Here Comes the Sun

Forbes Magazine dated October 27, 2008 The price of oil has retreated from its dizzying June peak, and energy stocks have taken a pounding. Still, the cost of a tank of gas remains painfully high, and both John McCain and Barack Obama, for all their differences, want to reduce America's dependence on foreign oil by promoting alternative energies such as natural gas, solar, hydro and wind. Politicians across the spectrum and even oil tycoon T. Boone Pickens are clamoring for alternative energy. With all that fervor while stock prices are down, it's time to buy. My firm seeks out high-growth smaller companies that trade at reasonable price/earnings ratios. What's reasonable? Our rule of thumb is to divide the P/E by the growth rate (in percentage points) and to look closely at any company for which this number is less than one.... [read full story]