With oil over $100 per barrel, we’re likely to see renewed interest in alternative energy, and particularly solar stocks, according to GameChangers Editor, Hilary Kramer. Kramer appeared on the PBS “Nightly Business Report” to discuss the industry and solar stock SatCon Technology Corporation (NASDAQ: SATC).
See transcript below:
TOM HUDSON: The last time oil prices were over $100 a barrel, alternative energy saw lots of interest. We may see it again, according to tonight`s “Street Critique” guest. She`s Hilary Kramer, editor at gamechangerstocks.com and back with us. Always nice to see you Hilary. You like solar energy especially. Why solar?
HILARY KRAMER, EDITOR, GAMECHANGERSTOCKS.COM: Well, it`s all about lower carbon emissions and about being more economical. Once the money is spent and the capital expenditure is there, solar is a cheap way to go for energy.
HUDSON: And you`re looking at one that services the utility sector, Satcon Technology. This was a pick of yours back in October when it was $4.40 per share. It rose to $5.50 before falling off precipitously lately, down around $3.50. What`s the catalyst here?
KRAMER: The catalyst is that it was just a revenues miss. Satcon is growing. They had 238 percent increase in their most recently reported revenue, but $5 million short on revenue in terms of guidance for the first quarter and you have a company that the market just sold off. Wall Street doesn`t like any guidance to be lowered. So you have an opportunity to get into a solar inverter company that is the linchpin, the key around large scale solar utility projects, is the inverter.
HUDSON: With the $2 drop we saw from its most recent high, do you still own it?
KRAMER: Yes, yes. Matter of fact I bought more Satcom because the opportunity is so strong and the growth is here.
HUDSON: We`ve got several viewer questions lined up. We`ll begin with Zoe tonight. Zoe writes, I purchased Radnet a few months ago. Do you still recommend it? RDNT, the ticker symbol on this one. You first mentioned it January 13th. It went from $3.30 up to almost $4 and now is down below that purchase price. Do you still own it? Are you putting new money to work?
KRAMER: I still own Radnet. The key with Radnet is that as an imaging company, they are buying for pennies on the dollar their competitors in this sector. And Radnet has a scale to be able to negotiate with the insurance companies for more reimbursement dollars. And it`s all about scale when it comes to health care, whether it`s pharmaceuticals or X rays and CAT scans.
HUDSON: Another one that we wanted an update on from Aaron. He e- mailed us email@example.com writing you recommended HRZ, Horizon Lines (NYSE: HRZ). Recently it`s settled a price fixing case against it and stopped its dividends. Do you see any stock price potential left? And we`ll see what those two news items have done to the share price of HRZ lately, really taking a move down from almost $6 per share down below $4 per share. Have you gotten stopped out?
KRAMER: No, I stick with the small caps. I don`t have stops on those. It`s high risk, high return. We call it alpha plays but with a lot of volatility. We`re looking for performance. We`re looking for doubles, but we take our chances and in this case, Horizon took a hit with a fine that they paid, but they`re protected because they`re a part of the Jones Act and they have exclusivity for their shipping lanes between the contiguous United States and territories like Puerto Rico and Guam or states like Alaska.
HUDSON: Do you still own all the stocks we mentioned tonight, Hilary?
KRAMER: I own them all, yes, Tom.
HUDSON: You can follow of course all the previous picks on the blog NBR on pbs.org. Or you can email us, firstname.lastname@example.org, lots of ways to follow us of course on Twitter @bizreport and on Facebook/bizrpt/ as well. We`ll feature more questions next Wednesday. Our “Street Critique” guest, it`s Hilary Kramer, gamechangerstocks.com.