United Technologies (UTX) Goes Solar

United Technologies (UTX) has done well for investors. Its shares are up over 35% during the last two years. Its larger peer GE (GE) is up only 5% during the same period.

But, UTX is in some businesses which may not grow as rapidly as they once did. That might include air conditioning and elevators.  So, the company would be wise to look outside some of its core businesses for new opportunities.

United Technologies is doing just that by dusting off some old R&D and putting it to use in the super hot solar energy field.

Solar energy presents two problems for developers. The first is collecting energy from the sun. The other is storing it.

According to The Wall Street Journal, UTX unit Hamilton Sundstrand "is scheduled to announce that it has teamed with US Renewables Group to commercialize a new type of solar-power plant that will use molten salt to store the sun’s heat so it can be converted to electrical power."

The business venture may make good money, but UTX management is more clever than that. Many solar energy stocks have doubled or tripled in the last year based on the theory that the alternative to crude will be a big winner as oil prices stay high.

United Technologies has a chance to change how its is perceived. An old line conglomerate or a cutting edge alternative fuel provider? Not hard to guess which one is more appealing.

Douglas A. McIntyre