CleanTech Stocks to Get an Obama Bounce?
One of the more interesting speculations circulating right now is that CleanTech should soon get an Obama bounce. The inauguration of Barack Obama today has many excited about the prospect of alternative and renewable energy programs going forward. Triple Pundit offers this on Obama’s plans for green energy:
What’s more, he’s also pushing a new infrastructure stimulus that will have a sizable cleantech portion, including:
- $20 billion in tax cuts for alternative energy including a multiyear extension of the production tax credit for wind, geothermal, hydro power and bioenergy
- $32 billion to modernize the nation’s power transmission grid to support more clean energy
- $16 billion to retrofit some public housing to use less energy
- $6 billion to weatherize modest-income homes
- $2.4 billion for developing carbon capturing technology
The idea of increasing investment in and spending on renewable energy and other clean technologies is one that has many thinking that these types of companies will be likely to come out ahead when the stock market recovers. Even though CleanTech companies are posting losses like other companies, there is thinking that many of them will recover.
Of course, not every company with a focus on alternative energy and green technology will survive this recession. This is why it will be important in coming months to watch for who gets government contracts to help green up the infrastructure, as well as look for companies with solid business models and sound fundamentals. It should be an interesting few years, and if you position yourself now, you could be sitting pretty.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
