Saturday, June 13, 2009

Carbon into finance?

The world are discussing more and more on environmental related issues currently. It was estimated that the green economy is taking shape and will influence the US economy in the near future. Never been green economy are being given so much attention before.

US to stimulate economy through green? New workfoce and group to be focused on this area?

These are the question we need to answer. A particularly interesting stuff will be carbon finance.

Carbon finance is a new branch of Environmental finance. Carbon finance explores the financial implications of living in a carbon-constrained world, a world in which emissions of carbon dioxide and other greenhouse gases (GHGs) carry a price.

Financial risks and opportunities impact corporate balance sheets, and market-based instruments are capable of transferring environmental risk and achieving environmental objectives. Issues regarding climate change and GHG emissions must be addressed as part of strategic management decision-making.

Friday, June 12, 2009

Watch Out Malaysia Related Water Stock

Following commenting on Singapore water stock Bio-Treat, I shall work on analysing Malaysia related water stock. Particularly in my mind is PNSB, SYABAS, ABBAS, SPLASH. These companies were controlled by GAMUDA (KUL:GAMUDA) and KPS (KUL:KPS).

Bio-Treat (SIN:B22)

I am currently heavily vested on SGX listed Bio-treat (SIN:B22), which involved in water treatment, using BMS Biological Process Technology.

I observe the chart of Biotreat is on a uptrend and is looking strong. The prospect of water tarrif from the soon-to-be completed 15 BOTs means:
- cessation of fund channel to the construction of the BOT
- increase in profit : from the company report, the water treatment from 15 BOTs potentially can generate 300RMB per year or 7 cents per share based on the latest shares in the market.
- bond holders will be more willing to continue the loan
- with improved liquidity, they have more capital to bid for projects and help in generating more profit.

World Trade Expo is going to be held in China in 2010. Another mega event that should spur more spending. As such, from now till 2010, China domestic spending will continue to improve.

Water Tarrif in Beijing is also on the uptrend.

Will continue to buy on dip if it ever happens. The share appears to be on uptrend, slowly and surely. Everyday seems to go up by 0.5 cent.

Hi world

I just joined this blog sphere and hope to contribute my view on financial market and share my analysis.