Alterra Power Corp.

by JDH on August 20, 2016

There are two ways to make money investing in stocks: capital gains, and dividends.  With most stocks, it’s one or the other.  Today we discuss a stock that will, I believe, end up providing both streams, and that makes it a great, relatively low risk investment: Alterra Power Corp.

As regular readers of this blog know, I like relatively highly leveraged, high risk speculations in gold, which is why for the last few weeks all I have discussed is my (very successful) short term (less than a week on average) trades in NUGT, a 3 times leveraged gold ETF.

Alterra is the exact opposite of NUGT.  It’s not in the precious metals sector, and it is an investment, not a speculation.

As I expect to be following this stock for an extended period of time, I have recorded my detailed thoughts on the new Alterra Power Corp. page, so please refer to that for full details.  Here’s the quick version: Alterra has had a lot of technical problems with their energy projects, and as a result has a long history of losing money.  I believe that is about to change, so now is a good time to invest.

Alterra is a green energy company, operating geothermal plants in Iceland, run of river hydro projects in British Columbia, and a wind farm in Texas.

Here’s some chart history:

AlterraAug19-2016

After a long period of consolidation, Alterra has started to move, increasing from the 45 cent range through the last half of 2015 to the first half of 2016, up to the 70 cent range recently.

Last week there was a slight pullback, but it would appear that 65 cents would be a decent entry point, with stink bids in the 50 to 55 cent range.

Here’s a longer term perspective, with Fibonnaci levels draw from different peaks:

AXY-6years-Aug19-2016

AXY-FullFibonacci-Aug19-2016

Clearly this is not a stock that is out of the woods yet, but the picture is encouraging.

 

This is not a get rich quick scheme.  The company is operating some very technically challenging projects, so there will be setbacks.  However, the company does appear to be going in the right direction.  I have started to build my position and will add to it on further weakness.

Again, full details are on the new Alterra Power Corp. page, so please review that for more details.

Thanks for reading; see you next week.