Green Economy And Renewable Energy - Is It A Good Time To Buy Some?

I have been an advocate of certain green energy stocks and fighting what I believe is Climate Change and global warming. The issue has become very political and it is OK to have differences of opinion, though 90% of all certified scientists believe in a warming planet. Regardless of your belief, there have been certain stocks that I recommended trades on months ago that were profitable. Two of them were the Chinese electric car company (NIO) which rallied from 3 to 60 in less than a year (2000%). The other one that was on my 2020 spread-sheet with decent profits was Fuel Cell (FCEL). This company is in the business of creating carbon capture techniques and firms such as Exxon-Mobil (XOM) have invested billions of dollars in this technology.

Over the past few weeks, many renewable energy stocks have seen a massive 50% crash in prices. I was lucky enough to advise taking profits on some of these stocks near the highs a few weeks ago. When you see a stock soar 500% or more on speculation about the future, but the company has yet to see consistent strong profits and earnings, that is when things often cave in. If you are familiar with option trading and believe in the Green Economy, these two stocks among others should be looked at longer-term.

Jinkosolar (JKS) is a leading Chinese manufacturer of solar panels as well as electric car batteries. It too has sold off some 50% over the last few weeks as the market got ahead of itself. Longer-term, if you are familiar with option strategies, I would be looking to sell 2022, $30 put options in this and several other stocks to collect at least a 10-15% premium on your investment with limited downside risk 

After a 40-65% sell off in stocks like NIO, FCEL, JKS and more, I think longer term these are good plays.

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Alpha Stockman 4 weeks ago Member's comment

Yes, I'd say it is.