Since the carbon tax is out... the market has been down over 1% Still some winners. Particularly in the geothermal industry. Some stocks like GDY flying to the moon. Only 15 cents a few weeks ago? Now at over 40c. Feel free to share some shares that you think would benefit from this tax. I would like to say the only real winner here is the government. Disclosure: I do not hold GDY
"There will never be a Carbon Tax under my government" slippery but true "pollie speak " .... there is a carbon tax OVER my government ....
No country taxed their way into prosperity but loads of countries have taxed their prosperity away - to take money from the profitable mining sector to redistribute that wealth to unprofitable sections means the mining sector has less money to maintain its profitability and keep employing people - so eventually the money will run out, the jobs will dwindle and there is no profit left for develpoment and reinvestment. This carbon tax is just another way to distribute wealth
Seeing as this thread is posted in Stocks & Derivatives, not General Discussion, please keep it on topic, which is "Feel free to share some shares that you think would benefit from this tax." No need to have multiple threads on the merit of the carbon tax, this thread is purely about the investment angles. The first shares I would look at are alternate energies, like ASX:CFU.
Will Australia mine less coal because of the carbon tax? If the answer is yes mining shares can suffer, but if not the coal will be burned somewhere and will not reduce carbon emission on the planet.
Clean energy stocks are the next tech bubble - within the ASX at least. Investors are flocking to these companies, but many are in their infancy still and will not be able to use the increase in capital efficiently. Many have not yet delivered much in output yet. What goes up, must come down.
That's it... The Carbon Tax was only ever about a massive new derivatives market, so watch the stocks of the banks that I mentioned in my earlier post, along with G.E.
Except electricity use, which has been proven beyond doubt to increase massively over the last century, in both price and amounts used. In the next ten years, those selling energy derived from polluting commodities that rise in price will find it very difficult to compete with those companies that sell pollution free energy derived from FREE energy inputs. It's a no brainer.
That's why I prefer a tax rather than a trading scheme. At least a tax goes to the citizens, not share holders.
If you mean it requires someone with no brain to think of it, I agree with you. The green bubble peaked a couple of years ago, burst and is on it's last legs now. The smart money has moved on. This thing in Oz won't last.
Eastern Star Gas shares have jumped 40% today in light of a takeover bid by Santos http://www.theaustralian.com.au/bus...er-nsw-gasfields/story-e6frg9df-1226096971799
Actually, the reality may very well be the opposite. All things being equal, renewable energy sources tend to be much more expensive per kW than coal sourced power.
Today possibly, what about in 10 years when coal is $500 per ton? 10 years ago, solar panels cost about $6-7 per watt, today the spot price is about $1.20-1.70 per watt. The energy needed to actually produce solar panels has reduced by 50%-90% as well. All things being equal, using the last 10 years as a guide, coal power will be the same price as PV in 5 years and double the price in 10. How about you invest $1000 in each of the 10 best performing coal power companies today, and I'll invest in the 10 best performing renewable energy companies and we'll see which of us does better over 10 years?
No matter what the price of energy per kW is from renewable technology in 10 years time, it will be price comparable with energy sourced from fossil fuels. The market will always dictate the price, and I can guarantee that you will not save any appreciable amount between the two. This situation is definitely compounded when the government, who stands to loose revenue, owns the fossil fuel resource. Just a fact of life!
The market for residential power will be in the form of decentralized power generation at the residence. If a solar system that costs $7500 will provide all your needs at home, why would anyone pay $2500 per year and rising to a coal energy company, year after year after year? Add a few more panels and now the fuel for your new electric car is free instead of getting gouged at the bowser. How can fossil fuel possibly compete with this scenario? Really, I want to know how you figure that the advancements in the efficiency and cost of renewable energy sources will stop dead and remain comparable in price to an energy source that constantly has to be mined from dwindling resources.
