Green Push Takes A Hit - KBR (NYSE:KBR), Archer-Daniels Midland (NYSE:ADM)

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.

The push for energy efficiency

ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

and alternative fuel development over the past five years has taken a major step backwards over the past six months as oil prices fall to new lows. Super-cheap crude has taken away companies’ incentive to invest in alternative options, something that has put natural gas companies and biofuel firms on the list of businesses feeling the pinch.

Hitting Small Firms

Small firms like Arizona Biodiesel and Blue Ridge Biofuels that convert used restaurant oil into usable fuel have been forced to cut prices in order to remain competitive. With gas stations posting record low prices, consumers are becoming less and less likely to worry about their carbon footprint.

Want Private Access to Benzinga Analyst?

Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.

Ethanol Producers Hit

Ethanol producers are likely to feel the pressure of dropping prices this year too, as corn prices recover and demand continues to slacken. Last year, shares of Archer-Daniels Midland Company (NYSE: ADM) gained more than 16 percent, since the company was able to produce the ethanol with relatively low margins. But persistent price pressure coupled with increasing margins will likely cut into profits this year.

Natural Gas Companies Hit

Natural gas companies are also feeling the squeeze this year as their customers aren’t seeing the same cost savings for swapping out diesel. Shares of Cheniere Energy, Inc. (NYSE: LNG) have lost 3.36 percent over the past six months, as shipping companies are reluctant to pay a premium for trucks that use natural gas when diesel prices are only marginally higher. A lack of natural gas demand will also hurt KBR, Inc. (NYSE: KBR), as the company produces the industrial equipment used at natural gas plants.