A HUGE New Energy Trend Is Just Getting Started

A HUGE New Energy Trend Is Just Getting Started
By Tom Dyson, editor, Penny Trends
December 3, 2009

If you're a trader, you must know the big trend in geothermal energy is finally heating up...

Geothermal energy is a way of producing electricity. At certain spots around the Earth, usually at the boundaries of tectonic plates, heat reaches the surface of the planet in the form of molten rock, or magma. The molten rocks heat the surface water, producing steam. Geothermal companies harness this steam to drive turbines and produce electricity.

I love simple businesses. Geothermal is the world's simplest source of electricity. The power is cheap, it runs 24 hours a day, and it's clean. These characteristics make geothermal the ideal energy source for politicians who want to show the voters they care about climate change.

A few weeks ago, the Department of Energy announced it was granting $323 million to 123 geothermal companies in 39 states. And just before that, it announced a program for geothermal companies to get cheap loans, guaranteed by the government.

But here's the important thing: Geothermal is a profitable and economic business without government subsidies. The subsidies are just a bonus to pad our wallets.

As I told DailyWealth readers last month, geothermal is Rick Rule's largest personal speculation. Rick is a legend in the mining and energy industry. He says you can normally make 10% returns from geothermal energy, but with the government's subsidy, you can now make 18%-20% returns per year.

I've been waiting to get into geothermal until Ormat Technologies reached a major new high. Ormat is the elephant in the geothermal industry. It's the industry leader with a market cap of almost $2 billion... You can't develop a geothermal business in America without doing business with Ormat.

If there's a boom in the geothermal business, Ormat's stock will reflect it. Now, here's where it gets interesting...

Ormat just broke to a new 13-month high.

Trend traders don't rely on economic predictions. They don't place "price targets" on assets. They know history constantly proves economic predictions and price targets are no better than coin flips.

Rick Rule's Largest Personal Speculation

Commodity Q&A: The Only Alternative Energy Worth Your Time

The best trend traders simply locate assets with massive upside potential – like geothermal stocks (and silver stocks as we covered this summer) – and wait to see a bit of price strength before taking a position. They wait for the market to confirm their fundamental analysis.

How high can geothermal run? No one can say for sure. But the smallest stocks in the sector have the potential to rise hundreds of percent... and the bellcow of the sector, Ormat, just broke out to a new high. It's time to get long.

Good trading,

Tom

P.S. Readers of my microcap trend trading service Penny Trends just received the green light to buy our favorite two penny stocks in the sector. You can access these stocks with a trial subscription to Penny Trends. Learn more here.

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•	Big garbage firms Republic Services and Waste Management hit new highs.
•	The boom is back in fertilizer stocks... Potash, Syngenta, Mosaic, and Agrium make fresh highs.
•	Natural gas plummets... Fund UNG fell 4% yesterday to a new 52-week low.
•	Earnings today... Novell, Siemens, Smith & Wesson, Toll Brothers.

	Last	Change	52-Wk
S&P 500	1109.30	+1.45%	+27.03%
Oil (USO)	40.29	+2.99%	-12.75%
Gold (GLD)	111.63	+1.72%	+52.29%
Silver (SLV)	18.01	+5.01%	+92.41%
U.S. Dollar	75.37	+0.68%	-13.15%
Euro	1.49	-0.70%	+17.54%
VIX	22.89	-2.01%	-65.48%
HUI	475.53	+3.26%	+155.07%
10-Year Yield	3.33%	-0.10	-0.37

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Company	Sym	Industry
Itau Unibanco	ITUB	bank
3M	MMM	conglomerate
BNSF	BNI	railroads
Bank of Montreal	BMO	bank
ADP	ADP	payroll
Sysco	SYY	food services
ConEd	ED	utilities
NetApp	NTAP	data storage
Petrobras	PBR	Big Oil
Verizon	VZ	telecom
Home Depot	HD	home goods
Texas Inst	TXN	semiconductors
FedEx	FDX	air freight
AFLAC	AFL	insurance
Waste Mgmt	WM	garbage
Paychex	PAYX	payroll
Yamana Gold	AUY	gold mining
Google	GOOG	online search
Banco Bradesco	BBD	bank
Barrick Gold	ABX	glod mining
MasterCard	MA	credit cards
Syngenta	SYT	fertilizer
HDFC Bank	HDB	bank
Telmex	TII	telecom
Intuitive Surgical	ISRG	medical devices
Estee Lauder	EL	make-up
BHP Billiton	BHP	mining
Unilever	UL	packaged goods
Alcon	ACL	medical supplies
DuPont	DD	chemicals
Corning	GLW	telecom
Teck Resources	TCK	mining
American Electric	AEP	utilities
Progress Energy	PGN	utilities
Yanzhou Coal	YZC	coal mining
J&J	JNJ	Big Pharma
Deutsche Tele	DT	wireless telecom
SPDR Gold	GLD	gold fund
MedcoHealth	MHS	pharma
Mosaic	MOS	fertilizer
Becton, Dickinson	BDX	medical supplies
ASML	ASML	semiconductors
Gold Fields	GFI	gold mining
Agrium	AGU	fertilizer
Pfizer	PFE	Big Pharma
Amazon	AMZN	online shopping
An-Busch InBev	BUD	beer
Southern Copper	PCU	copper mining
Express Scripts	ESRX	pharmacy mgmt
AngloGold Ashanti	AU	gold mining
Sempra Energy	SRE	utilities
Republic Services	RSG	garbage
Vodafone	VOD	wireless telecom
Honda	HMC	autos

Company	Sym	Industry
U.S. Nat Gas	UNG	natural gas fund
Hot Topic	HOTT	clothing stores
Princeton Review	REVU	for profit ed
Seahawk Drilling	HAWK	oil & gas drilling
China Ritar	CRTP	electrical equip
MiddleBrook	MBRK	pharma

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