Last December, I wrote about a report that claimed that solar stocks were the best play on the cleantech revolution. In that article, I analyzed the two solar ETFs: the Claymore/Mac Global Solar Index ETF (NYSEARCA:TAN) and the Market Vectors/Van Eck Global Solar Energy ETF (NYSEARCA:KWT).
At the end of the article, I said I had an open buy order on TAN. That buy order expired unfilled in January as the sucker's rally progressed, but TAN then dropped to the kinds of levels I was looking for on Monday so I took a position at $5.
As I said in the December article, this is long-term. I don't expect this investment to realize its full potential for another 18 to 24 months, so patience is of essence. Of course, certain catalysts, such as a rapid rise in oil prices, could push this ETF up before then, and I would be more than happy to take a little profit if that happened (I haven't been taking a lot of that recently...). But my time horizon is two years plus here - this a play on the thesis put forth in the report that in the long run solar stocks have significant capital appreciation potential.
DISCLOSURE: Charles Morand has long position in TAN.