Monday, July 16, 2007

Alternative Energy

I have always preferred to own oil and gas companies over stocks related to alternative energy. Mostly because alternative energy companies are highly dependent on the federal government for subsides to run a profitable business. Now many solar companies are publicly traded and less dependent on the government. The best way to play the growth of solar energy is to own MEMC Electronics (WFR). They manufacture the polysilicon for solar panels.

My second alternative energy stock is NRG Energy (NRG). NRG develops and manages power plants. The US power grid will need to be updated and NRG stands to benefit. NRG is a diverse company with operations ranging from energy trading, distribution, and generation. NRG will be a key player in the "clean coal" IGCC initiative as well as nuclear power.

Note: As of 7/16/07 I have no position in NRG or WFR

Sunday, July 08, 2007

Google's Pay Per Action Should Help The Bottom Line

In late June Google (GOOG) launched a new way for publishers to make money. Through the Google Adsense Network, publishers can receive compensation for sending a visitor to an advertiser's web site only if the visitor completes the specified task by the advertiser. For example, a publisher would only get paid if a visitor completed an online form or purchased a product. Publishers won't get paid for simply redirecting traffic.

This is great for the advertiser because they now have a direct way to calculate the ROI on their ads. In the end this will be a big win for Google because of the large base of publishers and advertisers already in their advertising network. Pay Per Action commands more dollars then regular clicks and should cut down on fraud since the tasks need to be tracked.

From an investment perspective, Google seems to be fairly valued at these levels. I would be a buyer on any weakness.

Google Press Release

Note: I am long GOOG