Green exchange. Stock Market risk equals future cash

The majority of stockholders are not seeing a return on their investments. In fact, the stock market is sending many companies and investors into a tailspin by setting record lows at the Exchange. So how is the current state of the economy and the Stock Market affecting green companies?

The current recession has not been good to the future of green companies. With margins down, companies are having a hard time finding room in their budgets for green research and development as well as alternative energy products. According to a US News Report, SunPower and SunTech, solar energy companies, have announced job cuts while VeraSun has filed for bankruptcy. The news is not surprising considering that a majority of US companies are in the same position.

Additionally, big time investors and the government are pulling back on investments that led the charge for an alternative energy boom during the past few years. The same US News Report announced that T.Boone Pickens, who has been a major financial supporter of alternative wind energy, is now cutting back on his investments. The profit incentive is simply not what it used to be. Hopefully, the stimulus package, which has promised green jobs and innovations, will keep alternative energy creators and green companies afloat.

It seems green companies are in a situation that has become all too common during this economic downturn; no one is free from the economic impact. With strong management and planning, however, viable green companies that promise to make an impact on the environment and provide profit incentives will most likely survive. With that being said, investors need to be able to discern the strong from the weak.

One strong bet is to go with funds that back more than a few small green companies. Steven Goldberg, a stock analyst and columnist from Kiplinger.com, suggests Green Growth and Green Solutions. Goldberg assures investors of the quality of the firm’s management and ability to locate promising companies. Obviously, no company is completely immune of a freefall, but I agree with Goldberg’s findings. Both firms offer risky payouts at a now lowered cost. Perhaps it’s time to go out on a limb and make a few pennies on green companies.