Before I get into today’s E&C, trading guru Ian Cooper wanted to update you on his recent, winning scores.

Ian, take it away...

Energy Legislation

Energy Bill speculation leads to 11-day 34% and 52% Gains

Nothing says “global warming emergency” like two inches of snow.  That’s what fell on the nation’s capitol, Wednesday.

Still, despite the ice and snow, a Senate committee passed legislation to combat global warming.

With the Bali climate talks underway, the end of the legislative session approaching, and the Iowa caucus weeks away, energy legislation lives on for another day. 

But the bill that’d boost vehicle fuel economy requirements by 40% by 2020, increase ethanol use by 2022, fuel alternative energy, including solar, and force $13 billion in new taxes on big energy companies, may now face resistance from the Senate and a possible presidential veto.

Senate Republicans and the Bush administration are threatening to block the bill if it includes a $21.5 billion tax package and a mandate that utilities get 15% of power from renewable sources.

But bill, or no bill, speculation of its passage helped Small Cap Trading Pit readers realize 34% on half of the Hoku Scientific (HOKU:NASDAQ) recommendation, and a current 52% gain on the second half. 

(Note: As of today, the stock is up another $0.50 on news that it entered a finance agreement with Merrill Lynch for up to $185 million for polysilicon plant construction. In addition to the loan and any HOKU cash contribution, Sanyo Electric, Suntech, Global Expertise Wafer Division, and Solarfun Power Holdings agreed to prepay a combined total of about $240 million for future product shipments.)

As I’m sure you can imagine an 11-day gain is excitable. 

Geoff, for instance, tells me, “Thanks I now have 150 shares of HOKU for free....  Signed up for the SC Trading Pit on Monday, bought into HOKU @ $7.92/sh on Tuesday,

Thursday AM sold enough shares @ $12.00/sh to recoup my original investment which left me 150 shares of HOKU for free :)  Does it get any better this? At the time of this letter that’s a $1700 gain in just 3 days or 150 free shares of a stock that has a great future.”

Francois tells me, “I had bought calls on Hoku on your alert and realized a 146% net gain in a couple of days!”

Ain’t it grand?

Ian L. Cooper
http://www.sctradingpit.com

Same Day, Different Year… Same Fight

A lot of people don’t know this about me, but I have hillbilly blood running through my veins.

It’s true. My grandfather was a country boy from the Smokey Mountains in Tennessee. He grew up in a small town called Rockford.

If you don’t know where Rockford is (and who would?), it’s not too far from the tourist attractions of Pigeon Forge, Dollywood, and Gatlinburg.

Pops was 6’4 and very thin. But even as a teenager, his wiry frame belied his strength. In fact, the story goes that he got his nickname “Buck” (as in a male deer) after a customer at the general store where he worked saw him carry three 75-lb bags of potatoes without straining or ever breaking a sweat.

For the most part, he lived a satisfying and comfortable life of a young country gentlemen.

But that ended on December 7, 1941.

The day after the Japanese attacked Pearl Harbor, my grandfather joined the Army. Naturally, because of his strength, he was chosen to haul and operate the .30 caliber machine gun for his platoon, which was part of the Red Bull Division.

He fought in North Africa, Sicily and then to Anzio, where he was wounded by German artillery. He visited more nations in 3 years than I probably ever will in my lifetime.

Although he never served in the Pacific theatre, the attack on Pearl Harbor resonates with me because it was the official start of America’s involvement in World War II.

The Japanese raid on Pearl Harbor was one of the great defining moments in history. A watershed event for America.

A single carefully-planned and well-executed stroke removed the United States Navy's battleship force as a possible threat to the Japanese Empire's southward expansion.

America, unprepared and now considerably weakened, was abruptly brought into the Second World War as a full combatant.

Eighteen months earlier, President Franklin D. Roosevelt had transferred the United States Fleet to Pearl Harbor as a presumed deterrent to Japanese aggression, as they badly needed oil and other raw materials to continue its imperial ambitions.

Japanese access to oil was gradually hampered as its conquests continued. In July 1941 the Western powers effectively halted trade with Japan. From then on, as the desperate Japanese schemed to seize the oil and mineral-rich East Indies and Southeast Asia, a Pacific war was virtually inevitable.

By late November 1941, with peace negotiations clearly approaching an end, U.S. officials fully expected a Japanese attack into the Indies, Malaya and probably the Philippines.

By December 7, 1941, they’re thinking was validated.

It might be 66 years later, but the world is still fighting over oil. And I’m afraid to say that I see more conflict in the years ahead over black gold.

In memory of the Americans who fought and died in World War II,

Brian Hicks