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Goldman Sachs Boosts Stake in Climate Exchange plc (LSE:CLE)

Yesterday, Mike Temple posted the following comment on our latest post about investing in climate change:

"Dear Charles

I think you have made a prescient call by recommending Climate Exchange PLC.

Trading volumes in European carbon are growing almost daily....ECX has now captured 90+% of all exchange-traded CO2...Soon, the rest will migrate to them...Soon, again, OTC volume should move over to the transparency of an exchange.

Finally, Climate Exchange PLC's fortunes should double again if/when the US ever adopts a cap-and-trade system ala the EU. Rumors are running rampant that Bush's State of the Union address on Tuesday may just include a brave new view towards GHG regulation.

If not, it is clear that the Democratic Congress is going to offer up many bills to enact GHG regulation. Bush may veto, but he is a lame duck, and all the candidates for 2008 are going to be pro-regulation of some sort...McCain, who is the Republican front leader today, is in this camp. Whoever the Democratic candidate is, he/she will be similarly inclined to take action.

So, the political momentum is not in doubt...Just a matter of whether anything substantive can or will be enacted in this administration.

Moreover, there are rumors that Goldman Sachs has increased its stake in Climate Exchange PlC.

The next year (if not next week) should be quite interesting for Climate Exchange PLC"

Thank you Mike on behalf of all of our readers for the update. I did a bit of poking around following this comment and found out that the rumor is no longer a rumor - Goldman Sachs nearly doubled its stake in CLE on Friday from 10% to 19% (props to Point Carbon for breaking the news on this).



As a result, Climate Exchange (LSE:CLE) closed up 5.81% on its Thursday closing price. Let's see what happens to the stock over the next week. As I've said before, there could be great things in store for CLE, and apparently the most successful investment bank in the world agrees.

Buying CLE should not be a problem for our European readers. As far as our North American readers are concerned, not everyone has access to overseas trading through their basic brokerage packages...that's a shame because London's AIM has great things to offer alt energy investors. Not to worry though, there's plenty of good stuff happening on this side of the pond as well!

DISCLOSURE: I don't have a position in CLE.

DISCLAIMER: I am not a registered investment advisor. The information and trades that I provide here are for informational purposes only and are not a solicitation to buy or sell any of these securities. Investing involves substantial risk and you should evaluate your own risk levels before you make any investment. Past results are not an indication of future performance. Please take the time to read the full disclaimer here.


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Comments

Charles

Thank you for your kind words.

Another interesting "carbon story" on Friday was Morgan Stanley's announcement that they have purchased a 33% stake in a Miami, Florida-based investment house, MGM International, who is currently sourcing CDM credits in the developing world...While no price was disclosed, some metrics on MGM's pipeline of business was disclosed.

This transaction might augur well for the fortunes of another company you mentioned, Ecosecurities.

For full disclosure, I do own stock in both CLE.L and ECO.L.

Hey hey this article on the Climate Exchange was great information. But you should tell your readers that there is an ADR trading OTC here in the states - CXCHF. Get it while the gettin is good. How long 'til GS takes this to the big board?

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