Harper's magazine - bubble in alternative energy

[john77]

The February issue has an article on alternative energy being the next bubble. The key writer has a website and did a short interview - the website is www.itulip.com.

Two thoughts:

1) If this is nuclear energy and energy stocks in a magazine - then it is SCARY from a mass psych point of view as the stocks are being discussed in the general media at a BOTTOM and not a TOP.

2) If he is right and the bubble is in the formation stages, then even last year's highs would be considered "early" to the party.

[Croaker]

John,  Interesting read on the site. Do you subscribe to his newletter or is select? If so, what are your thoughts on it.

[langman57]

He raises some good points, but I'm not buying it. Yes, in the short term alternative energy may be overbought, but there are so many forces at work propelling it forward, and it's such a young industry, I think (and hope) he's wrong. High oil prices and greenhouse gases, along with energy shortages are forcing many governments hand. As far as the US, much will depend on who is elected in the fall.  A comprehensive green energy agenda could help to save our economy.

By the way, now you have to take me seriously as I'm a JUNIOR MEMBER!!

[john77]

I don't subscribe to his newsletter...

[punter]

I didn't read the article buy it fits with the basic premise of the law of unintended consequences. There will be a next new thing. Interesting to see if alternative energy will be it. The greed of the investing public will not stay out for long. Theres only two things that drive investor psychology -Fear and greed. With all the additional dough thats being flooded back into the market it's going to bubble up somewhere. I don't think it will be long before we see a tsunami of paper going into something. I like big themes in my investing. Water Gold Energy Commodities and developing economic growth. I hold positions in Agrium, Hang Feng for the food shortages showing up. Another sleeper has been Canada Bread- CBY .

[john77]

I've been searching for sites based on "negative" news for the fundamentals of the uranium market. Seeing your stocks crash makes you search for reasons, and more importantly search for reasons that it may not be just "irrational" behavior making your U picks crash.

It turns out that uraniumseek.com, the site I posted with a good grouping of news articles, linked me to this:

http://www.mineweb.com/mineweb/view/mineweb/en/page38?oid=44927&sn=Detail

The title of the article basically asks the question if the U bull run is over, and puts some comments on the possibility of oversupply in the spot market causing the crash in U prices and U stocks.

Here's the thing: if U is going to be part of an alternative energy bubble, oversupply does NOT lend well that. In fact, for those of you still in U stocks, isn't the reason why we hold the stocks because of the fundamental UNDERSUPPLY? I can not really understand how utility companies are not snatching up U a spot prices when the long term price is higher. In fact, it makes me very worried that at the end of January, the long term U price will tick down.

Any comments on the fundamental nature of the U markets?