Southern Co.'s (NYSE: SO) stock has meandered over the past four months, but rare is the day one should sell an electric power generation play.

Hence, I'm reiterating my Buy rating for SO, first recommended on June 19, 2009 at a price of $30.61.

Much has been written about the trouble General Electric's (NYSE: GE) Financial Services division is having in the current global crises centered on high-risk leveraged loans and multi-leveled derivatives. It is true the company is seeing its share of the pain, and truth be told, I do not think anyone actually knows how deep the total pain will be. Today, GE announced a December 2, 2008 conference call to enlighten investors.

GE is also being affected by slowdowns in the aircraft industry as everyone defers large capital expenditures.

About six weeks ago, after my pal Warren offered to prop up GE with a $3 billion dollar loan with warrant rights and the stock dipped still further, I posted Chasing Value: General Electric is screaming to me! and I was a buyer. The stock then dropped another 35% through this week (brilliant timing), so while I jumped in too early I have to believe it is even a bigger bargain and I will buy more.

If you cringe every time you hear about GE's financial sector woes, then you should smile every time you hear someone chime in about the need for infrastructure projects. Projects that need to get done and projects that would be money wisely spent with long-term benefits. Re-think new stimulus package? Push infrastructure!

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and who have a competitive advantage in established markets, preferably with a favorable global trend as a support. And with the above in mind, Emerson Electric is worth a review.

Emerson Electric Co. (NYSE: EMR) is an industrial conglomerate that operates more than 60 diverse businesses in five business segments: process management, industrial automation, network power, climate technologies, and appliance/tools.

In general, analysts expect Emerson's FY 2008 revenue to increase 10-12% on solid performances from its network power and process management segments.

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and who have a competitive advantage in established markets, preferably with a favorable global trend as a support. But every once in while an exception is made for a non-conforming but innovative/promising company, and along this line EnerNOC is worth a review.

EnerNOC, Inc. (Nasdaq: ENOC) develops and provides clean power solutions to commercial, institutional, and industrial customers, as well as to electric power grid operators and utilities.

Analysts really like ENOC's next-generation, technology-based business model. The company uses its network operations center to remotely manage electricity consumption across a network of end-use customer sites and to make electric capacity and energy available on demand to grid operators and utilities.

Just call NRG Energy the power generator with renovation and reclamation on its mind.

NRG Energy, Inc. (NYSE: NRG) is a wholesale power generating company that owns/operates power plants with a net capacity of 24,175 megawatts.

A majority of NRG's revenue is baseload power. The significance? A stable cash flow. Further NRG's power source is largely natural gas-based, which is preferred, given likely additional restrictions/regulations moving forward for coal-fired plants as nations like the U.S. address climate change. NRG's power source mix: 45% natural gas, 34% coal, 16% oil, 5% nuclear.

NRG's strategy is to repower existing facilities and develop new generating capacity in markets where NRG owns assets, with an emphasis on baseload capacity, long-term power sales agreements, efficiency, and environmental enhancements. So far, NRG's business is on-track. The Reuters Fiscal Year (FY) 2007/2008 EPS consensus estimates for NRG are $2.24 to $2.26.

In the current market, safety and diversification are the order of the day (at least until the U.S. economy starts growing above trend levels, above 3%). With the aforementioned in mind, a company worth reviewing is ABB Ltd.

Switzerland-based ABB Ltd. (NYSE: ABB) is a provider of power and automation technologies designed to help utilities/industries improve performance while lowering the environmental impact.

ABB serves the electric, gas, and water utilities sectors with products, systems and services for power transmission, distribution, and power plant automation.

Google (NASDAQ: GOOG) is amassing a huge staple of power over information and advertising these days. The company's acquisition of YouTube last year and the pending DoubleClick purchase are set to begin creating a massive information use overlord to much of the global internet audience. With that, you have to ask yourself one question: Do you feel lucky?

I'll pass over the Google-esque and Dirty Harry pun jokes there and say that Google wants every customer to feel lucky using its services. Instead of trying to dominate the internet portal landscape, it's settling for providing advertising for any online venue possible in order to take a small cut of all those billions of transactions. That's a tad more profitable than trying to offer every possible feature under the sun (like Yahoo! in the last six years) while not knowing what will stick to the wall and what will fall down. Better to just offer ads everywhere possible and stick to that.

But, there's more to the Google phenomenon-in-progress than advertising domination. Google's YouTube was featured this year as a platform to let ordinary citizens interact with presidential hopefuls set for next year's election (just over a year from now). Ordinary netizens could whip out that cellphone camera or digital videocam and send a question to a presidential candidate. Would that have been possible without YouTube? Perhaps, perhaps not. But, when Google's services start to allow communication of that magnitude, there's something rumbling going on in the world. The larger question is, can Google continue to "do no evil" while becoming omnipresent everywhere in our lives?

Due to potential safety problems, Toyota (NYSE: TM) has decided to delay the launch of new high-mileage hybrids with lithium-ion battery technology by one to two years, according to The Wall Street Journal, which cited people familiar with the strategy. The decision destroys any chance of Toyota meeting its goal of selling 600,000 hybrids a year by early next decade, up from almost 200,000 in 2006. The move allows General Motors (NYSE: GM) and others the opportunity to narrow the gap of future vehicle technology.

Toyota has also postponed its plans for the hybrid versions of the Sequoia SUV and the Tundra pickup until 2013-2014. That puts Toyota way behind General Motors and Chrysler's plans to launch hybrid SUVs in 2008.

The "potential safety problem" Toyota says, is the development of lithium cobalt oxide particles in its batteries, which have a tendency to overheat, catch fire or even explode. According to the company, similar problems have been seen in Sony Corp. (NYSE: SNE) lithium-ion batteries in laptops -- mostly because the chemistry of Sony's batteries was similar to that of batteries they were attempting to use in future hybrids.

The next-generation Prius will instead use the conventional nickel-metal-hydride batteries for its launch in early 2009. The first Toyota hybrid with lithium-ion battery technology will not arrive in the U.S. until 2011.

GM will have an opportunity to launch its first lithium-ion hybrid, the Saturn VUE Green Line model, as soon as late 2009, and before any competitors. Toyota's delays also give Honda Motors (NYSE: HMC) the opportunity to highlight its launch of a subcompact hybrid with improved nickel-metal-hydride batteries in 2009. Volkswagen (OTC: VLKAY), BMW and DaimlerChrysler (NYSE: DAI) all plan to create clean diesel engines for U.S. cars starting in 2009. The automakers say they now have obtained the technology to meet tough American clean-air standards.

Regardless of which company produces the first lithium-ion hybrid, Toyota's delays push back J.D. Power's estimates on future hybrid sales. Hybrid sales totaled 2.3% of all auto sales this year and were expected to reach 5% by 2010.

Power generation stocks, such as Dynegy Inc (NYSE: DYN) and AES Corporation (NYSE: AES), have gotten beaten up pretty good the past few weeks. We blogged recently about the merits of jumping into AES. But Dynegy is another company that investors should look into after the recent market weakness.

As we blogged yesterday, investors should look at sectors that got hit hard in the tech-telecom bubble, as scars in these sectors run deep and investors are quick to run for the hills even though industry fundamentals are much improved. The same can be said for the power generation business.

The power generation business, particularly the merchant power producers, went through a similar type of bust cycle as the telecom sector, with many companies entering bankruptcy. However, Dynegy, which was a must-own stock along with Enron in the late 1990s, was able to avoid bankruptcy, bring in new management, dispose of its money losing tolling arrangement and recently made a large acquisition of a privately held power generator which will help it to grow.

Management in Dynegy is top notch, having come from Duke Power, and has executed magnificently to turn this company around and turn it into an important player in the power generation business. This is one stock your want to consider for your buy list on this market correction.

Last night, The AES Corporation (NYSE: AES) released 2006 adjusted EPS results of $1.14 and provided 2007 guidance roughly in-line with expectations.

AES owns power plants in many of the emerging markets around the world. The AES story is somewhat simple: If an emerging market wants to participate in the global economy, it needs power plants. AES' expertise is in building, owning, financing and operating these facilities for these high-growth markets.

Tomorrow, AES will host a conference call and provide guidance through 2011, so this will be a big area of focus. This stock tends to move with long-term guidance and announcements of large power projects. It is required listening for those interested in making money in the global power producing business.

John McNay, portfolio manager of Essex Investment Management, provided some good investment ideas on the evolving high-tech power business in this weekend's Barron's Magazine (subscription required). A few of these we blogged about in the past, but they're worth noting again.

• Sunpower Corporation (NASDAQ: SPWR), the Cypress Semiconductor Corporation (NYSE: CY) spin off, makes semiconductors for solar cells and solar panels
• MEMC Electronic Materials Inc (NYSE: WFR) makes the polysilicon that is needed to manufacture the solar cells and panels based on semiconductor technology
• Suntech Power Holdings (NYSE: STP), First Solar Inc (NASDAQ: FSLR), Canadian Solar Inc (NASDAQ: CSIQ) and Trina Solar (NYSE: TSL) were other stocks mentioned.

Sunpower and MEMC we have blogged about and know the companies reasonably well. The others you have to do your homework on, as these are new ideas to this Fly.

TJ Rodgers, Cypress Semiconductor's CEO, referred to Sunpower as Intel during the 1970s. That is a big statement. This is an important industry that will get a lot of investors' attention during the next five years. Solar energy utilizing semiconductor technology is an investment theme that is still in its very early stages.

Who ever heard of a backup generator being run indoors? All that diesel exhaust would be sure to suffocate someone, wouldn't it? You bet it would! Place a diesel fired backup generator in the basement of any hospital and you could be in for some serious respiratory troubles, not to mention the fact that the local Fire Marshall would probably have something to say about it . A recent report by Green Progress adds a whole new angle to this scenario.

Enter the next generation of backup power systems. Power Air Corporation (OTC:PWAC) has developed and holds many exclusive rights to Zinc Air indoor power generating systems. Revealed for the first time beyond the confines of nondisclosure agreements, a Zinc Air Fuel Cell (ZAFC) prototype generator was run indoors at Fuel Cell Expo 2007 in Tokyo, Japan, as a center stage demonstration and testament to the viability of the technology. A joint venture by Power Air Corp. and it's current Asian Joint Venture partner, H-Plus Eco Ltd, has brought Zinc Air Fuel Cell technology to the point where further investment and involvement is being solicited from additional prospective Asian venture capitalists and manufacturers.

Mr. Remy Kozak, President and CEO of Power Air states: "ZAFC based generators have the potential to revolutionize the back-up power industry " At present, ZAFC technology is mainly being considered as a constructive adjunct to current electrical generation systems. Although unable to determine a comparison of actual operating costs, I gained by inference that those costs shall, for the time being, restrict ZAFC technology to mainly backup status. Not to worry though, as you know new technologies have always languished in the background for a time before genuinely taking hold. However, given the ever tightening EPA air quality standards, ZAFC generators have the potential to move ahead somewhat faster than the average development curve.

It pleases me greatly to know that yet another potentially hydro carbon-free option has emerged. This could be just one more chink in big oil's armor. The gap is closing between those who have their thinking caps on and those who are just sitting on their big fat ... wallets. I'd put my money with the thinking cap gang any day. Those fat wallet folks stand a mighty good chance of seeing those wallets thinned a bit or else just falling off of them .

Not that it needed any help, but it appears that the sun is getting a big surge of power. Well actually, it's solar stocks that are getting a jump start. With support from an article by Peter Lynch for www.Investorideas.com , I'm staying on the solar band wagon.

Many of our readers know that I've been up on this solar game for a while now, especially those oil heavy fund managers who have been laughing at me from Wall Street. I hear that laughter and I'm reminded of the billions of dollars lost in natural gas options this past year. Yes, it's a tough world in the energy game and I believe that for those who refuse to get in step, it's going to get tougher still.

Please pardon me while I get a bit whimsical here. I get a prose bug from time to time. You must forgive me if this is light duty reading for such a well read crowd but I'm just having fun!
Submitted for the approval of our readers:

If I had bet upon the game and chance did let me win, let's say my take was twenty grand and now let us begin. I'd take ten grand right off the top and invest in GE (General Electric Company (NYSE:GE)). A stalwart and diverse keystone is paramount to me.

I'd next place 4k in the hands of Limited Brands (NYSE: LTD) for care. It's hard to take a loss, my friend, in sexy underwear. And candles bright and fragrances and things the ladies like, assure me that our LTD is on an upward hike.

Two grand I'd sure send Wal-Mart Stores, Inc.'s (NYSE:WMT) way, though kicked around a lot. I just can't seem to shake the truth they'd be a safer spot.

This Daily Option Update is provided by Options Specialist Paul Foster of theflyonthewall.com.

Today the Volatility Index S&P 500 Options (VIX) was up .03 to 10.80.

SunPower Corporation (NASDAQ:SPWR) puts bid higher than calls on difficult to borrow into earnings per share and speech. SunPower designs, develops, manufacturers, and sells electric power products, systems, and services. SunPower will report EPS on 1/25. President Bush's State of Union Speech is expected to emphasize renewable and alternative fuels as a source to decrease reliance on foreign oil. SunPower February call option implied volatility was at 48, puts at 59 because SunPower is difficult to borrow. SunPower 26-week average option implied volatility was 50 according to Track Data.

Pacific Ethanol Inc. (NASDAQ:PEIX) implied volatility was flat as PEIX rallied into the State of Union Speech. Pacific Ethanol is engaged in the business of marketing ethanol. PEIX was up $1.45 to $18.30. Crude oil was up 1.86% to $53.55. President Bush's State of Union Speech is expected to emphasize renewable and alternative fuels as a source to decrease reliance on foreign oil. Freidman Billings says "we are raising our price target for Pacific Ethanol from $16 to $20 and moving from a Market Perform to an Outperform investment rating based on expectations for positive momentum in the stock resulting from an increasingly favorable regulatory environment." Pacific Ethanol February call option implied volatility was at 55, puts at 64 on Pacific Ethanol being difficult to borrow and expected downward Pacific Ethanol price pressure. Pacific Ethanol 26-week average option implied volatility was at 61 according to Track Data, suggesting non-directional price risks.

Citigroup Inc. (NYSE:C) is recently down .22 to $54.45. Goldman Sachs increased its 2007 EPS estimates to $4.60 from $4.56. Citicorp over all option implied volatility was flat at 15 according to Track Data.

Option volume leaders today were: Yahoo! Inc. (NASDAQ: YHOO), Apple, Inc (NASDAQ: AAPL), Pfizer Inc.(NYSE: PFE), Amgen (NASDAQ: AMGN), and eBay Inc. (NASDAQ: EBAY).