Last week marked the 74^th anniversary of the start of the 1933 Chicago World's Fair. And it's funny that in a world where we constantly look forward, looking back at an event like this can provide so much insight.

You see, the theme of that famous fair was "Century of Progress," celebrating innovations in architecture, science, technology, and transportation. Its motto, "Science Finds, Industry Applies, Man Conforms." An appropriate title, and one I think can be applied to the whole of time since the Industrial Revolution.

It's no secret that necessity has always been the main fuel for innovation. But I would argue that concealed in necessity are two different forces: true need and desire.

For comparison's sake, let's follow the history of solar panels and television--and how science found, industry applied, and we played right into it. C'mon, it'll be fun.

Originally conceived in 1884, the first commercially made electronic tube-television sets were sold in 1934--fifty years later.

The concept of converting solar energy into electricity was discovered in 1839--45 years before television--yet the process wasn't understood for more than a hundred years. By that time, some Americans were already enjoying color television.

The reason for the discrepancy in development time is simple. There was no real need for solar power--or the development of any other "alternative" for that matter--given the more immediately available resources at the time. So why, then, was TV commercially ready so quickly?

I like to think the reason stems from the other part of "necessity"--desire. But on to the point.

If we look at the companies that dominate the television industry--or the entertainment industry, as we shall see--we see the same names over and over:

The Radio Corporation of American (RCA), which by the way was established in 1919 by none other than General Electric, formed the National Broadcasting Network in 1929. Surely they wanted TVs everywhere so everyone could watch their network. As a side note, they also developed the eight-track and owned major music labels. Coincidence?

And Westinghouse . . . or is it White-Westinghouse? Or maybe White-Westinghouse the owner of CBS? No, wait. White-Westinghouse that bought CBS and then bought Infinity Broadcasting which then sold itself to Viacom and changed its name back to CBS while still maintaining a separate Viacom entity that owns MTV, Paramount Pictures, and DreamWorks. That's it.

And we played right into their hands: watching their shows and movies on their networks on their televisions.

So what does all this mean? And how is it pertinent to renewable energy? I'll tell you.

The time has come when renewable energy can no longer be marginal. There is a true need, for a laundry list of reasons ranging from political to ecological and economic to humanistic.

Though there are those still opposing it, their views are no longer relevant. We're witnessing a change in the tide. It's no longer an option. World governments are requiring it.

And we have a chance to make serious money on something that is being mandated.

Let's have a peek.

Viacom (VIA: NYSE) stock has barely gone above its introductory price since the previously mentioned name change/split with CBS:

CBS (CBS: NYSE) stock has done somewhat better, posting 27% in that same year-and-a-half time span:

But have a look at First Solar (FSLR: NASDAQ), which has never gone below their IPO price and is up 176% in six months:

Or JA Solar (JASO: NASDAQ), up nearly 35% in under four months:

This is what companies are capable of when there is a true, established, and growing need for their product. There are plenty of these companies out there or debuting soon because the technology is advancing much more quickly now that there is a need.

And there's more.

Major investors are now realizing what's going on. They see the opportunity and are doing all they can to get in on the action. Let's see what they're up to:

• JPMorgan, seeking to capitalize on the boom in environmentally friendly technologies, has established an alternative energy investment banking unit and hired a former executive from General Electric to run it.
• Credit Suisse formed a renewable energy banking group over a year ago and has done more than 40 deals in the area, including the first capital markets financings in the biofuel, wind and solar power industries. They, along with Morgan Stanley, led the highly successful IPO last year for solar power producer SunTech.
• Citigroup has an Alternative Energy Task Force within its energy investment banking group that targets deals in the solar, wind, biomass, ethanol and other renewable industries.
• Goldman Sachs, which two years ago became the first Wall Street bank with an official environmental policy, is also focused on green technology deals across its industry coverage groups and is among the largest principal investors in environmentally friendly technologies.

Not to mention ABN AMRO, Citi, Deutsche Bank, JPMorgan Chase, and UBS have committed to arrange $1 billion each to finance a Clinton initiative to green 16 of the world's largest cities.

Money is just being thrown at this sector.

So here we have an industry that's truly fulfilling a need. And at the same time it is starting to venture into the "desire" category as well, what with all the corporate and venture investment, media attention, and showcasing by Hollywood darlings.

And as the renewables industry matures, you can bet the mergers and acquisitions will increase as well--just as in the television industry. But in this case, the purchase of the end product will be needed and desired.

Sure, we'll still be watching their movies on their televisions, but they'll be powered by renewable energy from utilities that are required to buy it.

It's the proverbial perfect storm--a playhouse for investors like you, who stand to make huge and sustainable profits.

Science has found. Industry has applied. Are you ready to conform, and profit in the process?

Green Chip investors certainly are.

In fact, take a look at what happened to World Water & Power Corp. (WWAT: OTCBB), a little solar stock that Green guru Jeff Siegel recommended to his readers back when no one was paying attention.

In less than seven months the stock has soared more than 500%!

That, my friends, is how you make money!

I told you this was going to be fun.

Until next time,

Nick

P.S.--Jeff Siegel's latest geothermal play has been going gangbusters over the past few months. Just since January, the stock price has more than doubled. But Jeff thinks it's going to go even higher. He's even gone so far as to tell his readers the exact month the stock will really take off. It's August! You want to know why? Click here to find out.

 

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