Zoltek: A Promising Alternative Energy Stock for the Long Run

Zoltek (ZOLT), according to Forbes magazine, manufactures carbon fiber, a new age material that is simultaneously light-weight and 100 times stronger than steel. Currently, the major applications for Zoltek's carbon fibers are the propellers for wind mills and aircraft brakes. However, applications for the use of carbon fibers are increasing everyday. BMW has announced, that by 201o, they hope to build an automobile entirely out of carbon fiber.

For shareholders, Zoltek has offered a bumpy ride. Things are looking up, though, as the company reported an incredible first quarter. Gramercy Capital Management, regularly featured in Forbes magazine, has gone on record with a 2008 target price of $40 for the company's shares. If obtained, that price target represents a 103% gain on investment for those investors who bought shares in the company at the beginning of this year. As for those of you who do not already own this potentially break-out stock, I recommend waiting for dips before establishing a position in the company, as the company's stock has appreciated significantly in the past month and a half. For purposes of disclosure, I do not own shares in ZOLT.