• 6 minutes Can the World Survive without Saudi Oil?
  • 8 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 12 minutes Iranian Sanctions - What Are The Facts?
  • 2 hours Judge Approves SEC Settlement With Tesla, Musk
  • 4 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 5 hours Censorship has a price: Google’s CEO Defends Potential Return to China
  • 6 hours Two Koreas: U.N. Command Wrap Up First Talks On Disarming Border
  • 2 mins How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 2 hours Porsche Says That it ‘Enters the Electric Era With The New Taycan’
  • 6 mins EU to Splash Billions on Battery Factories
  • 5 hours $70 More Likely Than $100 - YeeeeeeHaaaaa
  • 4 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 2 hours Dow logs 830-point loss
  • 2 hours Gold price on a rise...
  • 2 hours Saudis Threaten Retaliation If Sanctions are Imposed
  • 3 hours Saudi Crown Prince to Trump: We've Replaced All Iran's Lost Oil
Alt Text

Brazil’s Opposing Energy Views

Despite Brazil making significant strives…

Alt Text

The Solar Tech That Is Making Cleaner Oil

As oil’s supermajors face increasing…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

Rare Value In Alternatives

Until now, I have said very little about alternative energy stocks. Let me make it clear; it’s not that I don’t believe in the desirability or potential of renewable energy sources. Population growth and increasing demand for energy make it essential that the World’s reliance on fossil fuels comes to an end fairly soon.

It’s just that everybody who looks rationally at evidence and science knows and understands that and, because of that, value is hard to find in the sector. The conversion to alternative energy will come one day, but that day is unlikely to be next month. The stocks of many alternative energy companies, however, are sometimes priced as if that day were coming next week. In short, value is hard to find.

Value is a tricky thing to define. Just because something is cheap, that doesn’t mean it represents value. There is an old saying among London forex traders; “You can’t eat value”. The point is that it doesn’t matter how much value you perceive in something, if you buy it and the price falls you still lose money. I understand that, but when looking for opportunities in any market, the ratio of the price to earnings (P/E), especially in comparison to other companies, is one of the few metrics that really count.

Companies in the solar energy business have baffled many on that basis for several years. Multiples in the broader market have recovered since the recession. The average forward P/E…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News