Alternative Energy Penny Stocks

Two of the most innovative yet controversial topics when it comes to investing are penny stocks and alternative energy. There are companies who offer alternative energy penny stocks that some investors are choosing with the hope that the stock will rise in value. First it helps to understand more about penny stocks. These stocks are traded for a low cost, usually under $5 and often even under $1. Penny stocks are traded through pink sheets and the OTCBB over the counter. These stocks are often offered by start up and small companies.

Investors who enjoy risk taking may choose penny stocks because they believe the company will gain value, which means the stock will gain value. It can always go the other way as well. One disadvantage of penny stocks, besides their unpredictability, is that many companies offering penny stocks don’t have much established information about their company or their performance so investors can’t go by past history. If you decide to invest in penny stocks it is wise to have more conservative investments as part of your portfolio as well.

Alternative energy penny stocks are appealing because alternative energy and eco-friendliness is big news these days. There are hybrid and electric vehicles and power systems that operate via solar power, wind power, and even water power. This category also applies to alternative types of fuel such as ethanol and palm oil which has a low carbon output. With the environment in the shape it’s in and the rapidly dwindling fossil fuels, renewable low carbon fuel is a good thing.

So if you want to invest in this type of stock, you should start by doing some research on companies who offer alternative energy of some sort. This could be companies who make solar panels, windmills or electric cars. There are so many different options it is very important to study up on alternative energy. You can use a broker to trade penny stocks or do it yourself through an online brokerage. A broker may be able to help you pinpoint promising alternative energy companies. Some brokers simply execute trades, while others offer advice to their clients. The fees for a broker will vary depending on their services and various other factors.

There are no guarantees when it comes to any kind of investment. Some are low risk, some are moderate risk and some are high risk — like penny stocks. High risk investments can lead to big profits or big losses in some cases. However trends point to alternative energy as something that is only going to grow over time. For homeowners, alternative energy can help lower utility bills while helping the environment, and for vehicle owners this type of energy can reduce carbon emissions and help save on the cost of gas. These are all things to think about when considering buying and selling alternative energy penny stocks.

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