"Both Presidential candidates have supported promoting natural gas over oil over oil given our country’s large gas reserves, and alternative energies such as solar and wind,” says Jim Oberweis, Jr.
Here, the small cap growth fund manager and editor of The Oberweis Report looks at several stocks that poised to benefit under a new administration.
“Normally we focus on tiny companies -- but the changing landscape –merits a mention of the likely beneficiaries, irrespective of market cap.
“GMX Resources (NASDAQ: GMXR), one of our favorite US natural gas exploration and production companies, will benefit if demand for natural gas increases. GMX has acreage in the Haynesville shale, a hot region in Louisiana and east Texas touted as the next Barnett shale.
"Willbros Group (NYSE: WG), a specialty construction and engineering firm for the oil and gas industry, is experiencing booming business as demand for pipelines accelerates to take natural gas from the wellhead to the end consumer.
"An indirect winner may be Fuel Systems Solutions (NASDAQ: FSYS), which makes conversion kits that allow cars to run on natural gas or propane rather than gasoline. Note that Fuel Systems has had a big run and we wouldn’t be buyers of shares at current levels.
"Both candidates seem to agree that we need to fuel environmentally-friendly alternatives to foreign oil, including solar.
"Chinese-based solar stocks, which have been pounded in 2008 amid fears that Spain and Germany will reduce solar subsidies, could quickly become market darlings again if the next President sweetens solar economics in the U.S. via subsidies or tax incentives.
"Wind power is another alternative popular with the voters and touted by both candidates. Danish-based wind turbine producer Vestas (Other OTC: VWDRY) and Colorado-based Woodward Governor (NASDAQ: WGOV) are worthy of consideration.
"Our favorites are Suntech Power (NYSE: STP) and Yingli Green Energy (NYSE: YGE). Suntech is larger and better known, but Yingli is growing at 70% and trades for just 9 times 2009 estimated earnings."