needed for wind power. Welwind Energy Int’l.They are mainly dealing a lot in China(great way to play globally) and have just been approved on fifteen different regulation guidelines.

On the other front, oil is down again today and is looking toward going further down to a “normal” level. I won’t expect it to go below $100, but it coming down form their all time high of $146. The price of $4 per gallon looks to be the point where people will stop driving.

Wind power as well as other alternative energy stocks are the way to go to hedge against the price of oil. I myself stay away from the oil plays since it’s too volatile to really know where to get in. How I play the game with oil is to invest in the refineries. When oil gets too high, I buy into the refiners. As the price of oil comes down, the price of the refiners go up.

For me, I’ll mainly stick with the alternative energy stocks as the way to go when fossil fuel stocks get out of control. I’m a “green” type of guy anyway.

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