​Jeff Kagan: Is Alternative Energy a Good Investment in 2016?

Jeff Kagan |

Which alternative energy, clean energy and solar energy companies will have a good 2016?

This is the fastest growing segment of todays rapidly changing energy industry. That said, it’s important to realize there are plenty of winners and losers in this fast growing space. So while the industry itself is exciting and will continue to grow, understanding the different technologies and companies is key to selecting winners.

As an industry analyst, I now follow the alternative energy and clean energy space just like in wireless, telecom, television, IoT and cybersecurity, which I have been following for decades. I see energy going through a similar and enormous growth and change wave which is reshaping this space. It’s all about long-term transformation and growth.

While this is exciting for investors and customers, we must also realize as the industry shifts from phase one to phase two there will be plenty of new growth opportunities and risks. This is both exciting and confusing. Fortunes will be made and lost depending on the companies and technologies invested in and when.

Alternative Energy Analyst Briefing

As an industry analyst I am contacted by competitors and invited to learn more about them. They do this in hopes that I will talk and write about them. After all, companies want to get on our radar any way they can. The reason they are interested in getting on my radar is simple, increased exposure and credibility.

One reason companies schedule briefings and want me to follow them is that as an analyst I get called by the media on a regular basis for comments on the stories they are writing. I also write columns and give speeches at company and industry meetings, so there are plenty of ways for me to share my thoughts on this industry in general and companies and technologies in particular. And that is what they are looking for.

Alternative Energy and Clean Energy Growth

Generally speaking, companies share their story with industry analysts and the media in order to punch their way onto the radar of investors and customers. The marketplace is very noisy, yet it is very important for every company to be known. This is the same challenge faced by other industries I have followed over the last few decades including wireless, telecom, computers, Internet, cybersecurity, cable TV, IPTV and more.

Getting on the radar is important, as companies in this fast-growing space see an enormous and rapid growth opportunity. Many of them are in the right place at the right time. What they need is to get the word out and become known.

Today, the energy industry is full of smaller companies that investors and customers don’t really know about yet. This growth curve is the same as what has already happened in countless other industries. So it’s important to know which companies are on the growth side of the wave, and which are on the falling side of the same growth wave.

Consolidation Curve Has Begun

The consolidation curve has begun in the energy industry. Companies and technology are moving from phase one to phase two. Over the course of the next decade or two, new leaders and winners will rise to the top. Many of the early leaders may fall. Some you may already know about. Many you don’t, yet.

Which companies and which technologies will be on the growth side of the wave moving forward? Just as important to know is which will be on the falling side of the growth wave. The burning question is simply, how to we determine winners and losers going forward?

Winners in Alternative Energy

The single most asked question is which companies and which technologies will be the winners going forward in alternative energy and clean energy? As always, that’s the million dollar question.

That’s why, going forward, I will continue to get calls from companies wanting to get their messages out to the marketplace. That’s why, looking forward, this new energy area is full of opportunity and risk. That’s why, looking forward, as I find interesting companies and technologies, I will share my thoughts with you on what I learn.

One thing is for sure, this energy story is just starting to pick up steam, and I believe 2016 will be even better than 2015. It will be full of opportunity and risk. So enjoy the holiday season, then get ready for a strong next year.

Equities.com columnist Jeff Kagan is a Wireless Analyst, Telecom Analyst, Industry Analyst and consultant. He shares thoughts on the changing industry, which he's been following for 25 years. He follows what's hot, what's not, why and what's coming next. Email him at jeff@jeffKAGAN.com.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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