Each day on TheStockAdvisors.com, editor Steven Halpern features some of the best and most intriguing ideas from the nation's top newsletter advisors.
        On a regular basis, Halpern publishes special reports highlighting important trends that are being discussed by the leading financial newsletter advisors. TheStockAdvisors.com has just prepared a Special Report on Alternative Energy.
       "Obviously, alternative energy is not a "new" investment theme. However, with oil in triple digits, many advisors now believe the time is right for this sector to be propelled to the forefront. Further, advances in technology now favor continued research and support in developing alternatives," says Halpern.
       "By their very nature, alternative energy stocks are best suited for long-term investing. Investors must also be aware that many of these stocks have already had significant runs. Volatility should be expected, as stocks in this sector often rise and fall along with volatility in oil prices.
       "However, few sectors are as well positioned for those willing to dollar-cost average into long-term positions with the goal of building positions for long-tern gains.
       "Overall, with alterative energy having captured the attention of politicians, corporations, and the media, many advisors believe you should be considering alternative energy stocks as part of your investment portfolio."
       Below are a few excerpts from the Special Report on Alternative Energy prepared by TheStockAdvisors.com. The entire report, featuring all 25 investment newsletter editors, is available, FREE of charge, to Bull & Bear readers by downloading it from Steven Halpern's website, www.TheStockAdvisors.com.

An ETF for Alternative Energy

       "Alternative energy has been among the hottest investment themes of the past few years," says Paul Tracy, editor of the industry leading StreetAuthority Market Advisor, www.streetauthority.com.
       Here, the advisor reviews a recent recommendation for the Market Vectors Global Alternative Energy ETF (NYSE: GEX), an exchange-traded fund that offers broad exposure to several key sub-sectors of the alternative energy industry.
       "There are several key drivers of the alternative energy trend. Consider that as recently as 2002, crude oil was trading below $20 per barrel and natural gas cost less than $2 per million British Thermal Units (BTUs). Now, oil is trading at over $100, while natural gas is trading at more than five times its lows.
       "Naturally, rising prices for key energy commodities spells rising costs for consumers. For the first time in history, drivers have been consistently paying more than $3 for a gallon of gasoline.
       "And electricity produced from natural gas is becoming increasingly expensive. Alternative energies offer a way to cut dependence on fossil fuels and reduce this extreme variability in energy costs.
       "Another pillar of growth is increasing government regulation. The U.S. already controls the emission of pollutants from power plants. Pollutants are regulated using a cap-andtrade system. This system allows power plants polluting above their regulated maximum emissions to buy credits from cleaner plants.
       "Thus, dirtier plants have the choice of buying potentially expensive credits or taking steps to reduce emissions of key pollutants. This system serves as an economic incentive - cleaner plants are able to recoup some of their pollution mitigation costs by selling their excess environmental credits.
       "And this system will become increasingly important as attention turns to carbon dioxide and "greenhouse" gases. On April 2, 2007 the U.S. Supreme Court made a pivotal decision regarding environmental regulation.
       "The nation's highest court ruled that the U.S. Environmental Protection Agency (EPA) acted improperly by refusing to regulate greenhouse gas emissions under the Clean Air Act. It's likely some sort of carbon regulation will eventually become part of U.S. law.
       "The Market Vectors Global Alternative Energy ETF offers broad exposure to alternative energy. The fund's top holdings include solar plays such as First Solar, SolarWorld and Suntech.
       "First Solar is the leader in the so-called thin-film solar market - thin film solar cells use cadmium telluride, a lower-cost raw material than the polysilicon used by most solar firms.
       "Polysilicon supplies are extremely tight right now due to strong demand, and this has sent prices soaring over the past two years. This gives FSLR a key cost advantage over the competition.
       "GEX also includes significant exposure to the global wind market with holdings such as Denmark's Vestas Wind Systems and Spain's Gamesa. Vestas is the world's leading manufacturer of wind turbines, with more than a one-third share of the global wind market.
       "In addition to solar and wind, GEX includes smaller positions covering ethanol and biofuels, energy efficiency and geothermal power. By providing investors with diversified exposure to the alternative energy business, GEX is a smart way to invest in this booming market. My staff and I think GEX looks like a solid 'Buy' below $55."

Inner Circle's Small Cap Solar Stocks

       In his specialized trading service, Inner Circle, www.neilsinnercircle.com, advisor Neil George includes a package of small cap, speculative stocks focused on alternative energy.
       He explains, "Those who think solar is dead, Al Gore will be running millions of dollars' worth print and television ads claiming otherwise. And you can't save the planet without solar energy.
       "Switzerland-based SES Solar (OTC: SESI) is the first of our small collection of alternative energy companies, with a focus on solar technologies.
       "The company specializes in making rooftop arrays and photovoltaic panels that are larger than the standard 3-by-3. Another specialty is a refinement of the connectors used to hook multiple panels together; this arrangement means less energy is lost from panel to generator.
       "This means easier, cheaper installation of solar products. The company and its products will be more and more in vogue as awareness of global warming increases, and we're set to cash in.
       "SES Solar will experience a wave of customers, would-be industrial partners and investors seeking to cash in on alternative energy in a global-warming focused market.
       "Meanwhile, we also recommend purchase of Yingli Green Energy (NYSE: YGE). China is focused on cleaning up its air and water. The Asian giant's focus on environmental concerns means a great deal of attention for alternative energy companies.
       "China-based Yingli is a fully integrated solar company that designs and manufactures photovoltaic cells and designs and installs arrays. It's well positioned to capitalize on the continued growth for renewable energy in China, but it's also making significant inroads into Europe.
       "China continues to focus on cleaning up its air and water as well as addressing other environmental concerns. Much of this effort involves alternative energy companies. And the race is on to complete work ahead of the Summer Olympics.
       "We also rate AeroVironment (Nasdaq: AVAV) a buy. The company's green tech division may get a boost from its Architectural Wind system, which provides renewable energy generation on building rooftops.
       "The product has just been awarded three utility patents and six design patents from the US Patent and Trademark Office, along with 12 European design patents relating to new approaches to renewable energy generation on buildings.
       "These small, modular wind turbines provide an attractive clean-energy generating technology for use in both urban and suburban environments.
       "AeroVironment - working with its development partner, Protonex Technology, a leading provider of advanced fuel-cell power systems - recently announced another successful record flight on a small, unmanned aerial vehicle (UAV) utilizing a highly advanced fuel cell system from Protonex.
       "AeroVironment's Puma UAV system broke its previous flight record of more than seven hours and flew continuously for more than nine hours.
       "Finally, we recommend WorldWater & Solar Technologies (Nasdaq: WWAT). Solar is still the big green sector around the world, and this company has exposure on almost every continent.
       "The latest annual report is in, and here are the numbers: sales are up, losses are down, net loss is down and WorldWater & Solar installed 2.6 megawatts (MW) of power in 2007 versus 2.4 MW in 06 and 275 kilowatts in 2005.
       "WorldWater & Solar has already landed some good-sized deals moving forward and hasn't realized any of the financial leverage from acquiring Entech late in 2006. The company is gaining green tech credentials just at the right time. WorldWater & Solar Technologies is a buy."

"ChangeWaves" for Solar:
Suntech and SunPower

       "Our ChangeWave Alliance - a survey of thousands of investors and industry professionals - has long tracked the alternative energy trend," notes Toby Smith, editor of Change- Wave Investing, www.changewave.com. "And in it's most-recent survey of industry respondents, solar was cited as having the most-rapid economic growth in the past year and, more importantly, for the next 12 to 24 months.
       In this survey, solar by far topped all other technologies and was the only industry to show momentum going forward. And, since the previous survey in 2007, solar was also the only technology moving closer to becoming commercially competitive with conventional energy sources.
       This means the next big challenge for the solar energy industry is the scaling of facilities for mass production at the gigawatt level. The next generation of leaders will be those companies that are best equipped to leverage the latest innovations in materials research through manufacturing know-how.
       "Suntech Power (NYSE: STP) announced that it is taking a minority interest in Nitol Solar, an independent polysilicon producer, for up to $100 million. This relationship is not new. STP entered into a multi-year supply agreement with Nitol in August 2007 for the supply of polysilicon to STP from 2009 to 2015.
       "Suntech's silicon supply deals will diminish exposure to spot-market purchases, improving visibility and potentially raising gross margins.
       "Suntech will also offer $425 million in convertible senior notes in a private offering. The company expects to use about $300 million of the offering's net proceeds for upstream supplies and the rest for production capacity expansion and new technology commercialization.
       "Suntech's shares are down 67% from their 52-week high and drastically oversold. At today's price, STP's fundamentals - particularly its scale of production and industry leadership - are in no way fully reflected. Of all our solar plays, Suntech is the best buy today.
       "Meanwhile, we have been reviewing the newest catalyst for the booming solar industry. Southern California Edison, one of California's 'Big 3' utilities, plans to install 50 megawatts (MW) of solar energy per year for five years on commercial rooftops for a 250MW total commitment. This represents enough electricity to generate power for 162,000 homes.
       "While California has always paved the way for solar in the United States, this commitment is larger and more concrete than previous projects. In fact, the 250MW is more than the United States' entire production of solar cells in 2006 and will generate as much electricity as a small coal-fired power plant -- with no greenhouse gas emissions.
       "Among the solar players in our portfolio, SunPower (Nasdaq: SPWR) is in the best position to gain from this news. The California-based company has set up an extensive dealer network in the state and has its own installations services arm, formerly known as PowerLight, which concentrates on commercial installations.
       "When you think about all of the untapped rooftops basking in the sun every day in California, and much of the rest of this country, it's easy to dream about the day when a million buildings - commercial and residential - will be covered with solar panels generating clean power from an unlimited 'fuel' source.
       "With oil at $100, solar is already nearing grid-parity - the point at which the economics of solar becomes a no-brainer - in places like green-oriented California.
       "In this case, Edison will lease 65 million square feet of warehouse rooftop space from building owners. The utility will contract for the installation of the arrays and will retain ownership of the solar systems. The project, once approved, will be financed by a hike in utility rates.
       "The beauty of all of this is that the solar energy will be generated right where it's needed and Edison is taking advantage of unused rooftop real estate. The alternative approach is to secure a big plot of land in a remote area and then build transmission lines to carry the power to areas of rising demand.
       "The impact of Edison's commitment will not only affect SunPower and Suntech Holdings but will radiate out to other major California utilities which also face a mandate to obtain 20% of their electricity from renewable sources by 2010 and 33% by 2020. California's global warming law requires the state's greenhouse gas emissions to be rolled back to 1990 levels by 2020.
       "By raising the stakes, Edison's move will undoubtedly spur demand in other states, too, which, in turn, will propel sharp increases in the production of solar cells and all of the materials that are required to make and install them. Now is a great time to start or add to any positions in SunPower.

Canadian Solar Speculation

       "Timminco (TSX: TIM), headquartered in Canada, produces specialty metals; its results have been lackluster - in fact, it has consistently recorded losses," notes growth expert Harry Domash in Winning Investing, www.winninginvesting.com.
       "However, Timminco has developed a new product, upgraded metallurgical silicon (UMS), which can be used to make solar cells in place of solar grade polysilicon, the current industry standard, for roughly half the price.
       "The viability of Timminco's product was unknown until last month, when French firm Q-Cells, the world's largest solar cell maker, ordered production quantities of UMS. Timminco said it would immediately begin shipping to Q-Cells.
       "Timminco's 2007 sales totaled $172 million. But the solar cell materials market is measured in billions. Timminco is listed on the Toronto exchange. If you can't trade Toronto stocks, you can buy it using the Pink Sheet ticker TIMNF. If you buy that way, be sure to specify a limit (maximum) price."

Carbon Fiber Fuels Hexcel

       "Despite the recent economic slowdown, Hexcel (NYSE: HXL) is seeing its market for carbon-fiber-based aerospace products and parts boom," says energy expert Elliott Gue. The contributing editor to Personal Finance, www.pfnewsletter.com, explains, "And in addition to growing aerospace demand, the firm's lightweight carbon-fiber products are finding growing markets in others areas such as wind power and nuclear power." Here is his review.
       "Hexcel makes lightweight carbon-fiber parts used on modern aircraft designs. New aircraft designs such as the 787 incorporate far higher carbon fiber content than older planes, so Hexcel is becoming an increasingly important supplier.
       "The aerospace demand cycle isn't directly tied to demand for air travel. Airlines and aircraft leasing firms typically plan their purchases of new planes many years in advance; the aerospace cycle is highly visible and longer-term in nature.
       "Currently, demand for modern fuel-efficient aircraft such as the Boeing 787 Dreamliner is booming. Hexcel recently reported fourth quarter results and offered management's outlook for the year ahead. Just over 50% of the company's total sales come from the commercial aerospace market.
       "The market is booming: Sales surged more than 21% compared to the fourth quarter of 2006 in constant dollar terms. Hexcel sells to both Airbus and Boeing, which have a combined backlog of nearly 7,000 planes that have been ordered but not yet delivered.
       "At current production rates it'll take at least seven years to build all those planes. These are firm orders; even if the economy continues to slow, the aircraft manufacturers will be busy filling orders they've already taken. This spells a steady stream of business for Hexcel.
       "Consider that only 11% of Boeing's order book is from US carriers. Strong demand from emerging markets has been the growth driver for aerospace in recent years. The pace of orders isn't likely to slow appreciably due to a US economic slowdown.
       "There's a global shortage of aircraft-certified carbon-fiber producers globally; it takes two to three years after a new carbon-fiber plant is built to certify the product as aerospace quality. This complex certification process limits potential competition for Hexcel.
       "And the Hexcel story is far more than just airplanes. Industrial sales make up about a quarter of Hexcel's business. The growth driver in this market is wind power. Sales of carbon-fiber components for wind turbines soared more than 15% last year and could actually accelerate in 2008 as Hexcel opens new carbon-fiber production facilities in China and Europe.
       "Hexcel also recently announced a new market for industrial demand: nuclear power. The company won a contract with US enrichment giant USEC for carbon-fiber rods used in the enrichment process. Management believes that this order could eventually offer $40 million in annual sales."

American Superconductor:
Power Grid Power Play

       "With oil hitting $100, and voters increasingly attuned in this political season to the need for clean and renewable fuels, the alternative energy industry is ripe for investment," says David Sandell.
       The contributing editor to Stephen Leeb's The Complete Investor, www.completeinvestor.com, explains, "American Superconductor (Nasdaq: AMSC) is an energy tech leader that helps the electric grid to function better." Here, he looks at the latest addition to their "Fast Track" portfolio."
       "American Superconductor designs and sells products geared to utilities, industrial companies, and wind energy developers. Its offers are designed to help these customers to generate and deliver electrical power more efficiently, cleanly, and reliably.
       "The company sells power converters to utilities and industrial customers. The point of these converters is to regulate voltage, thereby improving the performance of the electric grid - making it more efficient (and energy-conserving) as well as reliable.
       "The company is teaming up with the Department of Homeland Security as well as with Con Edison on a grid upgrade for New York City that would increase capacity and suppress power surges.
       "In 2007, beefing up this division, American Superconductor made two significant acquisitions. It bought Windtec, a company that specializes in wind energy - licensing proprietary wind turbine designs, training workers to maintain turbines, and supplying converter and control systems to wind farms.
       "This past year, Windtec has worked to boost its presence in China, and some sizable potential contracts in that country are likely to come through.
       "Somewhat ironically, the company's Superconductor Wires, after which it is named, hasn't yet been profitable - but we think the potential is enormous. The division makes high-temperature superconductor (HTS) wires used in power cables, bit motors, and even magnetically levitated trains.
       "These wires can carry around 150 times more power than traditional copper wires. Even more important, though, there is almost no energy leakage.
       "While not yet turning a profit, American Superconductor s in good financial shape, with no debt and a lot of cash. Revenues have risen from $56 million in 2006 to around $100-$110 in 2007 and are expected to expand sharply in 2008.
       "About half of revenues are from abroad (though concentrated in a few customers), and the company recently formed a new division to meet rising demand from Asia. We see AMSC as a leading, if risky, play on wind energy and energy efficiency."

Zoltek: Wind Power Profits

       "Zoltek (Nasdaq: ZOLT) produces carbon fiber for use in wind turbine blades," notes Tom Bishop, a long-standing growth stock expert and editor of BI Research, www.biresearch.com.
       "The stock is a great way to play the surge in wind energy as the US strives to come up with ways to reduce our dependence on and become more energy independent in a way least harmful to the environment." Here is the advisor's review.
       "A blade that is twice as long can generate 4 times the electrical power, and other traditional materials are too heavy for such lengths. That's the cornerstone for soaring demand that is driving the case for this company currently.
       "In addition to wind turbine blades, the firm's carbon fiber is used in aircraft brakes, concrete reinforcement, structural automobile parts and offshore drilling platform anchor cables.
       "Looking ahead, in order for auto companies to meet tougher gas mileage standards set for them they will need to go lite and incorporate more carbon fiber. Indeed Zoltek anticipates this will be the next big application for their fiber down the road.
       "One pending application is for 7,000 -10,000 foot long tethers to anchor oil platforms to the ocean floor, etc. (steel cables are just too heavy at that length). This is important as oil drilling inevitably moves further offshore into deeper waters (for example, the recent Petrobras discovery). Imagine how much carbon fiber this type of tether will use.
       "Zoltek didn't hit its mark in the December quarter reporting $.14 vs. estimates of $.25, leading to some serious carnage, more than one might expect given it is sticking to it 2008 revenue forecast of 50% growth.
       "This would imply about $225 million for this year and the consensus had crept up to $246. It has since come back to $232. The EPS consensus had been $1.55 for this year and has been reduced more than I would have expected to $1.25, still not bad vs. $.76 last year ... 64% growth!
       "The shares of this carbon fiber maker have been sold down to a p/e of 20. The stock rates high on sex appeal which has to be factored in and - in theory - should not be much affected by any potential recession. I rate the stock a buy for those who are willing to focus on the long term."

Consol Energy: A "Solid Play" on Coal

       "Green investing and clean energy may be the politically-correct topic at cocktail parties, but coal is the economically-correct vehicle for investors," says Ronald Rowland and Brandon Clay.
       The editors of All Star Investor, www.allstarinvestor.com, explain, "Coal has been an energy source for millennia - and is still the number #1 source of energy for electric power plants in the world." And, they add, "One of the best places to invest in coal is Consol Energy (NYSE: CNX).
       "Prehistoric Chinese are said to have used coal for heating. According to Roman historians, Britain burned coal in the first century. Throughout history, coal has been the primary source of heat in homes.
       "Rapidly industrializing nations like China are still dependent upon coal for energy. Overall global consumption has not diminished either. Coal fuels 48% of electricity plant generators.
       "And the trend is heading upward - probably for the next 30 years. Despite the deafening rhetoric, coal is not going away anytime soon. Investors should take notice.
       "Consol Energy is a growing global leader in coal production and distribution. Compared to larger coal companies, Consol has kept expenses low.
       "Their profit margins are running at 7.5% versus Peabody Energy at 5.8% and Westmoreland Coal at -4.3%. Moreover, their diversified offering in oil, timber, and energy services continues to deliver results to their growing bottom line.
       "Consol's prospects look good too. Because they own 70% of their coal reserves they are less hampered by mining acquisition costs. Management is taking advantage of global demand. Growing exports at over 18% a year, Consol is well positioned for continued growth in the international energy market.
       "Technically, the stock's chart suggests investors are starting to take notice. CNX has broken through overhead resistance and there does not appear to be anything else to stop it. Natural resources are near the top of our rankings right now.
       "We're not promising a meteoric rise, but the fundamentals support continued appreciation in the sector. Consol will be a great place to grab those gains if they happen. For an economically solid play on coal and natural resources, go with CNX."

Cameco: A Contrary 'Gem' for Value Investors

       "I love buying great companies near the bottom of the barrel," says resources expert Eric Roseman, who has added Canadian-based Cameco Corp. (NYSE: CCJ) to his buy list. The edtior of The Commodity Trend Alert, www.commoditytrendalert.com, explains, "Cameco, the world's largest uranium concern, is a gem, right in the middle of a long-term earnings boom amid high energy prices and a massive backlog of orders for its raw material used to feed nuclear reactors."
       "I'm drawn to quality at a distressed price, for whatever reason, such as earnings-related surprises, management changes, special one-time write-downs, etc. Most of our recommendations are founded on exactly these principles of value-contrarian investing.
       "Cameco Corporation was a $60 stock 12 months ago, but because of production bottlenecks caused by a major flood at one of its biggest mines (Cigar Lake) in late 2006, the stock suffered a beating and has bounced all over the map lately.
       "Yet, for years, Cameco was Canada's uranium darling and I always wanted to own this gem. But the problem was, Cameco always fetched a high price, and I hate paying top dollar - even for a great business.
       "In October 2006, Cameco announced a major flood at Cigar Lake, Saskatchewan would dent production forecasts. The stock immediately went into a tailspin, but managed to recover until sub-prime fears gripped global markets again last November. Basically, since late 2006, Cameco shareholders have gone nowhere, even as earnings recover.
       "Cameco is the 'Mother' of uranium companies, a blue-chip darling that's currently out of favor but harbors great potential over the next few years.
       "At this price, I believe the stock is a double over the next 12-24 months as energy prices continue to rise, forcing governments and companies alike to use cleaner-burning alternatives to oil, gas and coal. The Chinese have already announced several hundred billion dollar projects to construct nuclear energy facilities.
       "Cameco recently reported 2007 full-year net earnings of $603 million ($1.63 per share) - 120% higher than in 2006 due to improved results in the uranium business. Adjusted net earnings for the fourth quarter were 60% higher than in 2006 due to higher earnings in the uranium, electricity and its gold businesses. Yes, we get a little gold play with Cameco called Centerra Gold. That's a nice kicker, too.
       "I think uranium prices, which are down 45% from their highs of $136 last year, will recover. The trend for cleaner-burning fuels is a major secular trend that's unstoppable. Uranium supplies are currently abundant; at some point, however, uranium prices will rally and break to new highs.
       "Another point worth noting is that the higher oil prices go, the greater the potential for a sustained uranium bull market. Oil prices might slide to the mid-$70s this year amid a U.S. and international slowdown, but foreign markets are consuming a greater share of raw materials as the growth engine abroad is far more sustainable.
       "Uranium is the fuel of the future, while crude oil will be too expensive to refine over the next several decades. Uranium is here to stay and the world, including China, wants their share. Cameco Corporation is a buy up to $35."

Suncor: A Bright Outlook for Oil Sands

       "The best thing to do in this market volatility is take a deep breath and say, 'This too shall pass'," says Neil Macneale, who buys only stock split candidates in 2-for-1 newsletter, www.2-for-1.com.
       "In general, getting out of the stock market at this time would be exactly the wrong thing to do. If 'buy low, sell high' means anything, we should be buying stocks now with whatever cash we can find. Otherwise, the ship will sail without us. Of course, given the exact market bottom is not knowable until after the fact.
       "Indeed, new purchases may not be perfectly timed, but we continue to believe that it will be better than not buying at all. And because our policy with our 2-for-1 portfolio is to buy something every month, at least one of our purchases over the next several months will be very close to perfectly timed.
       "The pace of split announcements has tapered way off, as seems to happen whenever there is market uncertainty. One has to think those boards of directors who buck the trend and go ahead and announce a split anyway must be very confident in their companies' ability to perform over the next few years.
       "Of the five companies announcing splits in February, Suncor Energy (NYSE: SU) is my pick for our portfolio. Suncor is a Canadian company trading on both the Toronto and New York stock exchanges. SU is an integrated oil and gas company with production, transportation, refining and retailing operations.
       "But the big story is the success it's having in the oil sands business where others are still struggling. It is actually producing 250,000 barrels of crude per day from its oil sands operations in Alberta. Reserves are huge and extraction technology is improving, so the future looks good indeed."

Encana: Buyback Letter Bets on Canadian Oil Sands

       Gordon Pape, a top authority on Canadian stocks and trusts, has just returned Penn West Energy Trust (NYSE: PWE) - the largest of the conventional oil and gas trusts - to his buy list.
       The editor of Internet Wealth Builder, www.buildingwealth.ca, explains, "Given the high yield of 14.3%, I suggest Penn West is a buy at this level despite the risks and uncertainties surrounding the trust."
       "Penn West, with a market cap of almost $10 billion, has been aggressively expanding through acquisitions in recent months. On Jan. 10, it announced the completion of a deal to purchase Vault Energy Trust and one day later it finalized the much bigger acquisition of Canetic Resources Trust.
       "Both these deals are expected to be accretive to shareholders, however investors are keeping a close watch on the integration process. Surprisingly, virtually all of Canetic's senior executives have been kept on which has raised questions about cost reduction synergies.
       "With Canetic in the fold, Penn West expects production this year of between 200,000 and 210,000 boe/d (barrels of oil equivalent per day). Of that, 42% is natural gas, 39% is light and medium oil, 14% is conventional heavy oil, and 5% is natural gas liquids. The trust has proved plus probable reserves of 800 million boe and a reserve life index of 11 years.
       "Penn West has two pilot projects underway which could increase its profitability significantly in the coming years. One is a CO2 enhanced recovery operation near Weyburn, Saskatchewan which involves pumping carbon dioxide into conventional oil fields.
       "The process can add 10% to 15% to production yields. If it can be made economically viable, it also offers a possible solution to the high CO2 emissions from Oil Sands production.
       "The other project of special interest is the company's horizontal drilling program in the Seal - Peace River district of the Oil Sands, where it has extensive holdings. In that region, the sands are so far beneath the surface (2,000 feet or more) that the oil exists in liquid form, not the messy gunk that producers such as Suncor must deal with.
       "Penn West is producing a modest 4,000 bbls/d now from this operation but if it is successful they expect to double or triple that within a few years. Potential reserves in the area are put at between 6 billion and 7 billion barrels.
       "Penn West will release fourth-quarter and year-end results on Feb. 21. In the third quarter, cash flow fell 5% year-over-year to $347 million ($1.43 per unit, fully diluted), although it was up 13% year-to-date at that point. Net income for the first three quarters was well down from the previous year due to a tax provision booked in the second quarter.
       "The shares pay a monthly distribution of 34c ($4.08 annualized) for a yield of 14.3% at the current price. There is always a risk that this could be cut, although Penn West's record has been good in that regard so far.
       "If there is to be a distribution cut, it would likely be announced at the same time as the 2007 results are released so you may wish to hold off until after the Thursday announcement before making a purchase.
       "Of course, if the financials are good and the distribution is maintained, the share price will likely rise - that's the chance you take. If you want to hedge your bets, buy half your desired position now and the rest after the financials are released.
       "Penn West's distributions are fully taxable, so if possible I recommend that Canadian members hold them in a registered plan. For U.S. residents, the trust says the payments are qualified dividends, eligible for the low 15% tax rate. We rate the trust a buy."

Sasol: Global Lead in
Coal-to-Liquids Technology

       "The Financial Times published a report on the state of the Oryx gas-to-liquids (GTL) plant in Qatar, a pioneering effort to produce alternative fuels that was built and operated by Sasol (NYSE: SSL), a stock on our recommended list," notes Bill Martin.
       The editor of BullMarket.com explains, "The plant opened last year, which was a significant accomplishment for the company after several years of construction and development. Unfortunately, it isn't yet running at full capacity and most likely won't until the second half of this year, at the earliest, the paper reported.
       "According to the FT, technical problems have dogged the plant. We've never doubted the difficulties of turning GTL technology into a viable business, but we are still of the opinion that the long-term trends that created interest in the technology haven't changed.
       "Demand for energy is rising while the supply that can easily be recovered has already been found. A desire for energy independence on the part of consuming nations also drives interest in alternative fuel sources, as does the movement for greener energy sources.
       "All of which adds up to continued opportunities for Sasol in our view. Besides being a pioneer in the GTL industry, Sasol also has a strong presence in the chemicals industry.
       "At the core of the company is a coal-to-liquids (CTL) process. The company is the #1 maker of synthesis fuels and chemicals using the leading Fischer-Tropsch (FT) process. A third of South Africa's oil products are FT-based, and Sasol is also the major supplier of the country's chemicals.
       "Sasol's coal-to-liquids business, along with other operations, recorded nearly $2.5 billion in earnings for its most-recent fiscal year, and generated a record $14 billion in sales.
       "For the last six months of 2007, Sasol posted a net operating profit increase of 15% to ~$1.14 billion (14 billion rand), or ~$1.88 a share at the then current exchange rates, compared with ~$1.60 a share for the same period a year ago.
       "Returning to its Oryx plant in Qatar, Sasol noted in its earnings release that the plant produced an average of 9,000 barrels per day, so that figure as reported by the FT wasn't really news. The plant is supposed to be able to produce 33,000 barrels a day, and Sasol hopes to expand it to 100,000 barrels per day capacity.
       "But first the company has to install additional filters, because particulates generated as part of the production process were found to be contaminating the fuel. When the filters are installed, which is not expected to be completed until the end of Q3, the plant is expected to be able to produce at close to full capacity.
       "One thing to keep in mind with Sasol is that even though it is essentially an alternative oil and chemical play, the stock does tend to trade in relation to crude oil. So if some of the predictions we've seen that crude prices will start to drop, the stock could trend lower.
       "However, right now, oil shows no signs of slipping in price. The company has been an excellent performer for the Recommended List, returning nearly 165% in a little more than three years. With crude prices still elevated, we continue to think Sasol is a solid stock to keep in a portfolio."
       Editor's Note: As always, Steven Halpern emphasizes that no investor should act simply on the information in these report. These articles are meant as general investment advice for all readers; they do not take into account any one reader's personal financial situation.
       As such, the advice in this report is meant only to supplement your own research and advice from your personal financial advisors. Most importantly, any decisions you make must be considered within the perspective of your own investment time horizons and your own personal risk profile.
        Bull & Bear readers can download Steven Halpern's Special Report, Alternative Energy, FREE of charge, at www.TheStockAdvisors.com.