Is There Profit From Environmental Guilt? Carbon Credit or Emissions Trading …

March 19th, 201210:25 am @


For environmentally conscious consumers or businesses, carbon credit or
emissions trading stocks Greenlite Ventures (OTC: GLTV),
Just Energy Group (NYSE: JE) and CO2 Group Limited
will provide services that will help assuage any guilt over
a 21st century lifestyle but have such stocks produced any profits for
investors? After all, I have noticed that some airlines now have a box for guilt
stricken passengers to check where they can have the privilege of paying a few
extra dollars to offset the carbon emissions created by their trip (Full
disclosure: I never check such boxes). This appears to be the business model or
type of customers that Greenlite Ventures (GLTV) is trying to lure in while Just
Energy Group (JE) and CO2 Group Limited (COZ) will benefit on any restrictions,
carbon taxes or incentives to reduce carbon emissions passed by governments. So
should you be investing in carbon credit or emissions trading stocks to make a
profit or should you leave these stocks to those who deem themselves more
“environmentally conscious”?

Greenlite Ventures (OTC: GLTV)

Greenlite Ventures is a carbon offsets marketing company that helps both
companies and individuals to offset their carbon footprint through the purchase
of carbon credits. On Friday, fell 31.82% to $0.300 (GLTV has a 52 week trading
range of $0.20 to $0.85 a share) for a market cap of $7.31 million but the stock
appears to be up around 20% since the start of the year. Nevertheless, investors
should note that there have been a number of transactions up to the $25,000
level to promote Greenlite Ventures. Otherwise, Greenlite Ventures has recently
announced the commencement of sales of voluntary carbon offsets through its
Website at
However, Greenlite Ventures has thus far reported no revenues; net losses of
$69k (year ended March 31, 2011), $68k (year ended March 31, 2010) and $51k
(year ended March 31, 2009); and $8k in cash to cover $223k in current

Just Energy Group (NYSE: JE)

Just Energy Group sells natural gas and/or electricity to 1.8 million
residential and commercial customers under long-term fixed-price,
price-protected or variable-priced contracts. In addition, Just Energy Group
offers “green” products through its JustGreen and JustClean programs where a
customer has the option of having all or a portion of his or her electricity
sourced from renewable energy sources. On Friday, Just Energy Group closed at
$13.59 (JE has a 52 week trading range of $11.72 to $13.70 a share) for a market
cap of $1.89 billion and the stock has only been trading since last February.
Hence, investors interested in Just Energy Group’s financials will need to refer
to the company’s website and should note that the company has reported a net
loss of $49.7M for the first nine months of fiscal 2012 verses net income of
$315.8M for the same period the year before. In addition, Just Energy Group has
reported revenues of $2,953,192k (fiscal 2011), $2,299,231k (fiscal 2010) and
$1,899,213k (fiscal 2009) along with net income of $515,347k (fiscal 2011) and
$231,496k (fiscal 2010) plus a net loss $1,107,473k (fiscal 2009). However,
investors would probably be most interested in knowing that Just Energy Group
has a forward annual dividend of $1.25 for a forward dividend yield of 9.30% but
it also has an “F” rating with the Better Business Bureau and has had run-ins
with regulators both in the US and Canada mostly over deceptive sales practices.

CO2 Group Limited (ASX: COZ)

CO2 Group Limited is an Australian company that establishes and manages
forest carbon sinks intended for registration under formal emissions reduction
schemes. On Friday, CO2 Group Limited closed at A$0.180 (COZ has a 52 week
trading range of A$0.12 to A$0.28 a share) for a market cap of $77.30 million
plus the stock is up 12.5% since the start of the year and up 33.33% over the
past year but the stock is down 50% over the past five years. Investors should
be aware that last November, CO2 Group Limited’s Directors of the Company did
not recommend the payment of a dividend for the fiscal year ended September 30,
2011. Investors should also be aware that CO2 Group Limited has reported
revenues of A$24,000k (fiscal year ended September 30, 2010), A$22,000k (fiscal
year ended June 30, 2010), A$15,000k (fiscal year ended June 30, 2009) and
A$12,000k (fiscal year ended June 30, 2008) along with net losses of A$3,000k
(fiscal year ended September 30, 2010) and A$4,000k (fiscal year ended June 30,
2010) and net income of A$1,000k (fiscal year ended June 30, 2009) and A$2,000k
(fiscal year ended June 30, 2008).

The Bottom Line. I might take a closer look at Just Energy
Group (JE) because of its dividend (but its seeming reputation for “unjust”
business practices are a cause of concern) while avoiding promoted Greenlite
Ventures (GLTV) and Australia based CO2 Group Limited (COZ).

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