Investing in a Green Future: Renewables and Cannabis Continue to Gain Young Investor Traction
Point Roberts, WA and Delta, BC - July 15, 2019 (Investorideas.com Newswire) Investorideas.com, a leading investor news resource covering cannabis, hemp and solar stocks releases a sector snapshot reporting on green investing trends from renewable energy to cannabis and how millennial investors are driving this movement.
TD Ameritrade's recent trading data reflected this green investing trend; "Millennials with TD Ameritrade accounts favored buying Tesla, Canopy Growth, Beyond Meat, Uber and Nvidia in June, according to new research from the brokerage platform. What's interesting - and perhaps alarming to the hardcore over 40-year-old investor - is that all of these companies except for Nvidia are solidly unprofitable. Moreover, it's wildly unclear when the likes of Tesla, Canopy Growth, Beyond Meat and Uber will turn sustainably profitable."
This speaks to the many uptrends we've seen in solar and renewable energy stocks, along with cannabis and wellness companies as younger investors seem to focus more heavily on concept and environmentalism first, and profitability second. But they may be seeing a greener future as they continue to bet on the sector.
According to a report on the global Solar Panel Market from Zion Market Research, the solar market accounted for USD 30.8 billion in 2016 and is expected to reach USD 57.3 billion by 2022, growing at a CAGR of 10.9% between 2017 and 2022.
The report states, "the Global Solar Panel market is expected to witness positive growth within the forecast period on account of increasing government incentives for the adoption of renewable energy alternatives for power generation. A solar panel uses solar energy to cleanly and efficiently produce electricity. For many years solar was considered as the main pillar of a future renewable energy based system. Demand for a solar panel is increasing prominently all over the world."
SinglePoint Inc. (OTC: SING), a technology and acquisition company that provides mobile payments, ancillary cannabis services and solar in the United States has been betting on both aspects of this green strategy to ensure a synergistic future. For the hemp component, the company recently announced signing a large contract to supply more than 275,000 pounds of premium hemp flower over a period of 15 months, while the company's solar subsidiary, Direct Solar has been developing a commercial solar lending solution to serve customers that own and/or manage commercial properties.
Direct Solar will be one of the first companies to offer this type of lending solution and is expected to launch in the next four to six weeks.
"Currently there are a lot of residential lending solutions as well as large scale lending for solar farms and high megawatt projects. We have yet to find a solution that will finance projects in the small to medium commercial space. Our financing solution will provide these customers with quick funding turn around and require no personal guarantees. We believe there is enough projects for us to turn $100 Million dollars in lending over the next 9-12 months," states Pablo Diaz, Founder and CEO of Direct Solar.
"This is a massive opportunity to fill a huge gap in the market. There has not been a solution we've found like ours simply because the current model means you are either a lender or installer. Direct Solar being one of the only solar brokers in the market means we can work with the customer to find the right installer and the right lender. Matching these two together is a win-win for everyone involved," states Brian Odle, National Finance Director, Direct Solar.
Coming off of a major month (May 15, 2019 – June 15, 2019), Direct Solar closed $1,709,460 in solar installs. This revenue should generate approximately $803,769 in gross and $361,541 in net. Additionally, the company added three new major service areas with a fourth on the way. This has all been residential driven. The addition of the commercial solar opportunity should dramatically increase the quick growth the company has already been experiencing.
These numbers quickly put Direct Solar on the path to profitability from a cash flow standpoint. Management from SinglePoint and Direct Solar are very excited to see the continued growth of the solar business through multiple avenues including commercial.
Direct Solar, also recently announced that the company has signed on to become the exclusive solar marketing partner to support the various fall sports programs for 47 Texas schools across Dallas/Fort Worth, Houston, Austin and Waco. Between August 1st and December 31st, 2019, any solar systems that are sold within these school districts will receive a $250 donation to the Fall Sports Booster Program at the school.
"We appreciate the support we have received from Texas. We wanted to find a way to give back to the communities that we have been doing business in and felt what better way to show that support by donating to the Fall Sports Booster Programs," states Allen Kruse, Marketing Director of Direct Solar.
Canadian Solar Inc. (NASDAQ: CSIQ), one of the world's largest solar power companies, recently announced that its wholly owned subsidiary Recurrent Energy, LLC has signed a 15-year power purchase agreement with Anheuser-Busch, the beverage company who late last year signed an agreement with Tilray, for 310 MWp/222 MWac of electricity from its Maplewood solar project.
This landmark contract is the seventh largest commercial and industrial power purchase agreement for solar energy signed in the entire world to date, according to data supplied by Bloomberg New Energy Finance. The PPA, which marks the early achievement of Anheuser-Busch's 2025 Renewable Electricity goal in the United States, also represents the US beverage industry's largest single purchase of solar energy.
"The signing of this power purchase agreement with Anheuser-Busch, the US beer industry leader, demonstrates Canadian Solar's ability to meet the needs of a diverse array of corporate customers. We're honored to supply affordable clean energy to a C&I customer base spanning the sectors of academia, transportation, traditional energy, and now food and beverages," said Dr. Shawn Qu, Chairman at Canadian Solar. "Looking at publicly announced deals, we are proud to be the leading solar developer in the Texas market, with over 1.3 gigawatts of signed electricity contracts for energy generated within ERCOT's service territory."
The Maplewood solar project, located in Pecos County in the Permian Basin of West Texas, will power the equivalent of 55,000 homes with clean electricity when it begins operations by 2021. Canadian Solar's high efficiency poly modules are likely to be used for the project.
"We take immense pride in being good stewards of the environment and are excited to announce that by 2021 our entire portfolio of beers will be brewed by using 100 percent renewable electricity from solar and wind power," said Ingrid De Ryck, Vice President, Procurement and Sustainability at Anheuser-Busch. "Through our new partnership with Recurrent Energy, we will be able to complete one of our 2025 U.S. sustainability goals four years ahead of schedule."
Some companies like The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTC: TGODF), have built their whole company around "green initiatives" with their main focus being on recyclable packaging, LED efficient lighting and hybrid facilities which allow for absorption of natural sunlight, environmental advocacy as well as organic certification. The company recently announced that its flagship Valleyfield, QC facility has received its organic certification from Pro-Cert, an internationally recognized leader in organic certification.
Once completed, TGOD's Valleyfield facility is going to be the world's largest organic cannabis facility at over 1.3 million square feet. This Pro-Cert recognition adds another certification to the Company's portfolio, in addition to TGOD's already certified organic growing facilities in Canada and Europe and shows TGOD's commitment to cement its position as the leading organic cannabis brand globally.
"It's exciting to reach new milestones as we begin commercial production. Growing certified organic cannabis at scale is a highly complex process which has taken time, great care and extensive research to refine. Each of our facilities goes through a robust certification process, in line with the high standards we have set, ensuring operational excellence at all stages," commented Brian Athaide, CEO of TGOD. "The proprietary methods our team has developed leverage the benefits of growing in living soil and guarantees the organic integrity of the products throughout the entire production chain."
Pro-Cert's certification programs are ISO 17065 compliant and accredited, providing global recognition and international access to the products and brands they certify. The certification process includes validation of inputs, production methods and preparation procedures according to Canadian organic product regulation.
While solar may be the future for many, there is also some movement in outdoor operations to reduce energy needs as 48North Cannabis Corp. (TSXV: NRTH) (OTC: NCNNF) announced that it has completed the planting of its first outdoor cannabis crop at its Good:Farm, Canada's largest outdoor organic cannabis cultivation facility (3.7 million sq. ft. of cultivation space) in Brant County, Ont.
48North has successfully planted more than 250,000 cannabis seeds at Good:Farm. At the farm, 48North has planted 10 unique cultivars proven to be successfully grown outdoors; both high-THC and high-CBD strains were selected for planting. The Company expects two harvests annually at the Good:Farm. The first harvest is planned for late-August and will be exclusively the Company's auto-flowering strains; the second harvest, of photoperiod plants is planned for mid-October.
Good:Farm, Canada's first and largest outdoor organic cannabis facility has the potential capacity to yield more than 40,000 kg of dried cannabis, at what 48North expects to be the lowest cost per gram in the country.
"Planting nearly 100 acres of organic cannabis outdoors was a significant accomplishment for the organization, relying on both established agricultural practices and innovative cannabis production techniques. Our team of expert farmers and growers ensured this ground-breaking task was a success," said Jeannette VanderMarel, co-CEO of 48North.
Good:Farm has a number of strategic advantages, including ultra-low-cost cannabis as well as environment-friendly and energy-efficient production. In addition, the farm's production will help address the current national shortage of recreational cannabis.
There are a myriad of factors driving millennial investors towards a ‘greener outlook', from climate change, rising energy demands, the cost of plastics and investor awareness, but the main element seems to really be investing in a better future, even at the risk of short term profitability.
"They are buying what they know - but they should research these companies," JJ Kinahan, Chief Market Strategist at TD Ameritrade said on Yahoo Finance's ‘The First Trade' which shows the disconnect between the past 30 years of investing and the future of investing. While previous styles of investing showed research being heavily based only on financials and profitability first, the big picture now is just as much a priority, as companies like Tesla and Canopy Growth have shown. For Millennials, it's their future and they invest in what they spend on, which is the mantra of one of the best loved investors in our history, Warren Buffett.
For investors following cannabis stocks, Investor Ideas has created a stock directory of publicly traded CSE, TSX, TSXV, OTC, NASDAQ, NYSE, ASX Marijuana/Hemp Stocks
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