Cleantech Report: Recycling Industry Offers Recession Proof Investing

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, [phone], , for

Progressive Investor



Web site:  http://www.sustainablebusiness.com/

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