Cleantech Report: Recycling Industry Offers Recession Proof Investing
01 Avril 2008 - 3:00PM
PR Newswire (US)
NEW YORK, April 1, 2008 /PRNewswire-FirstCall/ -- 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 $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 631-423-3277, DATASOURCE: Progressive Investor
CONTACT: Rona Fried, +1-631-423-3277, , for Progressive Investor
Web site: http://www.sustainablebusiness.com/
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