The ESG revolution is underway, and it stands to redefine the playing board for equity market participants, clearing the way for new speculative opportunities, such as Green Stream Holdings Inc (OTCMKTS:GSFI).
We are sifting through the small and micro-cap ranks to unearth promising plays within the scope of this theme. Membership in this group holds the potential to grant a powerful advantage to stocks that meet the basic criteria for new capital flowing into ESG funds because money is flooding into funds that advertise a pure dedication to directing investment exposure according to ESG ideals.
ESG stands for “Environmental Social and Governance”, and refers to the three defining factors that shape the framework for investors seeking to channel their investment capital toward opportunities centered on the sustainability and ethical impact of any business or company seeking funding from capital markets. According to investment experts, the focus on ESG investing is destined to become the defining feature of the equity market over the next decade as millennials become the primary source of risk capital in the market.
Green Stream Holdings Inc (OTCMKTS:GSFI) fits the bill as it represents a unique and powerful model for combining affordable and sustainable energy with the functional and aesthetic needs of high-population-density areas in the developed world.
Doing Good While Doing Well
One might suppose ESG is a compromise. But hard data shows ESG investments have been outperforming other factor bets during 2020.
According to a piece in the Wall Street Journal last week, “funds focused on socially responsible investing have been a rare bright spot in this year’s market meltdown, the latest evidence that the practice is more than a bull-market trend.”
The key here is the drive to direct capital toward ESG vehicles. According to Morningstar Direct, in the first four months of 2020, investors piled a record $12.2 billion into funds that claim a focus on environmental, social and governance practices.
That more than doubles the amount that ESG funds attracted during the same time last year, when the U.S. was in the midst of its longest-running bull market in history. In other words, it’s catching on.
And GSFI has all the hallmarks of an attractive speculative option for investors seeking big future growth at bargain prices. The company is just ramping up on a commercial level, and already has important roots being laid in the lucrative California marketplace.
“Our model generates significant margins and has the ability to scale up rapidly and without significant balance sheet risk,” continued Cammarata. “Our Green Stream model is established. But we are even more excited about our Green Rain model. Our greenhouses are designed with the future in mind. Greenhouses use over 18 million kWh of electricity each year. We have mobilized recent research from UC Santa Cruz, using solar energy and pink light, to create facilities that will drive faster, more robust growth on a zero-carbon footprint, and generate a marketable surplus of solar energy. We then monetize the facility as a food cultivation resource and energy farm. This is where the future is headed. This is something that every community can value.”
Two and Two, Together
The company holds two core businesses: Green Stream Finance, Inc. and Green Rain Solar, LLC. Both segments, according to recent company communications, are involved in the production of solar energy at company owned and operated facilities, with rooftops acting as a core site premise.
Green Stream Finance is a community shared solar model where the tremendous benefits of solar energy creation can be shared among the residents of a community.
Management notes that this model has proven extremely effective at “democratizing” the value of energy generated through rooftop or quasi-local solar farms by allowing local residents to purchase access to the energy proceeds through the local utility provider through customer contracts. However, the industry has failed to gain strong traction because design is important to privately-held commercial property interests, which has limited access.
Green Stream has partnered with architecture legend Anthony Morali to design solar installations that seamlessly integrate into commercial structures to remove this obstacle and open up more capacity in municipal areas.
In underserved and growing markets, Green Stream engages customers through simple leasing agreements of solar infrastructure, next-generation batteries, and PPAs (Power Purchase Agreements). Typically, the Company retains 80% of the customer’s savings, which are substantial.
Beyond that, Green Rain Solar (greenrainsolar.com) is the branded public face of the GSFI ecosystem, and primarily engages in the construction of bespoke commercial solar projects and solar-powered greenhouses perfect for rooftop agriculture or aquaponics (the symbiotic cultivation of aquatic life and vegetation).
Green Rain installations will generate revenues through the sale of solar energy as well as access to cultivation facilities within its greenhouses. Green Rain anticipates strong access to unique markets through the added benefit of its greenhouse facilities, and the ability to market greenhouse cultivation plots and donate freshly cultivated natural foods to local communities.
