A Clean Car Pick

Last year, we told you about a report on investing in clean automotive. We have some interesting follow-up information on one of the companies discussed in that report.

Fueltech (Nasdaq: FTEK) which I have recommended in the past was up about 14% today. Why? I like FuelTech but wasn’t impressed with the 2Q numbers and the lowered outlook. I was even thinking about picking it up in the mid 20s but not anymore. I am going to look at some shorting opportunities soon. There’s seems to be a lot of opportunity to short out there. Of course, I am only going to use PUTS to short stocks. Just waiting to see what happens tomorrow.

Of course, the Solar Stocks don’t ever waste an opportunity to advance and they didn’t waste today’s opportunity either. Wind Stocks weren’t far behind.

Coca-Cola turned to California-based IMPCO Technologies, now an operating subsidiary of Fuel Systems Solutions Inc. (FSYS), for the devices to convert its vehicles’ engines to propane use, saving money by using cheaper propane and contributing to the reduction of pollution in Mexico City.

Fuel Systems Solutions has not been what you could call a model company, but it is orders like these that keep investors interested in the world’s leading supplier of alternative fuel systems for internal combustion engines. Even now, as the company faces delisting for the second time in three years for late reporting of its financials, the stock has been treading water around the $17 level, down from its 52-week high of $25.11 in February, giving it a market cap of about $250 million.

Investors are taking notice as they are realizing that what is good for the environment can also be very good for the wallet. Leading the way to a "green" future is the electric vehicle market that offers consumers cost savings through efficiency, while at the same time giving investors following the sector, strong upside potential. Stocks in this segment have also received a boost as oil prices remain above $70 per barrel, and global warming has become a top priority among politicians and consumers.

Overcoming some of the historical challenges found within the electric car market are companies that have placed their focus on research and development to introduce next generation transportation systems to the market. Recent announcements within this market have added a sense of confidence in electric vehicles as a viable transportation alternative.

According to the company’s 2006 annual report, POSCO exports more than 70 percent of its steel products across Asia, mainly to China, Japan and southeastern Asia. In response to record high nickel prices, the steelmaker announced it would begin manufacturing nickel-free stainless steels. So did European steelmakers ThyssenKrupp and Outokumpu, which has heavily relied on its austenitic products.

In addition to their program to turn cow manure from dairy farms into methane and electricity, they are now getting into converting hybrid-electric cars.

I'll continue to call this an implementation of Electricity 2.0.

Apparently we should be looking towards off shore wind farms, wave power and solar panels in our homes. So that secures the green vote but what about keeping warm? Yes we all know about tiny windmills on the shed roof and we have been talking about alternative energy as the answer since I was a kid but the truth is that we are not much further on. Britain still relies on nuclear power for 20% of its electricity but these power plants such as Dungeness and Sizewell are long in the tooth and are due to be decommissioned by 2015. So Britain has to replace that 20% and provide for any extra electricity that may also be required by that date.

His purchase prices were between $30.76 and $36.72, with an estimated average price of $33.6. The impact to his portfolio due to this purchase was 1.27%. His holdings were 858,500 shares as of 03/31/2007. Shares of ADM were traded at around $36.69.

While I could not disagree with Soros' politics more, I cannot argue with his track record in his investments. He is truly one of the all time greats in that department and anything he does is worth noting and following.

The new system will provide a beneficial use for the thousands of gallons of fats, oils and grease [FOG] that are washed daily from restaurant grills and pans, which is collected by grease hauling companies. At the Rialto facility, a FOG-receiving station will provide an effective disposal alternative to landfills, where FOG is often disposed, creating methane - a greenhouse gas - as it decomposes, releasing it directly into the atmosphere. It also will provide a revenue stream to the city through “tipping fees” paid by grease haulers for each disposal.

It really is funny … go to Google, above the text box, choose “Images” and enter “Uranium price” for your search. You’ll get a LOT of uranium price charts all going from the bottom left to the top right. No surprise.

But you’ll open one chart, say this one and you’ll think that the price is somewhere around 85. The heading says that the data is up to February 2007, so your first guess is that this is a fairly up-to-date chart to start with.

Catchpole also said:

This is a business that's necessary, and it also happens to be in increasing demand as America looks to biofuels for energy solutions. While most biofuel in America comes from ethanol, the demand for biofuel from animal fats is growing quickly, and produced a remarkable growth of nearly 50% in profits and revenues for Darling in the second half of 2006. This demand is only going to increase in the coming years, and I think this one could see substantial growth as it learns to make the most of this newfound opportunity.

This is risky, of course.The year 2005 was very rough, and a company like Darling can be hurt by rising fuel costs and rising commodity costs. And one has to imagine there will be increasing competition as other companies see a chance to make money in this business; just recently, for example, Tyson Foods, Inc. (TSN) and ConocoPhillips (COP) announced a partnership to make biofuel from Tyson's leftover chicken fats.

While China had finalized an agreement with Australia last year in the hopes of securing the latters’ uranium supply, political uncertainty still abounds and the prospects of massive uranium production expansion from new mines in Australia is not likely going to happen. Still, as a testament to how serious China is about securing future supplies, Sinosteel Corporation will buy a 60% stake to manage and operate Australia’s Peppinnini Minerals' exploration licenses.

Legendary hedge fund manager Robert Chapman sent a scathing letter to the board of Cypress Semiconductor, urging management to separate its core semiconductor business from its controlling stake in solar cell provider SunPower Corporation, via spinoff and LBO. Chapman, whose fund owns just over 1% of Cypress, implies in the letter that CEO Thurman Rodgers may be neglecting Cypress to concentrate on SunPower. Following a strategic review in October, Cypress announced it is not pursuing a buyout of itself or SunPower; Chapman claims Rodgers isn't selling SunPower because "such reorganization could remove from Cypress the only growth vehicle capable of vindicating his career oversight of Cypress, once and for all, as Mr. Rodgers moves into the late stages of his 40-year career." Cypress announced 3Q net income of $10.7 million on $290.2 million in revenue, but Chapman notes that the core value of Cypress declined 50% in Q4. SunPower's Q3 revenue nearly tripled y/y to $65.3 million, as the company posted net income of $9.6 million -- its second consecutive profitable quarter.

Completing EverQ-1’s ramp a quarter ahead of schedule meant embarking on the next facility upgrade earlier then expected which will result in a gross margin of 22%, flat q/q and down from 30% to 35% guidance. Despite the change in timing, the company is progressing well and profitability on greater scale is an optimal decision despite the headline.

Here's why:

I/B/E/S Estimates (see below) reflect three banks that wasted no time slashing next year's numbers. Seven more cuts to go. That said, AEI thinks ESLR shares have endured the worst. We think the company's quad-furnace is a significant catalyst for the company and "others" that have a desire to access the technology. AEI is recommending subscribers begin looking at ESLR on the long side as the worst is behind it and better times lie ahead.

On Thursday AEI uncovered two contracts wins ahead for DESC representing 10 megawatts of combined heat and power totaling over $17 million or +25% of next year’s consensus sales estimate. The larger of the two, a 6 megawatt plant for Vornado Realty Trust (VNO) has received NYSERDA funding in excess of $3 million and is slated to begin in current quarter and is values at $12 million. We anticipate DESC to have a contract announcement soon. The second project is a 4 megawatt plant for The Rockefeller Group which is currently expected to receive NYSERDA funding in “several weeks” according to one NYSERDA official. Both projects are anticipated to be completed before the end of 2007. AEI also picked up data which suggests the company's 3Q report will be excellent.

Northern Power, NYSERDA (the New York State Energy Research and Development Authority) and Equity Office Properties announced the completion of a new $4.1 million, 1.6-megawatt combined heat and power [CHP] system at 717 Fifth Avenue in Midtown Manhattan. The system, “the first of its kind,” is a medium-scale combined heat and power [CHP] project synchronously interconnected to the grid.

ESLR shares will likely see buying as shorts cover and long term investors gain limited exposure.