BPI Energy Holdings Inc.

BPI Energy Holdings Inc. is an AMEX listed security that has been trading in a range between $0.45 and $1.65 over the past year. With 72,524,490 shares outstanding, a recent price of $0.70 gives a total market capitalization of $50,767,142. While there are certainly larger companies, BPI Energy Holdings Inc. has definitely earned its place in the pack. Last year, BPI Energy Holdings Inc. created $-0.12 in earnings for every share outstanding.

BPI Energy Holdings Inc. is currently priced by the market at 0.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, BPI Energy Holdings Inc. is unlikely to be an interesting value proposition.

Commerce Energy Group, Inc.

Commerce Energy Group, Inc. is an AMEX listed security that has been trading in a range between $1.01 and $3.25 over the past year. With 30,385,870 shares outstanding, a recent price of $2.01 gives a total market capitalization of $62,291,032. While there are certainly larger companies, Commerce Energy Group, Inc. has definitely earned its place in the pack. Last year, Commerce Energy Group, Inc. created $0.17 in earnings for every share outstanding.

Commerce Energy Group, Inc. is currently priced by the market at 11.90 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Commerce Energy Group, Inc. could be an interesting value proposition.

Evolution Petroleum Corporation

Evolution Petroleum Corporation is an AMEX listed security that has been trading in a range between $2.30 and $3.74 over the past year. With 26,759,240 shares outstanding, a recent price of $3.02 gives a total market capitalization of $80,812,904. While there are certainly larger companies, Evolution Petroleum Corporation has definitely earned its place in the pack. Last year, Evolution Petroleum Corporation created $0.92 in earnings for every share outstanding.

Evolution Petroleum Corporation is currently priced by the market at 3.30 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Evolution Petroleum Corporation is unlikely to be an interesting value proposition.

Florida Public Utilities Company

Florida Public Utilities Company is an AMEX listed security that has been trading in a range between $11.01 and $14.42 over the past year. With 6,028,830 shares outstanding, a recent price of $12.39 gives a total market capitalization of $74,616,419. While there are certainly larger companies, Florida Public Utilities Company has definitely earned its place in the pack. Last year, Florida Public Utilities Company created $0.62 in earnings for every share outstanding.

Florida Public Utilities Company is currently priced by the market at 20.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Florida Public Utilities Company could be an interesting value proposition.

Dune Energy, Inc.

Dune Energy, Inc. is an AMEX listed security that has been trading in a range between $1.20 and $3.10 over the past year. With 72,891,680 shares outstanding, a recent price of $2.40 gives a total market capitalization of $176,397,871. While there are certainly larger companies, Dune Energy, Inc. has definitely earned its place in the pack. Last year, Dune Energy, Inc. created $-1.00 in earnings for every share outstanding.

Dune Energy, Inc. is currently priced by the market at 0.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Dune Energy, Inc. is unlikely to be an interesting value proposition.

CenterPoint Energy

CenterPoint Energy is among the world’s largest Multi-Utilities sector businesses in the world. CenterPoint Energy’s employees generate $474.0M in profits on $9.348B of revenue. Global output in the Multi-Utilities business will likely rise substantially over the next 10 years. Long-term economic growth may lift all boats, but CenterPoint Energy is determined to remain a market leader. Sectoral leadership in the Multi-Utilities segment takes dedication and consistency, but management seeks out-sized growth.

CenterPoint Energy’s ticker symbol CNP has recently been trading near $17.55 a share. The CenterPoint Energy corporate headquarters in Houston, TX predicts Multi-Utilities profits will satisfy shareholders in search of risk-appropriate returns.

The significance of market volume is sometimes ignored, but with a total market capitalization of $5.630B ensures sufficient liquidity. With a beta of 0.67, the company is less volatile than the market as a whole. When the average equity moves lower, CenterPoint Energy moves less aggressively.

AES Corp.

AES Corp. is among the world’s largest Independent Power Producers and Energy Traders sector businesses in the world. AES Corp.’s employees generate $75.00M in profits on $12.603B of revenue. Global output in the Independent Power Producers and Energy Traders business will likely rise substantially over the next 10 years. Long-term economic growth may lift all boats, but AES Corp. is determined to remain a market leader. Sectoral leadership in the Independent Power Producers & Energy Traders segment takes dedication and consistency, but management seeks out-sized growth.

AES Corp.’s ticker symbol AES has recently been trading near $22.21 a share. The AES Corp. corporate headquarters in Arlington, VA predicts Independent Power Producers and Energy Traders profits will satisfy shareholders in search of risk-appropriate returns.

The significance of market volume is sometimes ignored, but with a total market capitalization of $14.840B ensures sufficient liquidity. With a beta of 0.63, the company is less volatile than the market as a whole. When the average equity moves lower, AES Corp. moves less aggressively.

Are Hedge Funds Growing Out of Control?

The number of hedge funds and the amount of capital they control has been growing at an incredible rate recently. Yet the out-sized returns promised by hedge fund managers have failed to materialize for most investors. While most hedge funds are closely held entities that only the super-wealthy can invest in, the presence of major pensions and university endowments sheds a meaningful amount of light on the industry.

Given the limited data available, hedge funds in aggregate have not been beating the market at all. A very few funds have had well-publicized returns in excess of 300%, but the enormous expense ratios associated with these funds mean that only the managers are getting truly wealthy. An annualized return well in excess of 100% after all expenses seems to be well worth the limited investor control, but the risks that were undertaken to achieve these returns are essentially unknowns.

One Houston-based hedge fund made headlines when it lost billions of dollars in investor cash due to natural gas options. The market moved unpredictably and the smart money got burned. Or did it? Another Houston-based hedge fund made billions taking the opposite position on natural gas during this same period. In essence, one group of smart guys ended up taking all the money that used to belong to the not-so smart guys. The only question investors need to ask themselves is if they can tell the difference between the winners and the losers.

The real trouble with the growth of hedge funds, however, is that their returns are starting to correlate much more closely with the rest of the market. As hedge funds grow in size, it becomes difficult to aggressively invest without coming to resemble a very expensive mutual fund.

Putin's Energy Empire Grows

The IHT reports that Russia has succeeded in winning a contract to build a natural gas pipeline to important Caspian resources in Turkmenistan. The deal reflects a triumph of sorts for economic pragmatism and Russia's control over the energy sphere in its own backyard. The United States had been aggressively pushing an alternative pipeline that would have run away from Russia in an attempt to loosen Russia's grip on Europe's energy markets.

Of course, American diplomats and the assorted multinationals behind the alternative proposal were operating from something of a disadvantage. Russia claims the pipeline it plans to build will cost $1 billion. The American pipeline would have cost $10 billion. Turkmenistan was nonetheless willing to look at the American proposal because of its potential to get the country out from under Russia's thumb.

In particular, Russia's current energy needs are met by buying approximately 80% of Turkmenistan's natural gas for about $100 per 1000 cubic meters. The problem from Turkmenistan's point of view is that Russia is simultaneously selling its own natural gas for $255 to Europe.

Turkmenistan's president will no doubt attempt to use the spectre of an alternate pipeline to encourage Russia to pay more for the energy, but ultimately the only economically viable proposal involved a pipeline to Russia.

At the same time, Putin continues his brutal energy diplomacy with Europe. The world watched with baited breath when Russia cut off supplies to Europe through Ukraine when Ukraine siphoned off some of the natural gas to run its economy. But Russia also shut down a pipeline to Lithuania in July and hasn't turned it back on. Lithuania's continued energy insecurity could spark a confrontation between the EU and Russia the next time Putin tries to raise rates.