Thursday, October 20, 2011

Obama's Blunder: The Sorry Truth About Alternative Energy

Despite the hype, green energy has been a big disappointment for investors. Yet there is one sure thing staring us right in the face. And McKinsey estimates it'll soon be worth $520 BILLION...

Discover how you can position yourself to profit now!

Dear Fellow Investor,

President Obama took a beating over the Solyndra scandal. He lost major political capital, and some $535 million in taxpayer money just went up in smoke.

But I'm not writing to argue about whether the government should be guaranteeing these sorts of loans, or about whether this was a case of "crony capitalism" as some have alleged...

Because that's not the real story! In truth, $535 million is peanuts.

Solyndra isn't the first alternative energy company to lose big money, and you can bet it won't be the last.

That's the PROBLEM with alternative energy...

Every few years, we're told of another "energy miracle." An alternative energy source that is going to boost our economy, release us from the grip of hostile Middle Eastern sheiks, and save all humanity from the impending doom of climate change...

And, of course, make a fortune for investors.

But it never pans out. For 20 years I've heard the talk, but I've yet to see one of those miracles come through.

The truth is, every alternative energy source poses substantial problems, whether it's solar or nuclear power, clean coal or natural gas. And they all lose money!

Have you ever heard of the "Microsoft of alternative energy"? Or a "green energy billionaire"? Neither have I. There isn't one!

Instead the investment losses just keep mounting...

Solyndra's just the tip of the iceberg. The U.S. government -- and dozens of venture capitalists -- have poured billions into the search...

Billionaire T. Boone Pickens spent a reported $10 billion to build a vast wind farm in the Texas Panhandle... too bad the lines to carry all that energy never materialized.

The federal government gave $100 million+ in grants to two clean-tech battery makers, Ener1 and A123, yet their stocks are still down 92% and 61% respectively, over the past year.

The state of Massachusetts plunged $58 million into Evergreen Solar, but now the near-insolvent company says it's only obligated to pay back $4 million, leaving the state with a gut-churning 93% loss.

The price tag for all these false starts may actually be in the trillions.

Not to mention the incalculable human and environmental disasters caused by our search for alternative energy...

Despite our best intentions, the disasters keep happening...

Death and destruction aren't usually included in the alternative energy story. Even so...

Areas around Japan's Fukushima nuclear plant may be uninhabitable for DECADES after the tsunami and generator failure that caused a meltdown.

In Dimock, Pennsylvania, ground zero for natural gas "fracking," residents' well water has turned brown. One well just spontaneously combusted! And no one knows why all the pets and horses are losing their hair.

Last September, a natural gas pipeline blew up in San Bruno, California, burning down an entire neighborhood... killing eight people and injuring 60.

Difficult as they may be to reconcile with the happy vision of a green economy, these failures are a part of the sorry truth about alternative energy.

What makes the situation all the more troubling is... there IS one SURE THING staring us right in the face!

It's true: A safe, viable, long-term solution to the energy crisis ALREADY exists.

In fact, it's maddeningly obvious. It's staring us right in the face!

But it's not solar or wind energy. Not natural gas or geothermal power...

It's not bio-fuel, or another hydro-electric dam...

It's none of the above.

You haven't heard it talked up on CNBC, or seen it praised in Newsweek. It's not the subject of a bunch of heated debate in Congress.

What's more, one promising little company has a virtual lock on it... as both the "top dog" and "first mover" in the space...

Maybe the most amazing thing is, you can invest in it now, cheap, and have the chance to make a fortune!

But let me say this at the outset: What this company offers is NOT a speculative new technology. Nor is it some political hot button or sexy "clean tech" trend.

And that is precisely why your average investor isn't interested -- they're too busy chasing after bright, shiny fads. (Even T. Boone Pickens, a legendarily savvy energy investor, has fallen for it! We might have expected better from him.)

Before you go chasing after some "green" fad too -- you should know why I'm so convinced this small energy company represents a truly historic investment opportunity...

One with all the upside of an alternative energy play, but none of the risk associated with the sector!

You could make some serious money by investing in the stock right now

My name is Andy Cross, and I'm Chief Investment Officer of The Motley Fool, the trusted investor resource that The Economist has called "an ethical oasis."

I am firmly convinced that this could be the investment that pays for your kids' or grandkids' college education... for your retirement... that once-in-a-lifetime trip... or the vacation home you've always wanted.

And remember, I don't see a roadblock in sight!

Unlike most alternative energy companies, this company's solution is already proven and already profitable.

What's more, this little energy company is uniquely positioned to benefit no matter whether we experience a "double dip" recession or don't...

Do you remember how I described it as both a "top dog" and "first mover"? It's true. Though it has not developed any new technology, this company IS a pioneer.

Its CEO -- truly the godfather of the industry -- was the first to develop a special, new kind of contract that guarantees his customers actually spend less on energy. It's called "performance contracting." (I'll explain how it works in just a moment.)

Esteemed consulting firm McKinsey estimates that performance contracting will be worth $520 BILLION by 2020. That means growth of more than 10X in the next nine years...

And all the signs point to this company dominating that huge market. Mark my words...

We're about to witness some truly mind-blowing growth

Just since 2001, this company's revenue has increased 28 times. (And that's organic revenue growth, not just the result of a bunch of acquisitions.)

And it boasts a five-year compound annual sales growth rate of 19%... return on equity of 21%... and even an awe-inspiring $1.2 billion backlog of orders...

Some of the analysts on my team are estimating this company will grow by 21% annually over the next five years. But I think that may actually be a conservative estimate...

Because no matter WHAT happens in the market or whether all the wild hopes for alternative energy are EVER realized, this company's energy solution will be in demand.

By now, you're probably wondering what kind of energy we're talking about...
In the next three to five years, I can realistically see this stock tripling your money. In the longer term, it's got everything I look for in a potential 10-bagger. That is, a stock that makes you 10 times your original investment.

Why?

Not only is this company "well run and sustainable" according to Forbes...

It's already providing its comprehensive energy solution to a stunning number of government clients, as well as some of the globe's most prestigious brand names...

Heck, it's even helping to safeguard the Constitution.

It's the one energy play for the rest of your life!

In 2009, this company won an $800 million contract with the Department of Energy, the largest of its kind in U.S. history, for instance...

And it's recently completed extensive work for the cities of Chicago, San Francisco, Boston, Cincinnati, and San Antonio, and the state of Alaska...

Not to mention universities, school systems, and hospitals across the nation...

Plus federal agencies in Washington, D.C.... Even providing the ultra-sensitive light and temperature controls that keep the original U.S. Constitution, the Bill of Rights, and the Declaration of Independence in a pristine state...

So let me ask that, for just a moment, you forget everything you've ever heard about alternative energy, and consider this...

The cleanest energy is the energy we don't use at all. The cheapest energy is the energy we DON'T use.

The biggest and best thing going in alternative energy is... energy efficiency, plain and simple.

And I mean energy efficiency on a grand scale. Not just light bulbs and boilers but whole buildings, whole cities... the whole country!

The U.S. is already vastly more energy efficient than it was even 20 years ago. Energy efficiency is in fact a dominant long-term trend... and a sure thing.

But you don't have to take my word for it...

Why performance contracting is a win-win

This small energy company devises and installs energy-efficiency measures that reduce customers' energy use. The customer then pays for the project out of their energy-bill savings. It's a win-win.

That's how performance contracting works. But here's the most important thing...

For government entities like public schools and federal agencies, there's no capital outlay.

So even in these times of gutted budgets and spending cuts... national, state and local government entities are still seeking out this company.

In fact, it's the exact same case with this company's commercial and residential clients.

Let me be clear: Because of the innovative way this company contracts its business, budgets cuts and recessions just don't matter.

So no wonder this little company saw its revenue INCREASE SUBSTANTIALLY throughout the Great Recession. It is both riding and leading a massive long-term trend that is only growing... gathering speed as we speak...
The change is coming. It's going to be worth $520 BILLION!

Here's a point about which all serious-minded people can agree: Over the long term, the price of fossil fuels is going to go up.

Here's another: We are years away from the development of an alternative energy source that could actually replace oil or coal. That is, if we EVER find one.

Energy efficiency -- the energy we don't use -- is the only viable long-term solution in existence. It's an inevitability!

So you can see now why I called my fellow analysts' 21%-per-year growth estimates for this company conservative. It's the company best positioned to meet $520 BILLION worth of demand!

Perhaps the most amazing thing is... you can still buy the stock CHEAP because everybody else is still chasing silly "clean, alternative" energy fads.

That's right. The little energy company I've just been telling you about is trading for just 13 times earnings... less than $10 a share!
It's the greatest energy stock that no one is talking about. Well, almost no one...

As usual, the media is caught up with sexier, flash-in-the-pan energy fads... and rehashing old material about peak oil...

And politicians are trying to make good on their big promises about green jobs. Like dogs chasing a bus, they're still barking after solar and wind power...

So most of your fellows, both professional and individual investors, haven't yet caught on to this company's massive potential.

One world-renowned investor HAS been following the story, however. In fact, he is the one who told me about this amazing little energy company. I think you just might recognize his name.

Eight short years ago, I witnessed this investor recommend another historic investment opportunity. One that made hundreds of thousands of dollars, if not millions of dollars, for individual investors like you...
Quality Systems BEFORE it went up 1,815%

In 2003, Tom Gardner -- co-founder of The Motley Fool -- recommended a little-known healthcare stock to subscribers of Motley Fool Stock Advisor.

Healthcare was a hot sector then, just as it is today. So you might think Tom recommended a pharmaceutical company with a patent for a new drug or some hyped-up surgical technology company.

But that's not his style.

The stock Tom recommended was Quality Systems, a small company that makes database software for other healthcare companies. Hardly the world's most exciting product...

Of course the hot shots on Wall Street weren't interested in a piddling little company like that. Neither were the CNBC talking heads. A small record-keeping software company like Quality Systems wasn't anybody's idea of The Next Big Thing.

But Tom saw something that nobody else did. He'd figured out the company's huge potential market and its incredible business model, sized up its smart management, dug deep into its balance sheet...

And you want to know what happened?

Quality Systems became one of the best-performing stocks of the decade. Since the day in 2003 that Tom recommended it to subscribers of Motley Fool Stock Advisor, the stock is up a mind-boggling 1,815%.

In other words, if you'd followed Tom's recommendation and put $10,000 in the stock, you'd be sitting on $191,000 today.

That's a four-year degree from Harvard, Yale, or Princeton (with change leftover)...

That's a Bentley... a villa in Costa Rica...

A year-long luxury cruise around the world...

A charitable donation that gets your name put on the building...

It may sound pie in the sky, but it's true. Tom Gardner's recommendation of Quality Systems -- a "boring," overlooked healthcare stock -- quite literally made fortunes for subscribers of Motley Fool Stock Advisor.

You could say they were bored all the way to the bank.

As one of our subscribers, Mark T. of Burr Ridge, Illinois put it...

"I have made a killing on Quality Systems ($100,000+). I bought it when Tom first recommended it, and I still love this stock. Without Stock Advisor, I never would've known it existed."

Let me level with you: Tom Gardner's recommendation of this small, under-followed energy company strongly reminds me of his Quality Systems pick in 2003...

And that's why I'm urging you to get all the details today in Tom's brand-new FREE report, "The One Energy Play for the Rest of Your Life"... including all the details about this company and how you can get invested.

Then you can decide for yourself whether this massive profit opportunity is one that you're interested in. So in just a moment, I'll tell you how to download the report, instantly.

But first, let me tell you about a few of the other home runs Tom Gardner -- and his brother and co-advisor, David -- have hit for subscribers of Motley Fool Stock Advisor, including...

BorgWarner... up 450%
Netflix... up 743%
Activision Blizzard... up 641%
Marvel (now Walt Disney)... up 1,542%
Amazon.com... up 1,412%
Priceline.com... up 1,920%

In fact, with these two remarkable investor-brothers at the helm, Motley Fool Stock Advisor has earned its subscribers an average of 16.7% per year... for the last 10 years. That's through markets good AND bad.

DID YOU KNOW that if you earn 16.7% per year, your money doubles every four-and-a-half years? It's true.

In fact, a $50,000 nest egg grows to almost $2.5 million over 25 years -- even if you never add another penny.
Right there you have the multimillion-dollar portfolio we all strive for -- and then some. So, how can you get fantastic results like this? Certainly not by chasing the Wall Street herd, or getting your stock tips off cable news...

Frankly, you need an edge... truly great advice... which is why I'm writing to tell you about Motley Fool Stock Advisor today.

Through Motley Fool Stock Advisor and those market-beating returns, Tom and David Gardner have helped thousands of individual investors secure their financial futures.

No wonder Money.com has called David and Tom "Some of the most widely followed stock pickers in the world."

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