Every week, I publish a “watchlist” of stocks for my Total Wealth free e-letter subscribers. It’s just like how it sounds; they’re stocks I’m keeping tabs on because I see the potential for big, imminent moves. That’s also why I talk about speculative trades people can execute to cash in on those moves.
My editor, though, asked me to share this week’s watchlist with everybody because it’s packed with clean energy stocks.
Thanks to the infrastructure bill, and what will likely be billions and billions in earmarks, the whole sector is heating up. There’s also a great deal of global growth here, outside of the United States, as the world transitions away from fossil fuels. Be that as it may, choosing the right stocks here can mean the difference between missing out, or collecting ho-hum profits, and knocking it out of the park.
These stocks are near or below certain key support and resistance levels that put them in play right now…
Here’s My “Green” Watchlist This Week
Stocks like Tesla Inc. (NASDAQ: TSLA) and other EV makers grab headlines, but there’s more – a lot more – than vehicles themselves to this boom. There’s perhaps even more profit potential in the “stuff” that goes along with EVs, like electric motors and charging stations. Most sources agree that there will need to be hundreds of thousands of efficient charging stations built nationwide – Biden himself has floated a figure in the 500,000 range – for the transition to electric vehicles to work.
Two of my very favorite companies in this space are in play right now; they’re potential beneficiaries of the infrastructure bill, of course, but also, the Democrats’ proposed $3 trillion social and climate action plan.
I’m talking about ChargePoint Holdings Inc. (NYSE: CHPT) and Beam Global (NASDAQ: BEEM). ChargePoint is based in the heart of Silicon Valley and operates the largest network of EV charging stations in the United States, with a presence in Mexico, Canada, and Australia, too. As of late 2020, it owned 114,00 charging stations nationwide. It also sells directly to consumers – EV owners – with “home” versions of its charging stations.
That alone isn’t what makes the stock so compelling; it develops and builds hardware and software for all kinds of electric vehicles, too.
The stock has been under pressure of late, to the point where it’s reaching bargain territory. I think it’s ready for a rally. If CHPT closes above $27, I like buying a call spread on these shares – CHPT Oct 15, 2021 $28 and $29 calls for around $0.45 or less for each one.
Beam Global is into electric vehicle charging infrastructure as well, with a unique emphasis on solar power. It designs, manufactures, and sells all kinds of solar-powered products. Beam’s solar-powered EV charging stations could end up being a game-changer. As things stand now, it takes beaucoup permitting and red tape cutting to get an EV station installed and integrated with the local power grid; it’s not easy to do. Beam’s stations, however, are easy to install anywhere there’s room; there’s no permitting required in most if not all U.S. jurisdictions, and no construction or integration required, either.
BEEM stock is also down over the past several sessions. Should this stock rally back toward and then reclaim six-month highs, closing above $34, I’d buy BEEM Nov. 19, 2021 $35 calls and BEEM Nov. 19, 2021 $40 calls for $2 or less.
Plug Power Inc. (NASDAQ: PLUG) was all the rage last summer, and for me, the attraction’s never waned. I think the Latham, New York-based hydrogen fuel cell manufacturer is on the right track, designing next-generation batteries, or fuel cells, capable of recharging in minutes, as opposed to hours for traditional batteries. It was a pioneer in the space here in the United States, and it’s closed a series of lucrative deals in the past 12 months, partnering with South Korea’s SK Group conglomerate to provide fuel cells to the massive Asian market and striking a deal for a joint venture with French automaker Renault.
Plug Power turned in decidedly mixed results in its second-quarter reporting earlier this month. It jumped nearly 17% over three sessions, but had given most of that back as of the end of last week.
I think we could see another leg down from here, but I want to see the stock break support before I make a move. If PLUG shares close below $25.00 by the end of August 2021, I like buying the PLUG Dec. 17, 2021 $20/$22.50 put spread for $1.20 or less.
And finally, I’m watching Global X Lithium & Battery Tech ETF (NYSEArca: LIT). Like it says on the box, LIT is an exchange-traded fund that holds a basket of lithium miners and battery tech companies, which, as we’ve seen, are playing an outsized role in the growing EV and clean energy markets. Lithium is absolutely critical to EV production and powering, and it has several other “green energy” applications, as well. There is plenty of lithium in the ground, but efforts to mine and process it have barely ramped up, with operations taking place in just a handful of countries. That bakes in the kind of scarcity that makes for higher lithium prices. I like it.
LIT has already had a great run this year and I think we could see another leg higher, assuming it can close above recent highs. If LIT closes above $88.00, I like buying the LIT Jan. 21, 2022 $90/$95 call spread for $2.25 or less.
The push toward clean energy and electric vehicle adoption is taking place amidst an explosion of American entrepreneurial excellence. Consider this: Around 500 companies are looking to take their shares public in the United States right now. I expect quite a few of those firms may be looking to make a big splash in the clean technology and EV sectors.
At this early stage, it’s possible to secure what I call “pre-IPO rights” in many of these companies, and oftentimes, these special rights can go for around $1. In the event the company goes public, the value of these pre-IPO rights can potentially skyrocket; I know of exceptional cases where peak gains of 2,088%, 6,566%, 8,280%, 9,075%, even 27,550% were realized. I’ve got more for you about this profit potential right here…
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About the Author
Browse Shah’s articles | View Shah’s research services
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor’s 100 began trading on March 11, 1983, Shah worked in “the pit” as a market maker.
The work he did laid the foundation for what would later become the VIX – to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd’s TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company’s “listed” and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah’s vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story – when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business’s Varney & Co.
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