McCain’s new proposals to reduce dependence on oil is a $5,000 tax credit for consumers who buy new zero-emission vehicles, overturning the federal ban on offshore oil drilling, and a $300 million prize money for anyone who can create a more efficient car-battery to power hybrid and electric vehicles.The winner of the prize who be someone who can produce a battery package that delivers power at 30 percent of current cost and have “the size, capacity, cost and power to leapfrog the commercially available plug-in hybrids or electric cars.” Currently, the cost of the plug-in hybrid and all-electric vehicles being developed are about double that of gas-fueled ones.  http://www.mercurynews.com/politics/ci_9677728

Flooding in the Midwest has damaged thousands of acres of cropland in Indiana, Illinois, Iowa, and  Wisconsin.  Corn prices are already at record highs because a wet spring delayed planting, and due to increased demands from ethanol production.

High corn prices has already caused the closing of five small to mid-sized US ethanol plants.  As much as 2-5 billion gallons of ethanol could go offline according to a Citi research note.

The higher corn prices means higher prices for corn-based feeds for cattle, hogs, and chickens.  The higher demand for grain is leading the way for gains in the seed and fertilizer market.  The Agriculture Chemicals sector has been the highest performing sector this year.

Source: “Midwest flooding add to farmers’ woes”

http://www.msnbc.msn.com/id/25144871/

With commodity prices so volatile, and overall slowing growth in the economy, it can be difficult to pick a growing industry to invest in.

According to Mitchell Clark at Ahead of the Street, “I continue to think that the alternative energy investment theme remains a pillar investment sector going forward and that the solar energy industry will continue to experience solid growth over the coming years.”

One micro-cap company in this industry that looks very interesting is Amtech Systems, Inc. (NASDAQ/ASYS). This company manufactures specialized equipment that is used to automate the handling of silicon wafers and semiconductors used in the fabrication of solar cells and semiconductor devices.

According to Amtech, in its recent second quarter of fiscal 2008, total revenues grew to almost eighteen million, representing growth of 67% as compared to the comparable quarter last year and up 50% sequentially.

For the third fiscal quarter of 2008, Amtech now anticipates that itstotal sales will be between twenty-one million dollars and twenty-three million dollars, representing growth of approximately 63% to 79% over the comparable period last year. For all of fiscal year2008, Amtech expects total sales to be in the range of seventy-one million dollars to seventy-five million dollars, representing growth of 54% to 63% over fiscal 2007.

The only good news about high oil prices is that it helps us realize the potential opportunity in the alternative energy sector.

Souce “High Oil Prices Heat up Alternative Energy Stocks” by Mitchell Clark, B. Comm.