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Wednesday, June 11, 2008
Ausra CEO Sees World Fueled By Solar Power
FOXBusiness
For Ausra President and CEO Robert Fishman, a world fueled by solar power is no longer just a pipe dream. The company develops large-scale solar thermal electric power stations to produce large amounts of electricity using solar energy.
Fishman told the Fox Business Network’s Liz Claman that the cost of the energy Ausra produces is low.
“We’re competitive with natural gas-fired power plants today assuming that the investment tax credit gets renewed, and if we get good carbon legislation we could be cost-competitive with coal in a couple of years as well,” Fishman said.
Fishman said now is a great opportunity for solar power to become a viable alternative to fossil fuels.
“I think our day has come because not only do we make technological improvements to make our tech more cost-effective, but the cost of traditional energy has gone up so rapidly that now we’re at a crossover point where renewables are economically competitive with tradition energy sources and I think it’s going to stay that way,” he said.
Fishman told Claman the company raised about $73 million. The Ausra CEO said he does see an IPO in the company’s future.
“Yes, we’re debating what the right timing for that is, but I think if you look at the capital needs of a company like ours, it’s inevitable,” he said.
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Some mutual funds want you to pay for the privilege of them (or your investment adviser) taking your money to invest. It's called a load, and it works like a cover charge to get into a nightclub. Luckily, there are such things as no-load funds. As the name implies, shares of these funds are sold without a fee paid to a broker or investment advisor.
The entire amount you invest in no-load funds goes to work for your returns. On the other hand, with load funds, right off the bat you're charged commission (not to mention other fees incurred over the life of the investment). Let's say, for example, you invest $25,000 into a load fund that charges a 5% commission. This costs you $1,250 off the top, bringing your actual investment down to only $23,750.
The often-cited horse race analogy argues against investing in load funds. Here's the logic behind it: Would you place a bet on a horse that had to start a race 200 yards behind the others? Well, maybe you would if you got a tip from a sketchy, trench coat-clad man in a dark alley. However, under most circumstances, it's not smart to put your money on that handicapped horse.
But some argue that at times that man in the trench coat (aka your broker) knows more about the horses than you do, and has a better shot at picking a winner. Also, sometimes these fees are unavoidable because some funds are available only through investment advisers.
Cost-benefit analysis can help determine when a load fund is worth it (in other words, when it will score you a load) and when it is better to "do it yourself" and avoid the fees. Load-fund fees range depending on share class and can cover a variety of costs, such as paper work and fund management.
