I’m incredibly optimistic about the future. We’re on the cusp of some new technologies that could make last decade’s rise of things like streaming video services and electric vehicles look downright primitive, asserts Ian Wyatt, a leading growth stock expert and editor of Million Dollar Portfolio.
Getting to that future will mean a lot of uncertainty, fear, and doubt. Now is one such time. For the past few months, I’m repositioning the portfolio to take advantage of the next generation of tech trends. And this latest market selloff is providing a great entry price on hypergrowth names.
We’re picking up one of them for our portfolio now — Carbon Streaming Corporation (OFSTF), which acquires and manages a portfolio of carbon credits. It invests capital via carbon streaming arrangements with project developers to help create new carbon offset projects.
The company rebranded in mid-2020, and is one of the early players in the streaming business for carbon projects. Streaming agreements allow companies, governments, or even individuals to generate carbon credits from a green asset or property that can then be sold in the voluntary compliance markets.
Additionally, Carbon Streaming has the ability to purchase existing carbon agreements in the market place, as well as the ability to invest in new green projects that can generate carbon credits for others to buy.
Of all these opportunities, the real innovation here is in carbon streaming. Like any other streaming business model, Carbon Streaming will simply get the benefits of cash flows, without having to worry about operational or operating costs.
That can turn into income for Carbon Streaming, which can be reinvested in new carbon projects. Potentially down the line, it could also mean income for shareholders… but that’s a long way off!
As the carbon credit market grows, it’s also possible that carbon credits will increase in value on their own in the resale market, much like price appreciation for beachfront property. That could lead to more value creation that could be unlocked in time.
Carbon Streaming has already invested in a number of global projects, including the Rimba Raya reserve project in Borneo, Indonesia and the Magdalena Bay mangrove forest in Baja California, Mexico.
Besides existing projects, the company has already built up a deal pipeline of over $700 million, or more than twice the company’s current market cap today. The company expects to over 100 million in carbon credits by 2025. In short, for companies looking for carbon credits, Carbon Streaming is becoming a go-to player for this key trend.
When we first issued our special report on Carbon Streaming, I noted that it had a market cap of around $350 million and that shares could be bought under $9. The shares are now closer to $7. That’s a solid entry price for this next-generation technology play.
And for conservative investors, the company has over $2 per share in cash, and zero debt. So it’s well prepared for the current market volatility, and still forging ahead.
The carbon credit market is still a relatively new concept. It’s in its early stages. Carbon Streaming is looking to become the industry leader for this fragmented marked that will someday likely be worth tens of billions of dollars.
I see huge upside here, and a key way to invest in the latest environmental trends that have been growing in recent years. The time is right, and now the pricing is great for investors today.