My guess is that alternative energy is probably due for an assault next. It stands to reason that alternative energy, wind, solar, recyclyled garbage began to flourish when oil hit $120 per barrel and you and I were paying $5.00 a gallon at the pump. Alternative energy costs, although expensive had a chance to compete in the market and they certainly did. They came with tax credits, government mandates, political correctness, big backing by ecologically minded groups and individuals. Wind farms sprung up in the middle of every sand dune or mountain top readied to feed power to the grid. Solar panel manufacturing couldn't keep up with demand and plants to produce huge quantities expanded to China and other cheap production locations worldwide.
Now a glut of oil is flooding the market, oil purchasing is down, which has created the lowest prices in years with expectations of a softer market. Why would any company or municipality choose alternative energy over oil if not mandated?
Growth of alternative energy has to be affected by lower energy costs especially in light of the cap-ex requirements of alternative energy companies, market reluctance to convert from oil, pushback by investors to invest in the sector, and serious lack of profitability. Conversely oil and metals are "cheap" with upside. If you follow the axiom of buy low and sell high, now is as good a time as any to value invest.
The best time to buy is when no one wants to buy. Right now, it's a fire sale on energy stocks and MicroCaps are suffering from a lack of liquidity and support. Stock picking is more of a science than an art. Pick a few stocks to watch, perform due diligence and good luck.
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