Smart Energy Plays: Smart-Meter Makers

Editor's note: This column was submitted by Stockpickr member Winston Kotzan.

As global power grids face a capacity crunch, a new bull market is emerging in a nascent industry, called demand response.

This new field of demand response systems is still a maturing market, and the definite leaders have yet to be determined. A few of these pure-play companies may prosper, but it is also likely that some will sink and disappear. If you want to play these stocks from a speculative standpoint, I suggest taking small positions in each as a basket of stocks.

Smart-meter systems are similar to the electricity gauges found in most home basements, but more sophisticated. They have the ability to communicate with the utility, providing reports and automation that the customers can use to manage energy during peak hours, when electricity is most expensive. ...