Is the first thing you are thinking “Solar doesn’t make money”. Well, that’s what I thought too until I ran into a company called Xantrex.  It trades on the TSX under the sympol XTX.  The company produces technology and products which helps convert green-generated energy into a usable resource. They recently inked a deal for about $15 million and change to provide this stuff. Check the story out here.  If you dig a little deeper, you will find they have some other recent orders (3 multi-million deals since March).

When this story came out, the stock jumped from around $6.50 Thursday morning, to close  at about $8.50.  Today, it jumped another $0.40 and currently sits at $8.90, and I don’t think it’s quite done yet.

I’ve always thought investing in green energy would be a solid play in the future.  However, the common stuff I hear is that the technology out there isn’t good enough to make money.  I’ve especially heard this about the solar industry.  BUT, now we stumble on this company which is generating a lot of sales in Europe, which I believe is ahead of us in the game of green-a-fying, and is doing it in  solar.

As an investor, this is what I have been waiting to find, and I would make a move on the stock.  My guess is that this company is going to start to pick up steam as word spreads on them as well, and soon the masses will start getting behind it.  Look for a positive movement in the near future… keep an eye on it next week.

TO ADD ON!  How has my last stock tip done? About a week ago I recommended going short on Starbucks when it was at $18.50.  Turns out it would have been a good move, as today it’s sitting at $17.26.  If you had bought a put you probably would have made around 50% on your investment.

This article caught my eye today in the Globe and Mail… It’s about how China is going to strengthen education for young Tibetan monks in order to help them become “patriotic, religion-loving and law abiding.” You can find it here.

It looks as if China is hoping to corral the future generation of young Tibetan men into a group of acceptable citizens. This is a scary thought, because even if the the young men in the schools today don’t accept what they are being taught, what about the the children who enter into these systems at younger ages. In twenty years, will people remember the media attention TIbet has gotten these last few months, and all the issues which have been brought up? By then, the events happening now will just be a fragment of history, but whether or not Tibetan children will learn about them, and in what way is anyone’s guess.

This issue makes me think a lot about the education system people like you and I have come through on our way to where we are today. Is our way so much different than what’s going on in China? As a child, I was taught all about right and wrong. I was introduced to the concept of doing what you’re told. I was punished when I acted in an improper manner, but was given a shiny sticker if I did something right. To put it simply, I was conditioned. I was fashioned and molded to fit into my surroundings, just like China is trying to do to these young monks.

Obviously, there is a huge difference between what we experience here, and what is going on over there, but there’s a reason for that. The world we live in now has been stable for quite some time. Our borders and incomes are secure. Our philosophies have expanded. We accept other religions, races, values and beliefs. We try and support individual differences and unique talents. But still, we sing our national anthems every morning, we learn all about how great the countries we live in are, and we learn only a narrow range of skills in school so we can go out and become what our economies need. I’m not 100% sure about this, but I think in the Ontario economy, we currently have a shortage in tradesmen; men and women who work with their hands (carpenters, electricians, plumbers). I believe this is because these skills are presented in a negative manner throughout our school system. Don’t you remember that do-nothing drop out who quit school and went to work in the trades? Wait a second… why do I think of him as a do-nothing? He’s probably making a pretty penny.

The overall point I want to make with this is that even if what’s going on in China goes against the values we have been taught today, it doesn’t mean we aren’t guilty of applying the same principles inside our countries. Heck, back in the day religion dominated our schools, racial issues reared their heads and political and military propaganda found their way into our classroom.

The final conclusion I will leave with you is that in many ways, looking at a new developing economy and country can be like looking into a window of our past and a mirror of our own nature at the same time. As people say, history repeats itself. Way back when, the church converted massive amount of followers followers using physical force and direct teaching, just like China is doing today in Tibet. In the West, the capitalist engine attracts billions of people into the school system using the lure of a dollar and the promise of a better life. No question we’ve advanced in practice, but we are still applying methods of persuasion to guide our future generations.

If you found this interesting, there is a related posting on another blog on this site. It is an essay about the school system, and how its purpose is to drive us to be good workers and consumers inside the economy. I found it very interesting. The blog it’s on is called The End of Capitalism, which I think is also pretty cool - definitely worth checking out. Click the link for the article.

It’s no secret that the US economy has been rattled since the whole sub-prime debacle, and is probably in the tank for at least the short term. Latest news shows a ton of job cuts, as this article from the Wall Street Journal excellently demonstrates… U.S. suffers biggest jobs drop in 5 Years as downturn spreads.

The biggest hits are being taken in the financial sector. A research institute recently came out and said that the industry will lose up to 200,000 jobs. From this, a large chunk will be taken out of New York, which is a the power center of the sector, what with Wall Street and the New York Stock Exchange.

If I had to take a guess, I’d say times aren’t too good in the Big Apple at the moment, with a lot of people feeling stress from job insecurity and the market downturn. They are probably going to watch what comes out of their wallets quite closely for the next little while, and this could have disastrous effects for business in the area.

Seeing how a huge chunk of the world’s money flows through the city, there are a lot of companies which most likely have their earnings tied to local prosperity. One that immediately came into my head was Starbucks.

Big league finance is a stressful job which pays out heavily. With extra dollars to spare and longer hours to work, it makes sense that the working men and women of New York would be drawn to the premium coffee Starbucks offers. However, with rough times here and more to come, it seems like switching to cheap coffee would be a perfect way to save a few bucks. I’d predict that all these troubles are going to hit Starbucks sales pretty hard in New York, as well as other financial districts around the U.S.

The stock is currently trading at $18.50 US under the symbol SBUX. Yahoo has a one year target of $23.08, but I don’t think that’s right. If you’re with me, you could take a short position on the stock, buying a put with an expiry a week or so after a set of quarterlies or something. I would do it, but I’m a student… what money do I have?

Think I’m wrong, or just an idiot? It’s quite possible, but at least let me know! Also, I’m sure there are a bunch of other companies that will get hit by this (or helped?)… any other ideas?

There has been some talk about boycotting the upcoming Beijing Olympic games because of the whole Tibet situation that has been ongoing. The BBC reports Nicolas Sarkozy of France has set three conditions that must be met or else he won’t go… France Sets Olympic Conditions.

This guy seems to make the news everyday. In Canada, he’s all over these day because of the extra troops he has pledged to Afghanistan. I think it’s great he’s taking a hard stance on the Olympics, because obviously there is a huge problem in Tibet.

What will Canada do? I’m not sure, but probably what the Americans end up doing. China is big and just getting bigger, so I’m not sure if people will want to piss them off and not show up.

ASIDE: Did you know China blocks access to our news network, the CBC? It’s true, and it’s here…

Apple surpasses Wal-Mart as No. 1 Music retailer in U.S.

Apple has become the largest music retailer in America, selling more downloads through its online music store than Walmart did through retail. I guess we’ve always known music was turning digital, but this is just a nail in the head. Maybe in a couple years there won’t even be cd’s or something similar for us to buy in a store. Goodbye HMV?

This just caught my eye… it’s related to my last post. British Columbia has introduced a cap and trade system for carbon emissions. Here’s the article… BC Introduces carbon cap-and-trade legislation

Here’s a great article written by Jeff Rubin and Benjamin Tal of CIBC World Markets (Two great Canadian economists). It’s called The Carbon Tariff.

Unless you’ve been living under a rock, you will have heard all sorts of things about the Impact of Global Warming on our planet. Today, there is a ton of momentum in developed countries pushing towards cleaner (”greener”) tech. However, the developing countries don’t seem to share the same enthusiasm as we do, specifically China . Unfortunately, these countries are the ones making a lot of the dirt which is causing the problems.

Since 2000, global emissions have risen 25%. Of this growth, 90% comes from developing economies. The article points out that while some of this growth can be attributed to the rapid economic development in places like China, it’s mainly explained by the energy intensive industry their economy possesses, plus a heavy reliance on coal plants (very dirty, high carbon emitters).

In a Globalized world, it makes sense that when our countries tell a company it’s too dirty and will have to pay for it, they pack up their bags and leave. Where they ultimately end up going are countries which don’t care as much about what someone puts in the air as opposed to how much someone can put into their pocket.

Obviously there is a problem here, where developed countries are paying a double price; we lose industry and still suffer from rising emissions. Rubin and Tal suggest our frustration could lead us to slap a tax on incoming goods tied to the carbon footprint their production leaves. I think it’s a pretty cool idea.

I asked my environmental economics prof (a class I’m currently taking) what he thought of this idea, and he wasn’t too into it. He thought that bodies like the World Trade Organization would never allow it, and that actually monitoring carbon footprints across all types of goods would just be way too hard.

Personally, I think its a great idea, and wouldn’t be surprised if we did see it come about. Obviously, it wouldn’t happen anytime soon, but in the next 5 to 10 years you never know. We could just pinpoint high carbon emitting industries, and apply the tax only on those goods.

This whole Green kick has swept into our culture so quickly and powerfully, that I think it will have a lasting effect on how the next century will play out. I see changes in my friends, families and politicians… a new sense of accountability for what we do. I see no reason why the WTO wouldn’t hop on board if this current of care keeps flowing across people all over the world. That being said, not everyone cares, or will ever care. Developing countries get the short end of the stick, as while we benefited largely in the past from dirty tech, now that it’s their turn, people are trying to throw up road blocks. I have a lot to say on that topic too, but it seems like it would need a full post…

I think that underlying all these issues is just a simple model about individual time preferences. When you are wealthier, you care about things more in the long term… things bigger than yourself and your personal needs. When you are poor, you concentrate on short term things… eating, making a living, survival. Maybe this will be my topic for my Masters thesis… who knows.

Well, I wanted to get a good start to this blog, and found the perfect first article from BBC. Go check it out, it’s called Binge drinking ‘damages memory’.

The article details a study which has found a connection between binge drinking and poor memory in younger generations. Ironically, I’m writing this first post on a groggy day-after; last night got a little rough. I guess you could say the article hit a little close to home for me…