This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

China's Dirty Job Could Benefit Foreign Firms

If enough CO2 emitters -- steel mills, cement processors and power generators, to name the most likely clients -- went for the scheme, pipelines could pool storage by linking up underground tanks.

At least four multinationals now active in China should be in a position to help the country with some element of carbon capture and storage. They include U.S.-based Dow Chemical and General Electric. Those who follow industry in China also point to Air Liquide and Alstom, both from France.

They're established firms with elaborate China resumes, namely local partners (key to getting real work in the country) and projects using technology that's akin to carbon capture or storage.

Dow Chemical, which earned $3.7 billion in sales revenue there in 2009, says it will form a joint venture with China's largest coal producer Shenhua Group to build and operate a coal-to-chemicals complex.

GE opened a factory in China in 2006 to make turbines for the country's largest wind farm. The same firm has developed a system to clean coal, requiring less water and a cleaner fuel with fewer emissions.

Air Liquide boasts 60 China factories as of last year, up from eight in 2004. The company that handles gases for industry and health care says it sees demand growing for environmental protection in China and expects more outsourcing to firms of its type. Engineering firm Alstom, with more than 30 joint ventures in China, works on power generation.

Dow Chemical share prices have fallen 30% over the past five years while GE lost 46%. But Dow's prices have largely kept up with the broad market despite lower demand for commodities because of a slow world economy. It also posted a dividend yield of 4%. GE's yield is 3% and investors consider it a steady bet, although its stocks have not kept up with gains in the broad market since the global economic crisis of 2008 and 2009.

Both will do OK if the world economy allows, argues Wojtek Zarzycki, chief investment officer with Optimal Investing in Toronto. "If the landing in China is verified as a soft landing and the Europeans finally and completely come up with a resolution for their debt problems, then these stocks would definitely benefit," he says.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
DOW $49.57 0.65%
GE $25.66 -0.77%
AAPL $128.49 -0.67%
FB $80.89 1.60%
GOOG $573.21 -0.08%

Markets

DOW 18,096.90 -106.47 -0.58%
S&P 500 2,098.62 -9.16 -0.43%
NASDAQ 4,967.1410 -12.76 -0.26%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs