By Angela Harmantas
Ontario’s recent cap and trade program to combat climate change has and equal number of champions as detractors, but what is it really? Today on SmallCapPower our experts examine how the program may affect a business’s bottom line, and what to look for when judging a company’s sustainability program. Elsewhere, we ponder whether China’s woes means the end of an era and share our picks of companies who could bounce back more quickly than their peers – here’s what you need to know today:
Back in April 2015, Ontario’s provincial government unveiled a new cap and trade program to combat climate change. The system, in partnership with neighbouring Quebec, specifies a limit on the amount of greenhouse gas emissions various industries can emit into the atmosphere. Obviously, the new system means different things to different companies, depending on their existing level of emissions. In a new video clip, Gravitas Financial’s Alex Cutulenco explains how the cap and trade scheme can affect a company’s bottom line, why some companies are successful where others may fail and the key things to look for when assessing a company’s sustainability initiatives. Cap and trade systems are often an alternative to a more wide-reaching carbon tax (as seen in British Columbia, for example), but both come with detractors. To me, a cap and trade scheme makes more sense in Ontario, but the Toronto Sun’s Lorrie Goldstein lays out his argument that cap and trade lines the government’s pockets with no environmental benefit – at the consumer’s expense. Where do you stand on Ontario’s plan?
We’re still assessing the damage after Black Monday 2015, and while the TSX bounced back slightly on Tuesday, the loonie certainly didn’t. For the first time in 11 years the Canadian dollar closed below 75 cents US. Even another interest rate cut in China failed to boost investor confidence in the once seemingly indestructible economy. I know I talked yesterday in Before the Bell about how experts are preaching cooler heads, but what do you think? Is this the beginning of a New World Order, or will China find its footing again before the summer’s over? It’s a question we’ll be grappling with in our upcoming features on SmallCapPower, so let us know your thoughts.
Finally, our team of analysts picked 5 stocks that may bounce back from Black Monday. The list comprises of companies with no business dealings in China and who are not trading in commodities but, as with most publicly traded companies at the beginning of the week, got caught in the wide-ranging selloff. Take a look at our list and let me know whether you like the recovery possibilities for these companies.
Do you have a burning question you’d like answered by an investment expert or analyst? Let me know and I can post the answer here in the blog. Contact me by email at angela@smallcappower.com or on Twitter: @aharmantas.
