Real Money’s Chris Versace had an interesting point on alternative energy today.

I can understand why several of the solar stocks are up big today, but if at least one of the driving forces here is how the next presidential administration will be favoring alternative energy programs, then why not LEDs, which use 10% the energy of a conventional light bulb and are getting traction in all sorts of applications (notebook computers, PCs, televisions and autos) and wind power related companies. Potential plays here could be CREE and Rubicon Technology for LEDs and Trinity Industries for wind power.

Position: Long CREE

The technology for making LED’s more efficient is rapidly improving to the point where they are actually serious competition for fluorescent light bulbs. They have other serious advantages too, such as a lack of mercury and a willingness to work in tandem with alternative sources of energy.

Versace suggested CREE, but other popular LED stocks include CLRK, CMH.to, and for more cautious investors, PHG.