A pure play in the coming boom of green/clean investments.
Submitted by PaulRen on Fri, 13/03/2009 - 8:18am
Category:
Industry
Pure plays in clean/green/ investment choices in Thailand, an investor theme to come.
As global markets settle and see some light at the end of the tunnel later this year, I know the next big thing will be "green companies", i.e. listed companies around the world which help save energy, reduce pollution, or in other ways help the world in its fight against pollution, "dirty fuel" dependency and global warming.
This is currently a big subject in the West to be taking seriously. There will be a global fight on which country can take on the new leadership on this. Huge amounts of capital, both government and private, will be seeking these firms out as they know/believe this is the only way for the future to survive.
Already now I get inquires by the foreign press on which SET/MAI companies partake in this in some form? I have been mentioning mostly UEC, DEMCO indirectly so, but LVT stands out more then any other listed firm here, yet at the same time its the least valued on the MAI. I think this makes no sense as already told here many times. Understanding LVT better will likely have you see why I am excited here...and pounding the table.
Here below I just list some varied facts/stats why Green will be the new boom industry:
The next big boom industry is clean/green across the board! From energy savings, to less pollution -and not least to a reduction if not elimination on being held hostage (or tolerate/ill relations) by less then open and often rogue behaving oil producing countries. These countries' leaders often get worse in their ways as the price of oil goes up, as was just evident in the latest price surge by mid 2008.
Many in the US now believe it is a curse, no longer to be tolerated, to support the often bad behavior and human/women rights abusers of the many oil producing nations. Hence it is a core/central policy now for the US to divest itself once and for all from the oil/dirty energy habit and re-invent new industries. President Obama as so many others support and lead on this happening.
"There will be hundreds of billions of dollars worth of alternative energy investments made around the world over the next two decades, creating millions of new jobs." From the new authoritative book just published: "Change For America. A progressive blueprint for the 44th President". Edited by Mark Green and Michele Jolin Just Published, 2009.
I for one predict it will be a huge new industry now exploding, where in time the next likely bubble will eventually brew.
If you read the book "Change for America" and others on related subjects one understands more why the green industry has the huge momentum. Currently there are hundreds of books and web sites which write about his...the following and support has been larger then anytime in the past. Soon large US and global tax incentives will be put in place along with huge government investments, supporting these new growth/clean industries so critical to saving the world besides becoming new growth industries.
This is especially coming out of the US which wants to re-acclaim its moral leadership by being the leader in what will be judged one day as the green/life/world saving critical new industries which coincide in also being the new growth boom companies. Studies have shown that energy saving/solar/wind/green etc, all these newer industries are relatively labor intensive and a higher skilled labor at that.
In time you will see/agree there is now huge new sustained appetite and mandate among many new global fund managers and investors alike to identify and invest in companies which are part of this in some ways. It is already happening. Again, I have received several press inquiries in the past few months by western publishers whom want to know which companies on the SET/MAI could be considered "green" companies.
In time you will see/agree there is now huge new sustained appetite and mandate among many new global fund managers and investors alike to identify and invest in companies which are part of this in some ways. It is already happening. Again, I have received several press inquiries in the past few months by western publishers whom want to know which companies on the SET/MAI could be considered "green" companies.
Here are just some samples of this, the list could be a mile long:
--Cemex (USA) one of the world's biggest cement producer and so huge consumer of energy was nearly bankrupted a couple of months ago due to its delays in installing pollution control devices, which is the same to say as energy saving technology.
--Countries as well as companies the world over have new green/energy saving policies in place and firms have created new responsible officers to oversea just that.
--Pacific Northwest National Laboratory (PNNL) calculates that moving to a smart grid technology will eliminate the need for $46 to $117 billion in conventional utility infrastructure alone.
---The graph on cumulative wind energy in place is a very sharp sloap upwards, from producing barely 5 Gigawatts in all 1995 to now nearly 100 Gigawatts of electrical power in year 2007*. As predicted in many credible journals, its likely to soar far more in coming years.
---Green growth funds, environmental funds, new world funds, alternative energy funds, energy savings funds, global warming solutions funds etc...are all gearing up for this as they sense billions of investment dollars will be channeled through such intermediaries as the world recovers from the current mess and looks to the issue after saving itself, to saving the world now.
*("Clean Money", by John Rubino, page 126)
Green, clean, energy saving, solar/wind, smart electrical grids and appliances, energy efficient buildings etc...are all new buzzwords which may have been around for some time, but never before has an economic crisis mandated new changes (change, here is that word again) of the magnitude now; and one of the key changes are the un-stoppable explosion now taking of these new growth industries.
At its core, these have the promise of do all three things at once: help reduce world pollution, creating new jobs and industries in areas which require know-how & skills, reduce dependance on foreign oil provided by often rogue leaders in developing countries. Last and not least, to reclaim a US desired renewed moral leadership in what will be seen and already is evident, "life & world saving".
I think it would be smart and timely for all of you to now understand LVT better, as surely they are one of the only "pure play" on this very theme, as their whole reason for being is on energy saving devices -and this to one of the world's biggest energy user industries.
Best Regards,
Paul Renaud.
