Fuel cells have been “almost viable” for the past 15 years it seems. I like the technology, but I am not sure what it will take to make it truly arrive. Maybe $200 oil will do the trick. Or maybe it will be like fusion power. As for Hydrogen, I’ve always wondered about how to store it effectively. If hydrogen leaks, it will be very light and just float upwards, but it is essentially a highly reactive acid, and you really don’t want to get it in your lungs.
grizzums Wrote: ------------------------------------------------------- > Best play in the auto space to position a > portfolio for is not a manufacturer at all, but > rather the auto parts retailers. The current > macro backdrop and consumer behaviorial shifts > sets parts retailers up well and several of them > are sitting at some (increasingly) attractive > valuations. I am long two names in particular, > but Ill hold back the names as not to “pump” my > picks. Id personally look for companies with > increasing market share, solid earnings despite > headwinds, affirmed credit ratings (I don’t put > much faith in ratings agencies however) and ones > that, I don’t know, are looking to buy back $500 > million of their stock… 
> > PS I hedge all positions I take. > > Good luck. You are hedging against market risk, so you basically have a market neutral portfolio? Or do you mean some other kind of hedge?
Keep in mind that I am just speaking of my own personal portfolio…I am not in the industry. It depends on which account I am trading/speculating with, but yes, I take a market neutral approach. As you probably know, “market neutral” is simply a broad term with many different strategies used to accomplish it. Sometimes I will work to neutralize my risk for an entire portfolio via index futures and other times (in other accts.) I will simply use long/short strategies with individual securities. I do not get into complex market neutral strategies. As an example of a particular strategy of a long/short opportunity I might use, let me take a look at the retail sector. I walk the aisles of a Wal-Mart looking to get ahead of price changes that may affect earnings in an inflationary environment because they rely on purchasing items in bulk and profit on very slim margins. Noticing prices on non-discretionary items moving up across the board is an indicator that it is time to rip through the sector’s next earnings estimates for the upcoming q’s to see which co’s are positioned well enough to be able to absorb the costs and those that tread on too thin of margins and will have to raise prices to cover decreased sales and higher expenses. After making those assessments, I am ready to pull the trigger on a long/short individual security strategy. Over this past year+, it was quite obvious to those of us working in the construction field and speculating in real estate that prices had gotten way out of control and many were blinded by inflated market euphoria. It was also quite clear that with a ridiculous ethanol mandate where we burn the world’s food supply while refusing to permit clearing ground to increase the capacity for the growers, grains were an easy money maker. This is an example of where positioning a portfolio in a long/short strategy (sector wise) was a clear one to make. re: auto parts - I have been utilizing a long/ short strategy since the beginning of the year that tips my long hand towards the parts retailers while shorting the manufacturers. Being long AZO and short GM has worked out well. By listening carefully to some friends that have been at this for a lot longer than I and simply paying attention to what is occurring in the “the real world”, I try and learn what works and what doesn’t. Best of Luck.