gabby

5 Must Read Articles in Oil and Alternative Energy

Hey thanks to all the comments here. I am not able to comment on solar, I had stopped following, not because i don't value/believe in it, but there is a limit to what I can effectively follow. FWIW, tonight on Fast Money (2/19 -5:20pm ET). Tim Seymour reco'ed Brazil - specifically CZZ as a way to play Castro retiring. The reco has more substance than you would think. Lula has established ties w/Castro, Cuba has a historic capability w/sugar production, CZZ has considered opening plants in the Caribbean. This is all a little too intellectual to translate to investment right now, but things look to be moving in a good direction. And i didn't sell any of my CZZ on the increase today.

Optiondragon, I look forward to checking out your site. In the meanwhile, your coal plays sound really good.

GLTA,
gabby

5 Must Read Articles in Oil and Alternative Energy

David,
Can't think of any links off hand. Like everyone else, I scour Bloomberg, Reuters, Financial Times and enjoy the InvestorVillage message board very much.

www1.investorvillage.c...?

CZZ is up today on the Bovespa -- 3% at this writing.

www.bloomberg.com/mark...

Last week, CZZ announced buying out a production mill in Brazil (expanding their capacity) and also that Credit Suisse has taken a 5.21% interest in CZZ. I'm not trying to pump CZZ -- just find it interesting and a sensible way to play ethanol with the added benefit that - If sugar prices go up they divert less product to ethanol & make "hay" on the sugar price. Disclosure -- I own some CZZ, bought KOL shortly after it debutted (got it under $40) and bought ACI on Friday. Also own some Xstrata (for about 18 months). I'm bullish coal for a number of reasons.

gabby

5 Must Read Articles in Oil and Alternative Energy

Oilsands,
The alternatives area is already super funded with subsidies. There is a 51 cent/gallon tax credit for US ethanol producers and a 54cent/gallon tariff on Brazilian ethanol. Gov. subsidized research and tax credits for cellulosic.... We actually need to encourage free market competition. That would be greatest and most efficient inducement. Diverting foodstuff, grains, vegetable oils isn't viable. I like your hydro power suggestion and I also like wind power. T.Boone Pickens is involved with wind.

Coal to chemicals maybe a very old story but the growth in China will be exponential.

gabby

5 Must Read Articles in Oil and Alternative Energy

David,
Nice analysis. GS downgraded the coal sector on Fri. 2/15, but the merits of that call has been viewed with great sceptisim -- especially by me. (Took it as a buying opportunity). WSJ had a very interesting article on Coal to Chemicals - China is at the forefront. Coal is being converted for the production of plastics, fertilizer and believe it or not -- pharmaceuticals.

Zulauf, has it wrong on sugar. Sugar futures are unbelieveably speculative. All the experts are divided as to whether sugar will be up or down. Buying sugar futures guarantees that you won't be sleeping at night. If you like sugar try DBA, which has a sugar component - along with wheat, corn & soybeans or RCI - Rogers Sugar Income Trust. I'm still very bullish on CZZ. Check out the price action today for CZZ on the Bovespa. In terms of ethanol, we will see an enormous capitulation on employing vital grains & foodstuff for ethanol. We are only starting to see food inflation, Asia has been especially hit with shortages. And, in the short term, cellulosic is not yet widely & cost effectively available. Sugar cane ethanol is well positioned.

Link follows on the Coal to Chemicals story -- GL, gabby

URL for this article:
online.wsj.com/article...