Investing in global warming
Environmental sustainability has become the catchword now. And green stocks have caught the eye of investors though they are necessarily slow burn out funds. It will pay in the long run, say over 15 year period. RETIREES For those on the verge of superannuation choosing the right firms matter, because the returns after 10-15 years must be substantial. Some smaller firms may burn out in due course and investing in them in these environment-conscious times might backfireas the returns in 4-5 years could be slow or nothing. One has to go in for firms that have top of the list in the field. TOP COMPANIES There are any companies that specialise in environment friendly technologies and services. Climate change has caught the attention of governments the world over and efforts are directed towards rewarding those companies thatcontribute to reduction in emissions of CO2 and other noxious gases. Fuel Tech, a U.S.Comapny specialises in reducing emissions from coal burning power stations. Its shares have shot up six times in the last three years. Wind turbines are a major branch of efforts to reduce global warming. Many companies the world over have put in huge investments in this area. Clipper Windpower, whose shares quadrupled since 2005 in the London market, has been a wellknown operator in the area. Harnessing power from the sea or natural streams has become a major exercise in many countries of Europe. In India it is still in the backstage though the government is seriously along the lines. Tidal power, like nuclear energy, can reduce power cost by a huge margin and is also climate friendly. General Electric(GE)has been into diverse environmentally friendly businesses and services from wind turbines to specialist lighting. Toyota is another major player which has been intent on turning out fuel-efficient hybrid cars. It is patent that the focus now is on a range of services from wind turbines to use of wood and therefore protection of forests. Many companies, both big and small, have ventured into this area. Firms that are bent on wind turbines or recycling services have a potential market to play on and investors eager to put their money in. GREEN BUILDINGS There has been a surge in demand for timber across the world and hence efforts are taken to protect forests. Timber makes excellent insulating material in buildings. With green buildings fast picking up all over and carbon credit rating/trading simultaneously evolving the role of timber and firms marketing it will grow. Their stocks are going to be much anticipated. There are five stocks that speculators believe will do well in the near future. They are: Gamesa, a Spanish wind turbine manufacturer whose shares have doubled in the last few years, Fuel Tech, First Group which is running buses across U.K.and North America , RPS Group , a business consultancy firm concerned with development of natural resources and Tomra, a Scandinavian group specialising in waste management through recycling. However there are mitigating factors as experts in the field warn. The shares are influenced by external drivers too, with less predictable factors such as the broader equity market and investor risk-appetite contributing to performance. All that is needed is a bit of research and understanding. Then the investment is safe.
http://subbumani.sulekha.com/blog/post/2008/10/investing-in-global-warming.htm
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