Clear Edge Power, investment question to the oracle..

[roydog007]

Looking at some future investments for a relative. This company isn't public yet but it looks interesting ? Any thoughts ? Sorry can't add a link from my cell yet..

[moshe_levy]

Roy-

 

What makes you think they're going public soon?

 

-MKL

[roydog007]

One of the websites I read mentioned that, don't really know anything about the company or the industry ? I'm wondering if they did would it be a worthy investment ?

[moshe_levy]

I don't know. I haven't invested in the stock market in years. Obviously I am in the camp that believes in the future of clean or "green" energy, for what it's worth....

 

-MKL

[Patallaire]

So, you know nothing about the company, you know nothing about the industry and you ask here if it is a good investment! My opinion is that if you know nothing you should not invest, it would be more like a gamble than than investment. There are plenty of companies that have a plethora of information about them out there, there are mutual funds, which when invested in, broaden your diversification, there are drip plans that allow periodic, systematic investments. If we were discussing this, I might suggest that approach. However, you have not even mentioned why you might be investing in this company, other than you think it might have some upside potential. How does it fit into your overall financial plan? What is the compelling reason to own it, what does it add to your mix. What do you expect from it, what disciplines will you put in place on the sell orders on the upside and the downside? This approach to investing is similar to the bar room approach, that is you could go into any bar and get stock advise, it so permeated the late 90s and the tech boom. Be careful, it does not sound like you know what or why you might be doing this other than strangers opinions. So, since I am a stranger, you have my opinion!

[roydog007]

Thanks for the opinion, Still doing some research I do think this technology has a possible future. Sempra energy has invested in the company and they just picked up a 500 million dollar contract to supply and Australian company. The stock broker that has been dealing with the family for many years will have the final say on it. I was considering having him keep an eye on this company. I would like to get some more info on it though before mentioning it to him.

[RonStewart]

Pat is 100% correct. His opening rhetorical statement is the key.

 

I worked as a technologist for ten years for a company that had some legitimate goals in the alternative energy field. We achieved nothing on that front. We did develop two unrelated technologies that were mildly successful commercially, but we sold them off for a pittance to focus on the brass ring. We took a lot of investors' money and paid the chairman and CEO a combined 1.5 million a year, with essentially no income and millions in expenditures. We had very nice booths at trade shows, and very convincing brochures. I honestly believe that when I quit, the other members of the engineering staff were really trying to make the technology work, but I don't think senior managers were anymore.

 

I have been out of there for eight years. The CEO and chairman are the only two remaining employees, other than a part-time accountant. And yet, just four months ago they announced that Virgin Australia was looking to invest in the fuel for its jets. Short of wood pellets, there is no less suitable fuel for aviation - the stuff is denser than water and has less energy density than bunker C, has a short shelf life, has temperature stability issues and reacts with metals.

 

Virgin makes this announcement to seem like they are searching for green alternatives. Announcements of interest, joint ventures and the like are just there to sucker unsophisticated "investors."

 

Any money you put into a company or industry you don't fully understand should be money that you can afford to lose completely.

 

Newspaper article 1; article 2.

[Quinn]

Is this a green industry that could exist without federal dollars? I have a feeling that subsidy and grant money may start drying up even more after the next election cycle.

 

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[roydog007]

Not sure about federal dollars ? Here's some more info on the company / technology :

 

http://www.clearedgepower.com/prospective-partners/prospective-partners#.TwxtcmOEk8k.facebook

 

http://www.nasdaq.com/aspx/company-news-story.aspx?storyid=20120110-00567

[Traveler1]

Is this a green industry that could exist without federal dollars? I have a feeling that subsidy and grant money may start drying up even more after the next election cycle.

 

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It seems that their biggest (maybe only) customer right now is in Germany/Austria. Alternative energy sources there are heavily subsidized, but they have pretty much reached the limit people will tolerate given the scenic problems with wind and most solar technologies. It's become a "not in my back yard" issue. This combined with the financial problems governments there are facing makes Clear Edge's customer something they may not be bragging about in 12 months.