Wednesday, January 17, 2007

Adding Cemtrex to the Portfolio

Cemtrex is up 16% today on heavy volume. The company provides a number of diagnostic tools and devices aimed at helping dirty industries clean up their act and comply with various federal and state regulations.

But what makes this company "sexy" right now, and very intriguing for SRI investors, is its potential involvement in brokering carbon credits between industrialized nations (in Europe in particular) and developing nations like China.

The basic idea is that major companies in developing nations are alloted carbon credits that they can sell for money to establihsed companies in developed nations who - considering their already established plants and technology - would rather buy the credits than have to make changes to their factories to comply with the Kyoto protocols.

It's a good thing for the world in two ways... first, it helps achieve the global goal of reduce CO2 emissions by 6% by 2012... second, it's a way to infuse developing economies with major amounts of capital they otherwise might not have access to... and ensures that they are building greener economies from the ground up.

This could have a tremendous longterm positive effect on the developing nations, and even though it could slow down cleanup efforts in local developed economies, the overall net cleanup effect remains the same.

Cemtrex is currently planning to enter into the Chinese market for carbon credits (which trade on several exchanges around the world already, including one in Belgium and one in Brazil), brokering deals between Chinese and outside companies. Here's an article about this bold move:

This along with 192% earnings growth in 2006 bode well for this stock down the road.


Speculators ONLY: Add Cemtrex (CTEX.PK) to the portfolio at .0070, and place a trailing stop under this at 40%, meaning we'll sell if it closes under .0042 at any point going forward.


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