Investing in Pickens Plan

Trend: Support for Pickens Plan will boost wind and natural gas investments.

ETF Expert Gary Gordon picks investments that would benefit from Pickens Plan.

Link: ETF Expert: Wind ETFs, Natural Gas ETFs: Oil Man Pickens Thinks You'll Make Money.

1. First Trust ISE Global Wind Energy ETF (FAN). Many of the companies are truly global, which does intrigue me. There are some 52 companies with a reasonably attractive price-to-sales ratio of 2.3. The median market cap of 1.5 billion makes FAN a mid-cap growth investment. With volume in the 350,000 range, this investment is  more than "hot air." (The P/E ratio may be on the high side at roughly 25.)

2. Powershares Global Wind Energy Portfolio (PWND). The volume is a bit lighter here, which may make for a less desirable entry and/or exit point. There are 32 companies across the growth spectrum -- large, medium and small. And the expense ratio of 0.75% seems rather steep. Yet a long=-term believer in global companies that manufacture, develop, distribute, install and use energy derived from wind sources would certainly succeed with PWND if wind energy became a mainstay.

3. First Trust ISE-Revere Natural Gas ETF (FCG). This fund tracks an equal-weighted index consisting of companies that derive a substantial portion of their revenue from the exploration and production of natural gas. it's up roughly 28% in 2008 thus far. The P/E has steadily risen from 13 a few months ago to 17 today. Nevertheless, for those who see natural gas in a Pickens-like manner, that would hardly stop you. The 30 companies in the index being track include names like Chesapeake (CHK), Comstock (CRK) and Petroquest (PQ).

Comments

[scotty]

Great place to Discuss Energy Environment Issues :
Energy Environment Forum
Cheers !

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