Equities and commodities all fell during the week ending November 14th.  US REITs were particularly hard hit ([[RWR]] -18.5%).  For a complete summary visit this returns page. Sustainable energy also fell sharply with only 10 companies in our indices advancing.

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How epic has this correction been?  The answer is worse than the 1987 programmatic crash (S&P -32%) but not as bad, to date, as the 1973 oil crisis (S&P -48%) or the dot-com bubble (S&P -49%).   For an excellent graphic of these events and the current housing bubble (S&P -45%) visit here. 

But for sustainable energy the correction has been even more severe.   Our graph from the October 7, 2007 S&P 500 peak to now shows the changes to the four sectors we have been tracking since the S&P peak.   At their minimums the four indices were down between 65 - 80%.

I’ve stumbled on an exciting investment idea. I found a company that has no need for financing for the next 2 years, is doubling capacity by 2010 using existing funds and cash flow from its profitable operations, has its capacity contracted for 10 years, has a 30% US federal tax credit for its product for the next 6 years, and is in an industry targeted by the US presidential candidates as very important.  The shares are reasonably valued with a forward PE of 3.25, a PEG Ratio of 0.11, and cash and equivalents equal to about 20% of market cap.

Apparently I’m in the minority thinking this is an attractive opportunity.  LDK Solar Co Ltd’s (LDK) stock went down 5.95% yesterday.

I don’t know whether we are close to the bottom but October has reduced the market value of the sustainable energy sector by about one-third.  

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