H.J. Huneycutt

Green Energy Experts: Why Do They Buy Solars?

I largely agree with you --- solar is sexier in investing circles, in spite of the fact that it's one of the least promising solutions to energy concerns.

I'm not precisely sure why people like solar so much, but here are a few thoughts:

(1) Everyone understands solar power on some basic level. In fact, most of us have owned solar powered calculators and seen solar in action before. Whereas, how many average Joes understand geothermal power?

(2) There are a lot more recognizable pure-play solar companies out there than companies in other cleantech related industries. It's difficult to find pure-play wind providers that are not OTC; but you can find dozens of solar companies. The competing solar manufacturers seem to have an emotional appeal to investors because there's a "who's going to win?" factor and comparability.

(3) Some of the companies operating in the cleantech sphere are basically conglomerates. For instance, ABB's a great company, but they are like the GE of Europe (without the financial junk). It's a good investment, but it's not a fun company to analyze and they have their foot in so many different things, it's difficult to follow them all, so investors don't really understand them as well.

(4) You mention investing in bicycles and mass transit --- you're absolutely right that these are better solutions than supposedly "fuel efficient" cars that don't really solve most of our problems. But the problem is --- how do you invest in bicycles and mass transit? Maybe you know of bicycle manufacturers sold on public markets, but I don't --- and I've looked before. Mass transit is difficult to invest in as well; most providers are publicly-owned. The only way to play it is to buy into manufacturers that make products related to mass transit like railcar manufacturers. But I don't think most people think that far and "finished products" are much sexier than "materials used for the manufacture of ..."


I've become increasingly skeptical of the solar sector, but if I had to pick companies in that sector, I like LDK Solar (LDK) and Evergreen Solar (ESLR) the most. ESLR probably manufacturers the highest quality solar panels and I think they have some of the best minds on the engineering side working for them. Still, I have my doubts about the sector in general.

ABB: Switzerland's Slumbering Giant

I'd second yank's question. I'm not particularly familiar with Hogan, but I wouldn't bash him solely because he worked at GE before.

Most of GE's troubles right now are related to their Capital Services arm and the company's general lack of focus. Not sure that Hogan is to blame for that.