Going Green: How to Invest in Alternative Energy

July 10, 2008

On the issue of solar energy, Germany already has a huge head start and is buying up all the necessary materials that are available to harness solar energy right now. That makes it very hard to establish solar power plants in the U.S, since we'll have to wait in line due to the incredible order backlog. And strangely enough, the federal government has put all new solar energy projects on public land on hold for two years. The Bureau of Land Management says the moratorium is needed to determine how the projects could affect plants and wildlife. In other words, before we can try to help the environment, we have to prove that we're not hurting the environment! This means that much of the 119 million acres of land in the West that's owned by Uncle Sam and is ideal for solar energy is now off limits.

Besides, even if some company jumps through all the hoops and solar panels are all across the desert lighting up Las Vegas, Phoenix and San Diego, guess what? Solar would only make up of 2% of the total U.S. electrical output. You heard right– 2%.

The same is true for wind power, where the electricity is often generated far from populated areas and access to the utility grid is difficult. The farther electricity is transported, the more of it you lose. Another problem with wind power is that it often generates electricity during non-peak demand, so elaborate batteries are needed to store the electricity for peak-demand periods. Even in the best case, it's estimated that wind energy would provide less than 3% of total U.S. electricity output.

The Natural Gas Solution

As you can see, the future of natural gas for electricity generation is very bright. Even though my Blue Chip Growth subscribers and I are profiting from the big push into alternative energy (especially solar), realistically it will be decades before wind and solar contribute significantly to electricity generation in the U.S. Instead, natural gas is poised to boom for many years to come.

That's why in my Blue Chip Growth Buy List, I currently recommend three natural gas plays. One of my favorites is Noble Energy (NBL). In fact, this is a good time to load up on shares of NBL because the company is set to report earnings in just three weeks. Last quarter, NBL absolutely flattened Wall Street's estimates. The consensus of analysts was for earnings of $1.71 a share. Instead, Noble earned $2.05 a share. During this decade, the stock is already up over 750%!

I'm currently finishing up my next issue of Blue Chip Growth, and it will be sent to subscribers on Monday. You can sign up now for a one-year subscription to Blue Chip for just $149. That's less than $3 a week for a service that's beaten the market five-fold for over a decade! This also includes my money-back guarantee. If you don't like Blue Chip, you can cancel at anytime within the first six months and get all of your money back. That way, there's no risk to you.

I'm going to add at least one exciting new stock this month in the energy sector. I can't give out the name unless you're a subscriber, but I can tell you that this company is famous for recently finding a massive new oil field off the Gulf Coast. This new field is the largest discovery in nearly 40 years. Estimates suggest it contains 15 billion barrels of untapped crude oil. Join us at Blue Chip Growth today to find out the name of this company!

That's all for this week. Next week marks the beginning of second-quarter earnings season, so be prepared for a lot of action!

Sincerely,

Louis Navellier

P.S. The Hulbert Financial Digest just confirmed that my Blue Chip Growth Buy List beat the S&P 500 by 10 points in the first half of this year. If our performance keeps up, this will be the ninth time in the last 11 years that we've beaten the market. I hope you take advantage of this opportunity and join us today!