This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

6 Tired Arguments the Energy Sector Needs to Purge in 2012

These companies have made a lot of money for investment bankers, a lot of money for executives through stock options, and a lot of money for the hedge funds and other shorters smart enough to see through the rhetoric and markets' disconnect and play these stocks as nothing more than convenient fast money vehicles, and ride these stocks like First Solar and Cree (CREE) all the way down in 2011.

The returns paint a grim picture of all the good social good does for investors who buy into the social good argument in industries still in their infancy and without a clear road to sustainable profits:

As solar analyst Paul Leming of Ticonderoga Securities, who has been in it from the beginning, recently said, "The volatility in this space has been amazing -- and I'd never bet against [the bulls] telling people that Shangri-La is now right around the corner. The thought that goes through my mind is that many of these stocks have declined 90% from their peak -- FSLR $310 to $32; SunPower (SPWR) $140 to ... whoops $6 (95%); MEMC Electronic Materials (WFR) $95 to $4 (another 95%'er). There has been a one-way trade for three or four years in this group. Within that long-term secular trade, there have been too many short-term trades to count. That is going to continue."

I hope not, but I don't doubt it, and the point is, social good alone does not make for a viable business, even if it makes for a darn good trading strategy. For investors, if you've been burned, try to remember that feeling good about green energy can still make you feel very nauseous when monitoring your portfolio.

Though forget about stock market investors. The larger queasiness is knowing that all of these tired arguments about the energy wars will be dusted off once again in 2012, and there's nothing anything anyone can do about it, except ignore them.

-- Written by Eric Rosenbaum in New York.

>To contact the writer of this article, click here: Eric Rosenbaum.

>To follow the writer on Twitter, go to Eric Rosenbaum.

Follow TheStreet on Twitter and become a fan on Facebook.

To submit a news tip, send an email to: tips@thestreet.com.
5 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BRK.B $130.41 0.00%
CHK $7.57 0.00%
FSLR $47.26 0.00%
GE $23.88 0.00%
XOM $72.08 0.00%

Markets

Chart of I:DJI
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,913.85 -58.33 -2.96%
NASDAQ 4,636.1050 -140.4030 -2.94%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs