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| Tuesday Aug 08, 2006
Big profits...No jokeTaipan Group's Dynamic Market AlertBy Andrew Snyder--- Big profits… No joke Prospering WITHOUT OIL! The biggest winners on Wall Street over the next 3-5 years will be the small group of companies that successfully replace oil and energy. I call them “Free Power Technologies” The Tiny Companies Pioneering These “Free Power Technologies” Will Make You 30% Richer Each Year…For the Next Five Years ------------------------------- Big profits… No joke by Andrew Snyder, BreakAway Investor There is an old joke in the medical industry. A guy walks into a doctor’s office and says to the doctor, “My arm hurts when I bend. Can you fix it?” “Of course,” replies the doctor. “Just stop bending it.” But even with gas prices averaging above $3 at the pump, Americans are using 140,000 barrels more of gasoline each day than we did last summer. There is no quenching our thirst for more and more gasoline, no matter how high prices get. We are bending our arm more than ever, no matter how much it hurts. Rising demand has set the energy industry on fire. Smart investors have landed double- and even triple-digit gains by investing in the companies that feed our energy addiction. But as the oil industry heats up, so does its competition. The alternative energy industry has handed investors the same kind of profits… if not bigger. But are the gains sustainable, or is “green” energy nothing but a hippie’s pipe dream? Thirty years ago, if you would have gone to an alternative energy convention, the parking lot would have been filled with brightly painted Volkswagen Micro-buses and the bike racks would have been filled end-to-end. Inside, the convention hall floor would have been a sea of tie-dye. Today, the parking lot would be packed with Lincolns and luxurious SUVs. Inside, black and gray suits with only a sprinkling of ponytails would dominate your eye. This time, Wall Street would have the strongest showing. With so much serious attention and big money being put into the alternative energy industry, you would expect “green” power production to be up. Wrong. It’s down, even though alternative energy investments are up more than 60% over the last year. According to a recent BusinessWeek article, 6.5% of the nation’s energy came from renewable sources in 1975. Thirty years later, that figure has dropped to 6.1%. That is not something to be proud of. If we want to fully replace today’s high-priced gasoline with fuels like ethanol and biodiesel, we would have to increase production levels from current levels of 325,000 barrels per day to over 16.5 million barrels. It is a process that will require billions of dollars, if not trillions, and decades to accomplish. With figures like that is alternative energy the ultimate growth industry? Will biofuels eventually replace crude-based fuels? Probably not, but alternative energy will most definitely get a bigger piece of the pie. Researchers value America’s energy industry at more than $1.5 trillion annually. With its 6% share of the market, alternative energy gets about $91.5 billion of that revenue. Not a bad sum, but it will get bigger. The goal of most state and federal legislators is to boost alternative energy to a 33% share of the energy market within the next decade. It is a lofty goal and is likely unobtainable without some major economic pain. Simply trying to reach the goal is what will hand investors plenty of great opportunities. Follow the money from Washington. It will lead to profits. At Volume Spike Alert, we are tracking a company that is at the epicenter of an alternative form of fuel production that has Washington drooling. As I write, there are 10 bills floating around Capitol Hill that would hand this company a hefty subsidy. If any of them pass, share price will soar. At BreakAway Investor, I am recommending a company at the heart of the West Coast’s ethanol industry. Because ethanol is so difficult and expensive to transport over long distances, this company has a distinct advantage with its California location. The state’s government is one of the largest proponents of ethanol and alternative energy in the union. Truly, there are dozens of great alternative energy plays out there. If alternative energy usage bumps up to just 8% of overall energy consumption, it will give investors more than $10 billion in annual revenues. Alternative energy may never eclipse fossil fuels in our lifetime, but it is a viable source of energy that is here to stay. It is a highly volatile sector, but over time, it will make investors plenty of money. Short-term traders are already seeing big profits. I recently wrote a fully detailed outlook on America’s energy future. If you don’t mind reading nearly two-dozen pages of facts and figures with handfuls of investing tips thrown in, check out the BreakAway Investor Web site and give the report a read. It will be worth your time. Enjoy your day.
Clowns & Harlots: When Life Is a Beach by Christopher Corbett Every summer my wife’s extended family gathers in a rented beach house on the Outer Banks of North Carolina to celebrate family values, gorge on junk food, pine for days of yore, tell stories, get sunburned, peruse the works of Mary Higgins Clark and Clive Cussler, watch the same movies, eat more junk food and tell the same stories again. After a week, they return home carrying six cubic feet of beach sand. Meanwhile, the male members of the tribe engage in the traditional beach rituals -- trips to the Brew-Thru, injuring themselves with children’s toys, napping, playing solitary video games, discussing the musings of Rush Limbaugh or Bill O’Reilly and making extra trips to the Brew-Thru. These are patterns of behavior that any anthropologist would recognize from the Trobriand Islands to Nantucket.
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