24/7 Wall St. does not normally cover venture capital news, particularly when it doesn’t pertain to a pre-IPO company. But when we see news that Al Gore is joining a top VC-firm like Kleiner Perkins Caufield & Byers as a partner for green investing it sure makes one wonder just how much deeper the green investing trend will get. Interestingly enough, shares in alternative energy stocks are seeing severe profit taking today (see below).
Kleiner Perkins Caufield & Byers and Generation Investment Management have announced a global collaboration to find, fund and accelerate green business, technology and policy solutions with the greatest potential to help solve the current climate crisis. This partnership will provide funding and global business-building expertise to a range of businesses, both public and private, and to entrepreneurs. As a result of the collaboration, the chairman and co-founder of Generation, former Vice President of the United States Al Gore, will join KPCB as a Partner. KPCB has already committed $200 million to green tech ventures.
This doesn’t mean green tech companies can ramp up indefinitely and without logic, but this is one more piece to the green-tech investing strategies that have generated huge gains in 2007. These have pulled back some and may pull back further. In fact, as oil prices fall (and if it continues) then you are likely to see quite a correction in the green-tech sector. Corrections come and go, but with 2008 being a regime change election year it’s hard not to believe that there won’t be deeper pushes into environmental pledges from both sides of the aisle.
What is so interesting here is the argument between the believers and the doubters of global warming or climate change. Whether you believe in it or not, it’s actually silly to not recognize a major trend here. Green technologies (or more eco-friendly operations) are becoming mainstream and represent a major business opportunity here, regardless of politics.
If you wish to see our coverage of select alternative energy news from the financial angle, not the political side, you can set your RSS readers or save to favorites the following link:
http://www.247wallst.com/alternative_energy/index.html
Jim Cramer recently covered some of his favorite stocks he feels will win from these trends, even if these have recently come off highs. Not all of these are green-tech, but they will benefit from the trends already set in place.
Big green-tech stocks are taking it on the chin….
- PowerShares WilderHill Clean Energy (AMEX:PBW) is down nearly 6% at $22.98, and the Market Vectors Global Alternative Energy ETF (NYSE:GEX) is down 4.5% at $54.40….proof that it is quite widespread selling in the alternative energy sector;
- Fuel-Tech Inc. (NASDAQ:FTEK) is down 11% at $25.50;
- First Solar (NASDAQ:FSLR) is down 12% at $182.00;
- SunPower Corp. (NASDAQ:SPWR) is also down 12% at $113.00.
Here is a sample of our last "The Business Day In Global Warming" where we cover the business and financial side of green investing.
Jon C. Ogg
November 12, 2007
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If you thought you might not see another green energy or less-dirty energy exchange traded-fund, there is a new ETF for you. First Trust Advisors is launching the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund of the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ: GRID) today. So far we are seeing a gain in the ETF by 0.8% to $30.39, but on fairly thin trading volume of about 134,000 shares as of 11:20 AM EST. We have seen many other green ETFs, but this is actually the first designated ETF or ETN that is geared solely toward the smart-grid rather than just to green energy. There will be some overlaps in this ETF with others, but that is often the case.
