3 Shocking Energy Trends That Should Scare Investors

These figures potentially have broader market implications

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3 Shocking Energy Trends That Should Scare Investors

Now, we have to consider that these are deliveries, not raw demand. So the phenomenon takes into account the general trend that gas stations are stockpiling much less than they used to — likely because margins are so tight and there isn’t a lot of cash on hand to tie up in inventories. Stations are not in the storage business at all these days.

But it’s hard to blame everything on a drop in inventories alone. In November 1983, gasoline deliveries were 51.1 thousand gallons per day. In November 2010, the total was 42.8 thousand gallons daily. Even more disturbing? Just a year later, in November 2011, they were 30.9 thousand gallons.

No Leaders in Alternative Energy

Energy isn’t all about fossil fuels, cars and broad demand. So-called “green collar” jobs are part of what should be an emerging industry as alternative energy gains popularity and as Americans move toward cleaner sources of power.

Except there’s no money in green energy. So companies are going under and jobs are being eliminated, not added.

Take First Solar (NASDAQ:FSLR), the biggest U.S. solar company, which ousted its chief executive officer in October and still is seeking a replacement. Few people want the job, since FSLR stock has gone from over $310 per share in 2008 to a mere $40 right now. Earnings per share have fallen from $7.68 in 2010 to $5.80 in 2011 to a projected $3.93 in 2012. Not good for the heavyweight of U.S. solar.

Wind isn’t much better. At Vestas Wind Systems (PINK:VWDRY), the largest turbine maker, the chairman and finance director are leaving after the company cut sales forecasts twice in three months.

If there is trouble filling jobs in the corner office, that’s not very inspiring for rank-and-file employees.

Throw in the bankruptcy of Solyndra LLC, which left the U.S. government responsible for $527 million in debt, and things are ugly in alternative energy.

Just consider this telling quote from an alternative energy headhunter, trying to find leaders for these struggling companies:

“It’s becoming significantly more difficult to attract people into this market,” said a clean technology recruiter at Korn/Ferry International. “In my 15 years, this is probably the most difficult time to recruit.”

Jeff Reeves is the editor of InvestorPlace.com. Write him at editor@investorplace.com, follow him on Twitter via @JeffReevesIP and become a fan of InvestorPlace on Facebook. As of this writing, he did not own a position in any of the aforementioned stocks.


Article printed from InvestorPlace Media, http://investorplace.com/2012/02/3-shocking-energy-trends-that-should-scare-investors/.

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