2020年2月1日星期六

The Common Sense (and Profitable) Approach to Climate Change

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February 1, 2020

The Common Sense (and Profitable) Approach to Climate Change
By Tim Melvin

Dear Reader,

This year's election is going to feature a lot of talk about climate change and the need for renewable energy.

While we will hear all about the imminent danger of us all being roasted to death and then drowned by the rising seas, the truth is that I've heard so many climate claims over my lifetime that I'm frankly skeptical.

When I was in high school, the settled science was that we would all freeze to death.

In fact, according to the climate scientists of the 1970s, we should all already be popsicles.

In the 1930s, it was back to be roasted alive by increasing temperatures. And so forth and so on...

I don't know what the climate will do over the next century, and as you know, I'm not big on predictions.

Given all the variables that go into climate, I'm not sure anyone, anywhere can build an accurate long-term model.

While some will read this and brand me as that most demonic villain - a climate change denier - nothing is farther from the truth.

Of course the climate is going to change.

It always has, and it always will. I'm just not sure how it will change.

Anyone who claims they know for sure what the climate will do in the next century is probably blowing smoke up places smoke shouldn't go for political reasons.

You Can't Stop Progress

Does that mean we should give up on renewable energy and just burn carbon?

No, that would be idiotic.

Clean air and water are very important to me.

They make the quality of life better and are all-around healthier for all of us.

Once the infrastructure is in place, things like solar and water are pretty low cost, cleaner alternatives that will be much more effective than burning carbon resources that, at a minimum, pollute the air and water.

Once we solve the remaining storage and transmission issues, we should target 100% renewable energy in the United States.

That's not viable yet, but it will be someday.

If I were an elected official, I would be pushing for a Manhattan Project-sized endeavor to solve those problems and make it happen.

Unfortunately, I'm too smart and not arrogant enough to run for office, and the only time I hear from government officials is when my taxes are due.

Pennies from the Heavens

The global trend towards renewables is happening, and it should be.

This will be a long-term trend that is going to make a lot of people a lot of money if they buy right and sit tight with renewable energy stocks.

Buying right means paying relatively low multiples of cash flows or asset values.

Right now, trading at less than six times earnings Canadian Solar Inc. (NasdaqGS:CSIQ) fits the bill.

I usually avoid Chinese stocks, but I'm going to make an exception for Canadian Solar.

This company is active in all aspects of the solar industry, including utility-scale projects, commercial solar installations, and panels for use at individual residential homes.

Second, in addition to the U.S. and European markets, they have operations in China and India - two of the countries with the most massive carbon footprint on the planet.

You'll also find the company in many of the smaller Asian countries that are way behind the curve when it comes to renewable projects and should be increasing spending in the years ahead.

The growth opportunities in front of this company are spectacular, and I'm paying a discounted multiple to participate.

My decision to buy a Chinese company was helped a great deal by the fact that Canadian Solar just added Lauren Templeton to the board.

She is the niece of legendary global investor John Templeton and learned the craft from a master.

I trust in her ability to double and triple check the accounting and practices of this particular Chinese company.

Common Sense Answers to Big Questions

Is climate change real?

Of course, it is. I'm just not that convinced we know how it will change.

Is the ocean-going to swallow New York and Miami anytime soon?

Doubtful.

Is clean air a good idea anyway?

Yes.

Can we make money from climate change and renewable energy?

Yes. Yes, we can. Buy renewable energy stocks when they are as cheap as Canadian Solar is and then just sit tight.

The Potential in Dark Burst Technology

With that in mind, there's one more company in the industry that has incredible profit potential.

It's a small company based out of California that's signed a game-changing deal with America's number-one residential solar installer.

It's a massive deal not only because this company ships 1.1 million solar panels every year, but also because this company has a patent on a device that could revolutionize the way we think about solar as an energy source.

It's called "Dark Burst" technology, and thanks to this deal, all of their panels can now be fitted with these devices, giving them the potential to grow their $316 million in yearly revenue by as much as 52%. With this deal in place and partnership agreements lined up with a who's-who of solar panel makers and installers, there's a lot to be excited about for the future.

You can find out all about this company, their incredible breakthrough technology, and the amazing profit opportunity available to you with just one click, right here.

Have a great weekend,



Tim Melvin


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