Renewable Energy Companies

My eggs hatched last week.

Every spring since I bought my house—in April of 2006—a robin has made a nest atop the light on my back porch—an unconventional location, to say the least.

That first year, the three small blue eggs hatched on May 17^th.

In 2007, another brood of three escaped their shells on May 16^th.

And this year, two featherless robins joined us on May 15^th. Here's a picture of the now four-day-olds I took with my phone:

Now, I can't say whether or not the same mother bird has called my back porch home all three years. If I had to guess, I'd say they were different birds, for reasons ranging from their appearance to the way they guard the nest. (This year's mother is especially steadfast, not even leaving the nest when I pass with the lawnmower.)

Before we get into how the eggs in my nest relate to renewable energy companies and your nest egg, let's first prod the issue of the advancement of the hatch date.

Climate Change and Early Spring

You may have already seen similar stories of scientific studies correlating earlier breeding and blooming with global warming—in the politicized way that we're now all so accustomed to.

But what those studies didn't do was make a solid connection between anthropogenic (human influenced) climate change and the attributes of earlier seasons. They only connected rising temperatures.

A new study, coauthored by Cynthia Rosenzweig of NASA's Goddard Institute for Space Studies, aims to change that.

The study works to rule out observed changes that could have been caused by non-human factors.

Rosenzweig and her coauthors combined about 30,000 sets of data about biological and physical changes around the world. That data was then compared with an extensive database of global temperature information.

Here's how she explained their process: "We overlay those two global datasets and then we do a spatial pattern analysis globally about the co-location of significant temperature trends and observed changes consistent with warming."

She added, "When you look at all of the glaciers and all of the snowpack and all of the birds laying eggs earlier and all of the plants having spring earlier across a continent, then we see we can detect anthropogenic signals. We see that those are strongly co-located."

Whether you agree with Goddard scientists, or my backyard analysis, is irrelevant. The earth is warming.

If we can collectively move past that point, you'll see that there are massive profits to be made, fueled, in part, by the massive efforts of governments and intergovernmental organizations to combat climate change.

You'll also see how, like eggs, stocks can be incubated and harvested for reward. Although the gestation time may vary.

Renewable Energy Companies: Early Spring, Early Profits

Just as the robin is responding to a changing climate, so can you adapt to an altered investment environment by starting early.

This can be attributed to the billions being invested to curb climate change. From wind farms in India to rooftop solar in California, the legislative actions you've been hearing about are fast altering the bottom lines of many renewable energy companies.

For example, back in March—before the robin had laid eggs and while solar stocks were sinking with the broader market—Solarfun Power Holdings (NASDAQ: SOLF) was just another unloved solar stock, trading under $10 per share.

In late March, the company reported Q4 2007 earnings and beat The Street consensus. The stock took off and hasn't looked back. It now trades above $26.

Likewise, a few weeks ago ReneSola Ltd. (NYSE: SOL) was the unheard of, new kid on the solar block, trading in the $7-$8 range.

Good earnings reported on May 14^th catapulted the stock to $20 levels. It now trades above $28, and looks to be headed higher.

These types of scenarios have been played out numerous times in this vernal earnings season.

And more instances are yet to come.

China Sunergy Co. (NASDAQ: CSUN), for example, has been on a good run the past week, climbing from around $10 to $15—an easy 50% gain.

Their Q1 earnings are slated to come out tomorrow before the market opens. If they report earnings even a penny better than the analysts' estimates of a five cent loss, expect the stock to nudge significantly higher.

And the aforementioned Solarfun will report its Q1 earnings before market open on Thursday. Judging from the activity in this stock leading up to earnings, it looks like investors are betting this one to surprise to the upside as well.

What we're seeing, as I hinted at earlier, is climate change prevention spending finally trickling down to the individual company level.

In essence, a vague UN project you heard announced a year ago is being realized this year on a company's balance sheet.

Profiting From Renewable Energy Companies 

And it's going to start happening more and more. At the Alternative Energy Speculator, we're going to take those revenues all the way to the bank.

The portfolio, now up about 25%, has already seen triple-digit gains from a few rounds of earnings. But in addition to the opportunities I've outlined above, there are plenty more to come.

Not just in the solar industry either. The portfolio is primed to reap profits from several sectors encompassed within the renewable and alternative energy markets.

So you can embrace the egg phenomenon and all the ensuing spending and profits by turning to an unconventional investment angle.

Or you can stick with traditional energy plays. But be warned—I've seen the remnants of birds choosing traditional paths scattered around the neighborhood.

Don't let your portfolio fall victim to the same plight.

Call it like you see it,

Nick

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