Alternative Energies Are Starting to Play a Larger Roll Because of Iraq Editor’s Note: After watching the State of the Union address last night, we got to thinking about Iraq. We don’t normally like to discuss politics here at Penny Sleuth, but it might just bring some interesting penny stock ideas. Jamie Ellis from our sister publication, Whiskey & Gunpowder, explains… Iraq Goes Green By Jamie Ellis January 29, 2008 Everyday, Americans focus on countless problems that have arisen due to the war in Iraq. One of the clear problems we’ve come across has been the supply and price of the world’s oil. No matter what side of the issue you’re on, it’s hard not to notice the effect this conflict has had on our number one source of fuel.
Iraq, under Saddam Hussein, was one of the world’s largest oil producers. Many experts predicted that with Hussein out of power, Iraqi oil production would only rise. This has not been the case. If anything, the war in Iraq has significantly harmed the production of oil and raised the price to record levels. Tensions in the area continue to grow. So that’s the bad news. Despite what many people think, there actually is good news coming from Iraq. This is news that should delight the very people who have opposed to the war from the beginning. According to Gallup, the majority of Americans who oppose the Iraq war are Democrats. The same can be said for the majority of Americans who believe global warming to be a major problem. Based on those facts, it may be fairly safe to assume that the same people who oppose the war are the ones asking for changes when it comes to global warming. Many of these people want the government to do something significant about this problem. ************************************ The Secret of “Super-Leverage” The stock market of the past few years has produced very few millionaires. You just can’t make a million dollars with a $5,000 initial investment on an eight-year average annual return of 1.25%. To do so would take you more than 426 years. But, I’m here to tell you about one way that could have turn $5,000 into $1 million in just over five years. This may be the only place for you to see those same results… Check it out here… ************************************ As more and more people talk about global warming, millions are looking for alternative forms of energy that are cleaner and more environmentally friendly than oil. The technology for alternative fuels is there. The solutions are just way too expensive. Take hybrid cars, for example. Right now, the Honda Civic sedan starts at $15,010. The popular family vehicle gets 36 miles per gallon. The hybrid version of the Civic starts at $22,600. The hybrid operates at 45 miles per gallon. Clearly, owning a hybrid will have you fueling up fewer times a year and is better for the environment. But are the savings in gas consumption and environmental effects worth it for the average customer to pay over $7,000 more for the “green” vehicle? Based on an average of 12,000 miles driven per year and paying $3.09 for every gallon of gasoline, the savings you get by choosing the hybrid car are only $207 per year. It would take over 33 years to make up for that extra cost. That hardly sounds worth it to me. One of the only ways these hybrid cars will become more affordable and then be used by more people will be if oil prices begin to rise. The higher oil gets, the more affordable by comparison environmentally friendly alternatives will become. Not only will rising prices balance the differences between oil and alternative energies, but the more expensive oil gets, and the greater a national emergency it becomes, the more incentives to improve energy technology rise. ************************************ The Ancient Secret of China Lake There is a secret, carefully guarded “energy discovery site” just 113 miles northeast of Los Angeles, Calif., that anybody who’s ever wanted to explore booming energy stocks needs to know about. The U.S. Navy has given it a code name: “China Lake — Navy One.” Here’s your chance to cash in on five penny stocks that are set to exploit this “secret” energy… Check it out here… ************************************ The incentives will also rise when further political pressure is put on the government. When that happens, subsidies for alternative energy programs will increase. If political unrest continues in the Middle East and the countries that control OPEC refuse to step up production, Americans will have no choice but to curb their use of oil and will then be forced by the market to become part of the ecological solution. You can already tell that the issue of government subsidies for alternative fuel is one that companies in the energy business are pushing for. According to the National Venture Capital Association, startup companies that focus on clean technologies attracted more than $800 million in venture capital last quarter alone. That shows that there are plenty of investors willing to put up their money hoping the winds are changing toward clean products. It’s just something to keep an eye out for… Until next time, Jamie Ellis P.S.: We are already starting to see some progress on this front. In a special report, Greg “Gunner” Guenthner discusses two alternative energy plays that should give penny stock investors big fat profits. Check them out here… |