Friday, July 30, 2010

Are there any environmentally-friendly public companies that benefit when the price of oil falls?

Most environmentally-friendly companies, especially the ones involved in producing alternative energy like wind and solar, suffer when the price of oil falls. It's cheap to burn gas, which makes the alternatives less attractive.





The price of oil being as volatile as it is, a green portfolio with nothing but alt-energy stocks would be volatile and risky. It would take a beating whenever oil falls. In order to make the portfolio's outcome less variable, one would have to include stocks that are counter-cyclical with respect to oil.





Are there any such stocks among environmentally friendly companies?Are there any environmentally-friendly public companies that benefit when the price of oil falls?
I would suggest that you consider those companies that provide environmental compliance equipment and services. For example: FTEK, PMFG, or MPM.





Also, there is a fair amount of platinum that is used in catalyzers. I am not sure how to play that, but it's an idea.

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