The early months of 2007 have not been good for the stock of CH Energy Group Inc. (NYSE: CHG); the stock has dropped nearly 15% from its 52-week high due to a weak fourth quarter and to pessimistic earnings forecasts for 2007. CHG, a utilities company that services the Central Hudson Valley of New York, blames warmer winters for a decline in earnings and profits.

While CHG has indeed suffered a bit because of these winters, I wouldn't rule this company out, and it might be a good stock to buy in the near future. If you look at CHG's historical prices, its stock tends to dip in the early parts of the year in anticipation of a weaker summer, and I think the stock is currently suffering a bit from the normal cycles of its industry. But as we've seen this spring, weather is also highly unreliable and predictions for a warm winter next year may not come true.

I also like CHG because of its investments in clean tech energy. Through its subsidiary Central Hudson Enterprises Corporation, CHG is investing in wind farms, ethanol, a wood-fired electricity plant, and other types of renewable energy. This will provide opportunities for growth and for cost-savings down the road as green energy grows more popular.

If you're a bit uneasy about the earnings forecast on this one, you can take some reassurance from the dividend; at $2.16 a share, the yield is 4.6%, which will either protect you from the downside or greatly improve your profit.

Type of stock: A utilities company in the Hudson Valley of New York with some interesting investments in renewable energy.

Price target: CHG is currently trading at $48.26, toward the low end of its 52-week range, and I think it would be safe to buy now and hold it through the end of the year. If you want to be really careful, you could wait for it to drop to $45. I'm not sure it will get there, but if it does, I'd grab it.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com.