Getting Investment Ideas: Alternative Energy Stock ORA

I've written about how you can "get ideas" from Inner8 when you login and use that specific tool. And today, as I was using the "3 ideas" tool, one of the stocks that caught my attention was Ormat Technologies (ORA).

Ormat is a company that specializes in geothermal power, as well as recovered energy and remote power units. These are interesting, if little talked about, ideas concerned with alternative energy. Apparently others in the Inner8 community are interested in ORA as well; the company is getting generally bullish sentiment from other community members.

However, when one clicks on the ORA symbol on the Inner8 page, a tale of caution is seen. While Ormat is up right now many of the stocks that generally move with ORA are down. About half the stocks that normally move against Ormat are up. This means that ORA may not be solid as one might think at first glance.



But, I think I have a measure of optimism for Ormat Technologies -- at least over the long haul. Clean energy stocks have good potential, since President-Elect Barack Obama is expected to try to encourage policies that favor clean energy and energy technology. This means that, while many clean energy stocks are low priced right now, they could go up as the alternative energy sector gains traction under a new administration.

ORA does have a strike against it, though. Despite its focus on clean energy and clean energy technology, geothermal is not something that is really been in the public conversation. Most clean energy publicity focuses on solar and wind. If geothermal doesn't catch on, then an investment in ORA turns out to be foolhardy. On the other hand, if geothermal (or maybe the recovered energy generation) catches on, then getting in now would be the smart move.

Ah, the risks inherent with investing.