NEW YORK, April 1 /PRNewswire/ --
Between record high oil prices, the volatile stock market and a recession, it's a tough time to be an investor. But there's a little known bright spot on the market that actually benefits from high oil prices -- the Recycling Industry.
In fact, the Recycling Industry offers investors one of the few ways to profit during the current recession, according to a report released by Progressive Investor, "Investing in Recycling."
"Ever escalating energy prices, commodity price inflation and scarcity, and global environmental concerns have coalesced into a "perfect storm" for the industry," says Eric Prouty, Senior Energy Analyst, Cannacord Adams.
Many people aren't aware of the central role the recycling industry plays these days. It has become a backbone of our economy, pulling in US$236 billion in revenues last year and employing over a million people. The industry accounted for about 2% the U.S. gross domestic product in 2007.
At the current rate of resource depletion, especially from emerging economies like China, the world literally can no longer satisfy demand for paper and steel from virgin materials alone. Recycling has become an absolute necessity for industrial growth and stability. We couldn't print a newspaper, build a car, or ship a product in a cardboard box without recycled materials.
"Although we usually think of the benefits of recycling as reducing waste and protecting forests and habitats from mining and clearcutting," says Rona Fried, editor of Progressive Investor, "it is also a key solution for climate change. Making new materials from old ones is a classic example of energy efficiency -- it vastly reduces the amount of energy (and resulting emissions) required to support our economy."
For example, making aluminum from scrap uses 96% less energy than from virgin minerals, while making iron and steel from scrap requires 74% less energy. Two thirds of the steel produced in U.S. is now made from recycled materials.
Progressive Investor identifies the following trends benefiting the Recycling Industry:
-- The higher energy costs go, the more economically valuable are recycled materials. Example: energy accounts for 20-30% of the cost to make metals such as aluminum and zinc. -- Metal prices are rising sharply from strong demand - partly from growth in India and China -- creating strong economic incentives to recycle all kinds of metals -- Recycling benefits from the attention to climate change for its ability to reduce the energy intensity of manufacturing and methane generated by landfill waste. -- Growing recognition that natural resources are scarce, finite, and increasingly expensive to mine. Example: virgin copper and zinc supplies could be completely exhausted within decades. -- Rising concerns about pollution from discarded electronics The report profiles the World's Top Recycling Stocks, including: -- Casella Waste Systems (Nasdaq: CWST): regional solid waste company; strong focus on recycling. -- Metalico (Amex: MEA): small cap metals recycler. -- Schnitzer Steel (Nasdaq: SCHN): vertically integrated scrap metal recycler and steel manufacturer. -- LKQ Corp (Nasdaq: LKQX): dominates the U.S. automotive replacement parts market. -- Interface (Nasdaq: IFSIA): leading carpet tile manufacturer uses a high percentage of recycled material. -- Sims Group (SGM.AX; NYSE: SMS): the world's largest metals and electronics recycler.
Investing in Recycling is a succinct overview of the industry and the major opportunities for investors on the publicly traded and private equity sides.
The sections are: The State of the Recycling Industry The Recycling Investment Landscape Meet the Recycling Leaders Analyst Conversation: Investing in Recycling Recycling Industry Charts & Tables The contributing analysts are: Eric Prouty, Senior Analyst, Cannacord Adams Matt Patksy, Managing Director, Winslow Asset Management Jon Forster, Investment Manager, Impax Asset Management
About Progressive Investor
Progressive Investor is a monthly newsletter that guides investors and analysts toward green investments. Published by SustainableBusiness.com, it covers all green business sectors, including renewable energy, green building and healthy lifestyle.
http://www.sustainablebusiness.com/index.cfm/go/progressiveinvestor.main
Contact: Rona Fried +1-631-423-3277, rona@sustainablebusiness.com
Web site: http://www.sustainablebusiness.com
Rona Fried, +1-631-423-3277, rona@sustainablebusiness.com, for Progressive Investor
Comments