BREAKING DOWN ALTERNATIVE ENERGY

Alternative energy has been a very hot topic as of late throughout the world of investing, so here is a breakdown of what all the fuss is about.

There are 6 main types of alternative energy being discussed today; wind, hydro, solar, biofuels, fuel cells, and LED's.

Wind - This industry is already competitive with oil and gas since it costs the same as oil and gas when it comes to generating electricity. However, the downfall of this industry is the fact that there are not too many available sites since this is not exactly the newest technology.

Hydro - Again like wind growth, hydro power is limited because of a lack of sites. Another big negative of hydro power is the fact that it destroys the environment, along with the communities and ecosystems of many species.

Solar - The cost is expected to become competitive enough in the next 5-10 years to make a large impact. Furthermore, of the 5 types of alternative energy it appears that solar has the most potential in the next 25 years. Best of all, solar power relies on the sun, the most abundant source of energy known to mankind.

Biofuels - Probably the most talked about of the group, biofuels like ethanol are probably the best near-term option for replacing fossil fuels, but also pose the least rewards through conservation.

Fuel cells - after many years of research, fuel cells are still far from being efficient so this technology probably has the least chance to succeed in the near-term. However, they will surely be very useful one day, especially in cars.

LED's - as discussed in the previous article "One in a lifetime opportunity", LEDs are a force to be reckoned with. LEDs should hit their peak in 2010. For more on LEDs and a company which we like very much (symbol: CLRK), please check Darwinian's article.

As for companies in these industries that have been put through the MGR Coefficient; only 2 have been completed which are TSL and ESLR. TSL received a score of 2.35 while ESLR received a score of 3.44