Conmed Healthcare Management (CONM) is scheduled to report June quarter results on Wednesday this week after the market close. A conference call is scheduled for the same afternoon. We have an estimate of $0.02 EPS on $13.0 million in sales for the quarter. There are no other published estimates for the Company. We expect more details from management on the business pipeline as well as recent successes with contract renewals and new contract awards. Last week the Company announced that a collection of contract renewals and upgrades over the last six months have resulted in $2.0 million in incremental revenue. We estimate the revenue run rate for existing business increased to $54.0 million beginning July 2009. This is more than double the run rate reported eighteen months ago in March 2007.

Health care is a salient issue today, but services in correctional settings are rarely discussed by politicians. Nonetheless, the health and well being of detainees and inmates are high on the priority list of law enforcement and corrections officials, who are mandated by the Constitution to ensure the physical and mental health of men and women behind bars. The burden is awkward for agencies that are better trained for safety and security tasks than to diagnose, prescribe and nurse. More importantly it is costly to maintain in-house health care programs. Consequently, in recent years there has been a shift to outsourcing health care functions in jails and prisons. The trend has fostered a crop of private correctional operations offering medical and behavioral health care services.

The palladium mining industry is getting drawn into the energy and carbon debate by some recent technological advances. Representatives of North American Palladium, Ltd. (PAL) told a compelling story at the NYSSA 9^th Annual Mining and Minerals Conference in New York in late May 2009. The company has three mining operations in Quebec and Ontario, Canada. As a diversified precious metals company, NoAmer Palladium producers about 270,000 ounces of palladium and 20,000 ounces each of platinum and gold each year.

As sexy as gold and platinum might be for many investors, I was impressed by the story behind palladium. The somewhat scarce precious metal is used in electronics, dental, jewelry and automotive applications. Advances in diesel engine design have led to an increase in the amount of palladium used diesel fuel catalysts and a growing substitution of palladium for the more expensive platinum, to which palladium can be considered a close relative. NoAmer Palladium expects continued growth in demand from this market segment even without a recovery in the automotive sector.

Dynamic Materials (BOOM) is switching to a quarterly payout from an annual dividend, declaring the first quarterly dividend of $0.04. The payout has not been increased, but we expect more frequent payment could create interest among investors who are looking for a combination of dividends and growth.

The current yield for BOOM shares is 0.8%. The announcement should serve as a catalyst for the stock, albeit a weak one, since the decision to pay quarterly provides some assurance that management has looked down the business pipeline and decided the dividend is secure.

Most investors are at a loss in the in the current equity market environment to decide the best course of action…or inaction. Buy? Sell? Hold? The dramatic economic downturn has spooked even traders with the steeliest nerves. Indeed, the dread word “depression” has entered the discussion.

So which sectors offer at least some cushion in such circumstances? Think pharma! The industry is certainly not immune from macro-economic influences, but appears to be resisting the demand erosion that has decimated the consumer durables, industrial and manufacturing sectors.

Ethanol producers have been making the news again - this time a flurry of plant closings and fire sales is mixed in with new plant openings. Taken together, investors have to conclude the ethanol industry is down but not out.

Verenium Corporation (VRNM) has survived a delisting action by Nasdaq and is building its first commercial-scale cellulosic ethanol facility in Florida. The 365-million capacity plant is expected to cost between $250 million to $300 million to build. So far Verenium appears to have only $7 million from a State of Florida grant. The economics of Verenium’s proposed cellulose-based process have not been provided in detail, but we expect the feed-stock costs to be substantially lower than what VeraSun Energy Corp. (VSUNQ.PK) and other producers have been paying for corn.

It is no secret that I view dividend paying stocks as a 'girl's best friend' - at least for the time being. With volatility still at record levels and the continued significant potential for event risk in the credit and equity from mismanagement or fraud, it is wise for investors to move back into long equity positions with some caution.

That said, there is any number of dividend paying companies with temptingly low valuations. For the sake of its dividend, I recently recommended DryShips, Inc. (Nasdaq: DRYS), a transoceanic carrier of drybulk cargo - think steel, coal and grains. Sales topped the $1.0 billion level in the most recently reported twelve months ending September 2008. Profits have soared in the last two years, making an $0.80 annual dividend possible. At the prevailing stock price that provided a yield of 5.25%.

T. Boone Pickens is making the rounds of bookstores these days to sign his latest book The First Billion is the Hardest. The man’s life is apparently so large it requires multiple autobiographical accounts - three so far. Boone was published in 1987 and The Luckiest Guy in the World in 2001. Only the most patient reader gets past the first page of The First Billion as Mother Pickens is described going into labor. Pickens perhaps unwisely chose not to enlist the help of a ghost writer.

Some might pick up the book for tips on how to make a fortune. It is hardly necessary to pay the $27.00 for the book. Acolytes of the billionaire need only stand in line as he signs his book to learn the secret to Pickens’ success in the energy industry. He is continuously “pitching” his agenda, telling one person where to find his web site and another about investment opportunities in alternative energy. Pickens is a consummate salesman if nothing else.

Ever since oil hit $100 a barrel, public antipathy toward nuclear power has turned to public enthusiasm. The utility industry was quick to catch the change in wind direction. According to the Nuclear Regulatory Commission there are twenty-three applications for new nuclear power plants now pending before the Commission. A total of thirty-four new units would be built if all these applications are approved.

The change in sentiment has also led to new investor interest in those utilities with nuclear power interests as well as uranium mining companies. Utilities like Entergy Corp. (ETR) and NRG Energy (NRG) have retained value while other utilities like Duke Energy (DUK) have sold off on the rising cost of fuel. Likewise, stocks of mining companies such as Rio Tinto (RTP) have fared well even as the rest of the U.S. equity market has struggled.

Jenna Bush was married May 10th. Grandchildren are just around the corner for George Walker Bush. When they ask him about his presidency most likely his response will be “Honey, I shrunk the dollar.” Indeed, the dollar has been in a free-fall ever since the younger George Bush took office.

Unless you are planning an exotic foreign vacation, why should you care about the U.S. dollar relative to foreign currencies? Actually, it matters here at home too. The declining value of the U.S. dollar relative to foreign currencies is at the heart of rising prices for everything from gas, to food to clothes.

Judging by the number of oil and gas executives that are getting into the renewable fuels sector, the new “black gold” must be green.

Last month the Wall Street Analyst Forum staged an investor conference in New York City. Most of the first day was devoted to the "green" stocks of alternative energy or energy efficiency companies. Listening to the presentations, it became clear that some "green" stocks may just be too green to pick.

Among the five presentations, Rentech, Inc. (Amex: RTK), was probably the most developed. With $144 million in trailing revenue, it looks like Rentech has proven both the feasibility and marketability of its version of the Fischer-Tropsch process for producing fuel products. Unfortunately, the revenue is from the production and sales of nitrogen products at a fertilizer plant acquired by Rentech in 2006. Rentech only pulled in $504,000 from the sale of alternative fuels in fiscal year 2007 (September 2007).

The health care sector might be a good place to hide from the cold winds of recession. Finding the right long-play in the U.S. equity market is easier said than done, especially if an investor wants to focus on small companies.

Efficiency creation is a central theme running through the business models of most healthcare companies. Take for example, the unique business model of The Quantum Group (QGP). The Quantum Group offers an innovative solution as provider of business support services in the state of Florida. Quantum's Community Health System [CHS] functions as a financial and management intermediary between primary care physicians and Health Maintenance Organizations (HMOs) with Medicare plans. Quantum's platform gives physicians greater exposure to HMO members and allows the physician to concentrate on patient care by simplifying the administrative function. The Company also provides management support services to physician practices under the brand name QMed.

Landfills are bulging not only with abandoned electronic gadgetry, but with water and food containers. Those of us who live in developed economies are on the move and we eat as we go, buying food at a deli or fast food restaurant. Each item is packaged in a separate container and then deposited usually in a plastic shopping bag. The Sustainable Packaging Coalition, an industry working group promoting eco-friendly packaging, is a good resource for the facts.

Municipal waste, which is where all those deli boxes and grocery bags end up, has more than tripled in the last forty years - well above population growth. One comforting data point - recycling has increased in the U.S. from 10% in 1980 to 30% since the turn of the century. Polyethylene, a thermoplastic polymer used everything from plastic bags to electronics products to automotive components, is a big part of the landfill waste. It is popular because it is flexible, durable and has a melting point of 320 degrees Fahrenheit.

The Acumen BioFin Division of Rodman Renshaw staged a three-day investment conference the first week in November 2007. On the way to observe a presentation by one of the companies in my coverage universe I wandered through the noon lunch presentation.

As is often the case, my lunch companions were the most informative portion of the program. I had the privilege of sitting next to Michael Tardugno, the CEO of Celsion Corporation (CLN), and one of the company's earnest directors, Dr. Kris Venkat.

Bucky Balls are back. This time with under a new name and a ticker symbol - Arrowhead Research Corp. (ARWR). Arrowhead has taken a portfolio approach to nanotechnology development. The Company has invested in five private start-ups, all focused on using nanotechnology engineering and science to develop materials and components for pharmaceutical, power, energy and semiconductor OEMs and ODMs.

One of the start-ups, Tego Biosciences, is a nanotechnology initiative founded on technology developed at Rice University. Scientists there discovered fullerenes and subsequent development led to a family of molecules composed of carbon. They named the fullerenes “bucky balls” because they looked the like the geodesic dome make popular by the architect Richard Buckminister Fuller.

Environmental clean-up is big business. The job is valued in excess of $200 billion by the EPA. Most of the investment opportunity has been in the transport and storage service providers such as American Ecology Corp. (ECOL: Nasdaq) and Waste Management, Inc. (WMI: NYSE).

VeruTEK Technologies, Inc. (VTKT.OB) offers a play on remediation on site. VeruTEK offers treatment solutions for surface and subsurface clean up of contamination of soil and ground water. The VeruTEK solution involves injecting a customized solution into the contaminated area to change the chemical composition of the contaminant and wash it away. VeruTEK solutions work on chlorinated hydrocarbons, pesticides, herbicides and petroleum among other nasty by-products of industrial and commercial activities.

The revelation that this bridge and many more are badly in need of repair or replacement was heard up and down Wall Street, which has a few “bridges” of its own in the credit markets. However, if investors are anything it is resilient. The losses of last week, the worst since the market “repriced risk” following September 11, 2001, can be shrugged off if there is another opportunity in the wings.

Infrastructure stocks! Construction companies will be the big winners if the country rebuilds its roads and bridges. Right?

Fluor Corporation (FLR) and Michael Baker Corporation (BKR) are the first that come to my mind. Both are leaders in the design and building of transportation infrastructure in the U.S. and around the world. Fluor is already working on Highway 52 in Rochester, Minnesota. Baker provides engineering and management services and has worked on replacement of the Ford City Bridge over the Allegheny in Pennsylvania and the replacement of the Fulton Road Bridge in the historic section of Cleveland, Ohio.

The Carbon Disclosure Project [CDP] is a self-styled institutional investor collaboration on the “business implications of climate change.” The group has its beginnings in the United Kingdom but has been joined by some high-profile U.S. institutions like Blackrock, CalPERS and CalSTRS.