8/14/2019 Top 10 Green Industries http://slidepdf.com/reader/full/top-10-green-industries 1/6 Top 10 Green Industries Read: Top 10 Green Industries Top 10 Green Industries If you are looking for ways to put a little green in your wallet by putting some green in your portfolio, you might be surprised at the wide range of offerings available for your consideration. Let's take a look at 10 interesting areas, from the well known wind and solar sectors to less well known green industries such as organics and waste management, which are all highlighted in the following slides. Read: Water 1.Water One of the most important natural resources we have is water; it is crucial to our survival. However, there has been a lot of fear that we are running out of clean water sources as the global population continues to grow. For investors, this has created a clear opportunity to invest in companies that collect, clean and distribute water. The largest water utility company in the U.S. is Aqua America (NYSE:WTR), which supplies water to nearly three million people. Another company in the industry, on the purification side, is ITT Industries (NYSE:ITT), which produces water purification systems that help to make water drinkable. To see the power of water, one needs look no further than China's massive Three Gorges Dam project. While this $25 billion structure on the Yangtze River will be the largest hydroelectric power station in the world, it's sure not the only one. Hydropower involves a lot of technology, a lot of infrastructure and a lot of power-hungry customers. Every one of those
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8/14/2019 Top 10 Green Industries
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Top 10 Green Industries
Read: Top 10 Green Industries
Top 10 Green IndustriesIf you are looking for ways to put a little green in your wallet by putting some green in your
portfolio, you might be surprised at the wide range of offerings available for your
consideration. Let's take a look at 10 interesting areas, from the well known wind and solar
sectors to less well known green industries such as organics and waste management, which
are all highlighted in the following slides.
Read: Water
1.Water
One of the most important natural resources we have is water; it is crucial to our survival.
However, there has been a lot of fear that we are running out of clean water sources as the
global population continues to grow. For investors, this has created a clear opportunity to
invest in companies that collect, clean and distribute water. The largest water utility company
in the U.S. is Aqua America (NYSE:WTR), which supplies water to nearly three million
people. Another company in the industry, on the purification side, is ITT Industries
(NYSE:ITT), which produces water purification systems that help to make water drinkable.
To see the power of water, one needs look no further than China's massive Three Gorges
Dam project. While this $25 billion structure on the Yangtze River will be the largest
hydroelectric power station in the world, it's sure not the only one. Hydropower involves a lot
of technology, a lot of infrastructure and a lot of power-hungry customers. Every one of those
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areas holds potential opportunities for investors. On the power side, two publically traded
producers include PG&E Corp. (NYSE:PCG), which has one of the world's largest hydro
operations and Idacorp (NYSE:IDA), which has 17 hydro projects.
Read: Wind
2.Wind
Windmill farms are sprouting up around the world. Australia, Europe and the United Statesare all investing in wind as a leading source of renewable energy. The business of wind notonly includes the generation and sale of power, but also the design and construction of windturbines. Few countries rely on wind for more than a tiny fraction of their power generationneeds, but many countries are interested in the possibility.
If this is of interest to you, look for wind farm companies that sell wind-generated energy orcompanies that produce the windmill technology. There are few pure play stocks that deal in
wind in the U.S., which will likely change over time, but companies like General Electric (NYSE:GE) have a presence in this market.
Read: Solar Energy
3.Solar EnergySolar energy is powering homes, buildings and a variety of other items from lights to radios.As the cost of fossil fuels continues to rise and their availability continues to decline, thefuture looks bright for solar energy.
If you think the sun is just starting to rise on this industry, the companies to look at are those
that produce solar energy panels, which will benefit if homeowners and businesses adoptsolar technology. Two of the leading producers of solar panals are Evergreen Solar(Nasdaq:ESLR) and Sunpower Corp. (Nasdaq:SPWR), which develop, manufacture and
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sell panels and components and will directly benefit from the increased adoption of solarpower.
Read: Fuel Cells
4.Fuel CellsThe U.S. government hopes that hydrogen powered cars will be commonplace by 2020. Ifthis technology works, there are millions of cars - and millions of consumers - waiting for it.
If you think this type of energy is the wave of the future, there are a few companies thatoperate in the space and are developing fuel cell technology. For example, some of thelargest producers include Ballard Power Systems (Nasdaq:BLDP), which produces cells thatcan be used in many products, from cars to power plants. Another example is Fuel CellEnergy (Nasdaq:FCEL), which focuses on providing power options to commercial andindustrial facilities.
Read: Efficiency
5.EfficiencyJust about every aspect of efficiency is good for the environment. Energy efficientconstruction and appliances reduce home energy use and energy efficient cars reduce ourdependence on oil. From efficient lighting to creating the paperless office, innovativecompanies are developing products that maximize the benefit we get from the resources thatwe use. Efficiency is the watchword of the day and it represents developing field that willcreate the technologies that we will use tomorrow. (For more insight, see For Companies,Green Is The New Black .)
This area is a little more difficult to invest in as there are no real pure play companies dealingstrictly in efficiency. However, there are some companies that have done a great job at
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leveraging efficiency such as General Electric with its Ecomagination business unit.
Read: Waste Reduction
6.Waste ReductionRecycling has become a standard practice for many people in recent decades. The stuff thatwas formerly thrown away and trucked off to the landfill is now turned into useful products.Most people are aware that household products such as paper, metal and glass arereprocessed and reused, but few stop to consider the business behind these endeavors. Ofcourse, these aren't the only items that are reused; waste oil, vegetable oil, batteries, cellphones, computers and even parts from cars can have a second life. Recycling these itemsinvolves a business enterprise humming along in the background. (To learn more, see Less Trash For More Cash .)
In terms of your portfolio, waste management companies with a large base of recyclingfacilities may be of interest including companies such as Allied Waste Industries (NYSE:RSG) and Waste Management (NYSE:WMI).
Read: Pollution Controls
7.Pollution Controls
Reduction is the key term here. From reducing green house gas emissions on industrialpower plants to minimizing the emissions that come out of the tailpipe of your car, thepollution control industry is on the rise. Every time legislation mandates an improvement inthe amount of some harmful chemical that can be released into the environment, thepollution control industry responds.
If this is something you are concerned about, look for companies that develop pollutioncontrol technologies such as Fuel-Tech (Nasdaq:FTEK) and Versar (AMEX:VSR).
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Read: Organics8.OrganicsOrganic farms eschew the use of pesticides, engage in sustainable farming practices andsell products that are often healthier to eat than the stuff composed of three-syllable wordsthat you can't pronounce and a shelf-life measured in decades. They also engage in animalmanagement practices that avoid the use of hormones and antibiotics, keeping thosechemicals out of the food chain and out of the ground and water surrounding the farms. It'sgood food - and good business.
With U.S. organic food sales reaching $17 billion in 2006, there is a huge market for organicfood producers and grocery stores. Some of the biggest organic food companies includeWhole Foods Markets (Nasdaq:WFMI), United Natural Foods (Nasdaq:UNFI) and NBTY
(NYSE:NTY) among others.
Read: Best In Class
9.Best In ClassFor many companies, the urge to go green is a relatively recent phenomenon. Like changeeverywhere, some firms adapt and some don't. Investment managers in the "green" spacehave begun to categorize firms by the place they hold along the "green" spectrum. Take oilcompanies for example. One would be hard pressed to think of these firms as green, and forthe most part, they aren't. But if you take a closer look at their business models, it is easy tosee that some are greener than others. Choosing the firms with the best environmentalrecords and practices is another way of "going green."
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Read: How to Grow a Green Portfolio
10.How to Grow a Green Portfolio
If a "green" investment catches your eye, there are plenty of ways to find a place for it in
your portfolio. Mutual funds, exchange-traded funds, stocks, bonds and even money marketfunds that focus on the environment are all available.
Editor's Note : Please note that the companies mentioned in this slideshow are examples tohelp you begin your research, not investment recommendations.
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