From lithium, to EVs, to solar and wind, investors who put politics aside are the ones raking in billions in stock market gains.
That makes climate change a massive mega trend.
From lithium, to EVs, to solar and wind, investors who put politics aside are the ones raking in billions in stock market gains.
That makes climate change a massive mega trend.
For all the existential angst the United States harbors about China, there’s one area it should be cheering… that’s China new commitment to improving its environment.
After all, pollution across China is already a calamity that has a global impact because, since 2006, the country has been the world’s leading emitter of mercury and greenhouse gases.
That’s why – geopolitical and pandemic concerns aside – investors can make a feel-good move into one of the world’s most novel basic materials companies… Beijing-based ReTo Eco-Solutions (NASDAQ:RETONASDAQ:RETO).
The company’s global operations – and we do mean global – are getting up to speed with momentum that helped ReTo book $35 million in revenues last year.
That helped push ReTo’s share price up 72% since May 2020. That price now hovers above $1… and, of course, that’s a huge factor investors must consider today.1
Because, frankly, how many times in an investing life will you have the opportunity to trade a fully compliant NASDAQ stock at such a low price.
That’s particularly true when you consider how other eco-friendly construction companies have gained widespread clout with U.S. investors.
Eco-Friendly Construction Stocks Are Soaring
- S. Concrete (NASDAQ:USCR), which manufactures recycled aggregate products for use in American construction products, has seen its shares jump from just $12 2 per share last March to $60 a year later – a 400% gain in 12 months.
- EcoSynthetix (TSX:ECO.TO), which makes engineered biopolymers to replace non-renewable construction materials. Its shares soared from $2.233 last September to $5.224 a share in February 2021, a 134%5 gain in six months.
- And, a penny stock, Canadian Environmental Waste International (TSX:EWS.V), which recycles old tires into construction materials. It saw its shares rise from 5 cents a share last August to $0.42 today – for a 740% gain.
Moreover, in 2020, 18 of the world’s biggest construction companies raked in billions of dollars on green, eco-friendly construction.
Turner Construction, which is owned by a giant German company, was the leader at $6.3 billion in green-design revenues…
It was followed by the Clark Group at $4.8 billion, Swinerton at $4.1 billion, AECOM at $3.3 billion, and Hensel Phelps at $3.1 billion.
The Only Green New Deals Are The Huge Stock Gains From The Climate Change Mega Trend
So, investors are rushing into lithium stocks, copper stocks, water stocks, solar stocks, green energy stocks, and more… because climate change is a mega trend.
Getting tripped up by Washington’s rhetoric or cable news channel blather – neither of which know anything about investing – is a recipe for leaving a pile of money on the table.
In other words, the markets tell the truth when human beings can’t.
The truth is climate change is the mega trend of a lifetime.
A Pioneering Company And The Security Of The NASDAQ
Because of the highly advanced green construction materials it makes, ReTo Eco-Solutions is a pioneer in the breakthrough products that are used to build “sponge cities.”
If you’re not already familiar with the concept, you may be surprised to find that this is actually extremely lucrative from a profit standpoint while having an enormously positive impact on local environments.
The majority of the waste is iron tailings and fly ash. The tailings are the waste from refining iron ore, and the ash is powdery residue left over from burning coal.
These eco-friendly building materials exceed the density and strength requirements set by government regulations.
As a result, millions of tons of potentially hazardous waste is cleaned up, then reused, and thus, kept out of the environment.
And that’s not even the most exciting aspect of ReTo Eco-Solutions business.
ReTo Is A Trailblazer In Developing Sponge Cities For Critical Water Management
In addition to its work manufacturing eco-friendly green building materials, ReTo Eco-Solutions (NASDAQ:RETONASDAQ:RETO) is also a leader in the development of a construction phenomenon known as “sponge cities.”
It’s a trailblazing trend that has reimagined how cities manage their rainwater containment.
Developed in China, sponge cities are, as their name suggests, designed to soak up as much extra water as possible.
One stunning example of the construction technique can be found outside of China in Singapore.
Known as the Rain Vortex feature at the Jewel Chang Airport, the vortex collects rain from a “bagel-shaped” roof at a rate of 10,000 gallons per minute.
The rainwater flows down a waterfall into an indoor garden.
The water is also used to cool the building and is re-used within the building’s intricate plumbing system.
This is in stark contrast to traditional engineering that would have funneled all that water onto parking lots and streets where it would pick up pollution before flowing, dirty as can be, into the nearest streams and rivers.
ReTo Is Building The Cities Of The Future Today
In an urban setting, sponge cities seek to capture and channel rainwater to reduce both water shortages and the devastating flooding that can accompany intense rainstorms.
One central-China city, the capital of Hubei Provence, serves as a great example of a modern sponge city.
Located along the Yangtze River, the city experienced massive flooding in 2016 due in no small part of an overwhelmed stormwater system.
As part of the sponge city initiative, the city has integrated its stormwater management into the city design as a whole.
That management includes permeable pavement systems that allow rainwater to flow to underground rainwater storage systems, along with plumbing systems that flow thorough buildings for non-potable uses.
Moreover, Xinyuexie Park, which winds through the city was transformed from a dirty drainage ditch into a beautiful green space filled with rain gardens, permeable pavements, and storage ponds for stormwater that will then be reused throughout the city.
ReTo Eco-Solutions Has Opportunities Galore
In short, the sponge city concept aims to capture more precious rainwater and redirect it in ways that are less harmful to the environment.
There are 30 active sponge city programs in China today.6
ReTo Eco-Solutions has two subsidiaries dedicated to building sponge cities,
One is Hainan REIT Construction Project Co., Ltd., the other is Beijing REIT Ecological Engineering and Technology Co., Ltd.
It’s been responsible for the planning, construction and design of new sponge city projects since 2014. The company also acts as a consultant for sponge city developments spearheaded by other companies.
The company designed and built a sponge city project in Changjiang County, Hainan Province. It’s an island in the South China Sea and is China’s eco-sensitive version of Hawaii.
In Hainan, ReTo Eco-Solutions built a new village using 1.8 million “green bricks” and 90,000 roof tiles.
In the end, the company built 86 single family homes in a configuration designed to capture an optimal amount of rainwater and prevent the disastrous flooding, which is typical during the island’s monsoon season.
Government Contracts Are The Construction Industry’s Mother’s Milk
The company gained favorable publicity, which is leading to other opportunities as well.
Earlier, in 2020, the company launched a successful state-of-the-art wastewater treatment solution, as part of a highway linking two competition zones in the upcoming Olympic Games.
For its new Olympics venture, ReTo will consult a team from Tsinghua University’s Academy of Fine Arts.
Plans call for the project to feature many advanced technology applications for solid waste recycling, solar energy, energy storage and low-impact lighting.
The project is designated as a National Priority Scientific Research Project, that will serve as a core of the Shougang Park, which is the main venue of the Beijing Winter Olympics
Not only will ReTo develop the priority project’s technology, equipment, special materials and facilities, it will also manage and maintain the eco-friendly solutions.
Pre-Covid, ReTo Was A Budding Superstar
Prior to Covid, the company’s revenues increased from $35.57 million in 2017 to $37.5 million8 in 2018.
Yet, even with the economic headwinds investors have pushed ReTo’s share 72% since May 2020.9
Those investors are likely buying shares on the NASDAQ because it’s home to innovation… the future. It always has been.
And, a company such as ReTo Eco-Solutions, that’s being favored with high-profile Olympic projects in a buttoned down country like China could have a sparkling future on the NASDAQ.
That’s doubly true when you consider its share price swooned a bit because Covid-19 pounded China’s economy.
But as noted, its shares are on the move again.
ReTo Is A Company With Global Scope And Ambitions
Moreover, there could be more wind in ReTo Eco-Solution’s sails once the pandemic calms down across the globe.
That’s because ReTo has a huge opportunity in India, which is currently buried under the pandemic’s tragic reality.
But once a new normal is at hand, a ReTo subsidiary, REIT India, is set to expand into the Indian market.
Through a joint venture with Q Green Techcon Private Ltd, it will manufacture specialized equipment to produce recycled building products – such as aggregates, bricks, pavers, and tiles – for eco-friendly buildings.
Another ReTo subsidiary, REIT Xinyi New Material Co., Ltd., owns 71 percent of a venture that makes the same specialized equipment in China.
Also, one of its customers is a Louisiana-based company, Alchemy Geopolymer Solutions, that makes a revolutionary concrete out of fly ash.
Top Management Well Versed In Cutting Edge Construction Techniques
The breadth of the company’s endeavors reflects the steady hands that steer it.
Hengfang Li, CEO and Chairman, founded the company, then Beijing REIT, in 1999. Prior to that Mr. Li was the Hess Group’s chief representative in China. Hess is a German company renowned for its concrete products.
Mr. Li was also an senior engineer, then branch director at China North Vehicle Engine Research Center. He holds a master’s degree the Beijing Institute of Technology.
Guangfeng Dai is the company’s Chief Operating Officer. Mr. Dai served as the deputy representative in China for Hess Mechanical Engineering Co., Ltd. of Germany.
He was also a senior engineer at Yanxing Corporation of China and a senior engineer at China North Industries Group Corporation. Mr. Dai also received his master’s degree the Beijing Institute of Technology.
The company’s Chief Technology Officer is Zhizhong Hu. His resume includes a stint as the general manager and executive director of Yichang Hayes Building Materials Co.
He was also the business representative for Hayes Mechanical Engineering Co., Ltd. of Germany. Mr. Hu received his bachelor’s degree from Nanjing University of Science and Technology.
Eco-Friendly Construction Is A Mega Boom
This is a team that has come together at the perfect time while China is in the midst of a construction mega-boom.
And, in the U.S., politicians are debating an infrastructure program that could eclipse $2 trillion. All but the professional naysayers agree the trillions should be heavily focused on sustainable energy and carbon zero constructions.
Or, as the current administration says, it’s all about “reimagining carbon-neutral construction materials” and “resilient infrastructure design, construction and evaluation.”10
The same could go for China, only on a nearly unimaginable scale.
Plans call for China to dedicate as much as $13 trillion to new building construction during the next nine years.
This unprecedented level of construction has tremendous implications — not just for the Chinese, but for investors, too,
Building operations are responsible for 28 percent of global energy-related carbon emissions.
How China constructs its buildings either will fuel dangerous climate change or help create a more sustainable future for everyone.
That best outcome could also include investors in green design construction companies such as ReTo Eco-Solution (NASDAQ:RETO).
Mitigating Climate Change Is Now A Mainstream Desire
Again, you don’t have to embrace the idea of climate change to embrace investing in a mega trend… one that is just picking up steam.
And, the World Future Council11 agrees that sponge cities, such as ReTo is equipped to build, are the future of urban development.
They are at the start of a major trend within the mega trend… like separating lithium, EVs, solar and nuclear energy, and residential energy storage from climate change.
- Clean water for the city. This entails greater water self-sufficiency which allows cities to increasingly rely on water sources from within their boundaries.
- Less pollution. Cleaner groundwater due to the increase volume of naturally filtered storm water.
- Reduction in flood risk. More permeable spaces… leads to better resilience and in particular greater ability to deal with higher flood risks.
- Lower burdens on drainage systems, water treatment plant, artificial channels and natural streams. This also entails lower costs for drainage and treatment infrastructure.
- Greener, healthier, more enjoyable urban spaces. Greener urban spaces improve quality of life, and create more pleasant landscape aesthetics and recreational areas that are enjoyable and attract people.
The eco-friendly building movement is gathering steam worldwide.
Look for it to explode once Covid restrictions are lifted.
Like many eco-friendly companies, ReTo Eco-Solutions is still small and relatively undervalued. But that may not be the case for long.
As you’ve seen, governments are beginning to pay attention, and so have investors.
That means the time to buy is probably right now, when share prices are still at bargain-basement prices.
Investors interested in new niches with the potential for triple-digit profits, should call their broker or advisor and discuss opportunities in eco-friendly construction – and ReTo Eco-Solutions (NASDAQ:RETONASDAQ:RETO)
2NOTE: FOOTNOTES are for internal compliance only, not for publication. USCR closed at $12.16 per share on March 16, 2020, per Yahoo Finance: https://finance.yahoo.com/quote/USCR/history?p=USCR
3Closed at $2.23 per share on September 20, 2020. https://finance.yahoo.com/quote/ECO.TO/history?p=ECO.TO
4Closed at $5.22 per share on February 7, 2021. https://finance.yahoo.com/quote/ECO.TO/history?p=ECO.TO
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