Updated from 6:59 a.m. EDT

Forget about technology stocks; forget about biotech stocks. Alternative energy stocks are the "new" growth stocks on Wall Street.

Investors are increasingly turning their attention to sectors such as wind, solar, fuel cells and even ethanol in search of the next big thing. The general public's interest in these new technologies is so high that a new TV channel was created by Discovery ( DISCA) that will focus on green initiatives and eco-friendly lifestyles.

With all this hoopla being created, it seems as if the love for anything alternative-energy-related will never end. Even when these stocks fall, Wall Street immediately calls the selloffs buying opportunities. Investors foolishly listen and cast aside fundamentals while jumping into the hottest names head first.

A lot of what is going on now in alternative energy stocks reminds me of the dot-com days. A new technology is discovered and then hyped up as the next great thing that will solve everyone's energy dependency problems. Unfortunately, very few companies actually end up delivering on the hype, just as very few dot-coms survived or ended up making money.

Despite that reality, investors continue to hold on to hope that they have found the next First Solar ( FSLR - Get Report) or the next Energy Conversion Devices ( ENER). And although some stocks will be winners, many will leave investors holding the bag.

Market players who pick the wrong stocks in the alternative energy complex will certainly experience pain. Remember what happened the last time profits in a sector didn't matter. Don't let history repeat itself -- avoid the dogs!

With that in mind, I've found several alt-energy stocks that I think are headed way down, such as VeraSun ( VSE) and Capstone Turbine ( CPST - Get Report).

To read the rest of the story, and for six energy stocks that could go to zero, please click here.

A note from James Altucher:

Every weekend I send an email to Jim Cramer and several hedge fund managers about the most interesting portfolios posted on Stockpickr that week. Usually those portfolios not only list stocks according to atheme but also offer significant analysis as to why the stocks are cheap.

Here are some examples:

Here's the challenge: Build a portfolio at Stockpickr.com with greatanalysis, and send me the link. Each great portfolio (with analysis)will get posted on TheStreet.com with your byline (as a "StockpickrGuest Columnist") and will be included in my email I send to Jim and the otherhedge fund managers on my list.

Stockpickr is a wholly owned subsidiary of TheStreet.com.