Do you think it would be wise to buy long-term stock in a company that creates alternative fuel sources?

Question

Such as cellulostic ethanol?

Answer 1

1) Yes.

2) No.

Answer 2

I have some alternative energy plays, but I think that most of them will be losers.  The safer bet is to buy the big oil companies who will acquire these technologies if that this technology will be one of the ones used.  Another investment would be to buy the railroads who would move much of the grains involved in the process.

Good luck!

p.s. Investing in big oil has nothing to do with "supporting them". Chevron BP and Shell are spending more on alternative energy than all of the small caps combined. They have massive cash flows and are in the position to acquire any feasible business model or technology. They already have distribution, refining and production divisions with decades of experience. links below, do your own d.d.

Answer 3

It is not clear to me that buying stock on a personal ethics basis changes anything in the world except that it makes the investor feel "right".  For example, I do  not invest in distilleries, hand gun manufacturers, casinos, or pawnshops.  Maybe a few others.  But I do not kid myself that I have any effect on the world by doing that.  Just makes me feel clean.

As far as "wise", you buy stocks to make money.  Trendy industries only last a short while.  Next it will be solar or nano or something else.  Watch the charts and buy for profit.  As long as you feel "clean".

Answer 4

If they sent you a fancy four color brochure in the mail, NO.

Companies often form with 4-6 officers, issue millions of shares of worthless stock to these "employees" and then print up brochures for mass mailing. When people start to buy on information from these mailing the price may go up (from $.01-$-05 up to $.15-$.20.  The large insider stockholders sell as much as they can, take the money and disappear, leaving nothing for the new stockholders except maybe a piece of paper.

If you are doing your own research and evaluating the risks properly for YOUR situation, then it MAY be a good idea.

Answer 5

If you want gas prices to keep going up then you will buy stock in the big oil companies like one post is recommending you to do.  You are supporting them and giving them more money and in return will raise the prices some more.  You could invest in a company that creates a different fuel and I am sure the stock is probably cheap right now.  If that company comes up with an alternative solution then it could really pay off although the talk of these resources is still pretty new.  If a different company comes up with a better solution then your company wont have hope to survive.  It seems like a pretty big risk but could definitely pay off if the resource your company is coming out with proves to be popular.