Welcome to The Green Investor/ November 2010!

After publishing Progressive Investor since 2002 - the first green investment newsletter - we are merging with our sister newsletter, The Green Investor.  

Rona Fried, Ph.D., editor and publisher of Progressive Investor, and CEO of SustainableBusiness.com, will continue to be involved with the combined newsletter, which will change its name to The Green Investor.

Out of the ashes of the November 2 elections where Republicans swept back into the majority in the House, voters soundly rejected California's Proposition 23, which would have ditched the state's prescient, far reaching climate change law, AB32. Unfortunately, voters passed Prop 26, which the oil industry poured millions into when they realized they were in a tough battle to pass Prop 23. Prop 26 renames polluter fees as taxes and requires a two-thirds majority to pass them. That could effectively de-fund AB32 along with many other important polluter fees. Read Election Fall-Out for Clean Technology on the election results and Vote NO on Prop 23 AND Prop 26 to understand the two Propositions.

The stock market has continued to do the unexpected by sustaining the rally it started in early September. The S&P 500 index gained 3.69% in October and The Green Portfolio added some 5.29%, again outpacing the S&P Global Clean Energy Index which managed to lose 1.80%.

Since inception in August 2009, our portfolio is up 32.29% compared to 18.02% and -27.83% respectively for the S&P 500 and S&P Global Clean Energy Indexes.

The wind sector got battered some more with Vestas Wind Systems (VWDRY.PK) receiving another round of selling after their third quarter results disappointed investors again despite beating consensus analyst expectations for both sales and earnings. A poor 2011 outlook led to the announcement of factory shut downs and the layoff of 13% of their workforce. Our other wind stocks suffered in sympathy with Vestas as it is not clear what will trigger a turnaround in that industry.

As we highlighted in our mid-month update, the pollution sector and our Chinese water stock, Rino International Corporation (RINO), continued to lead the charge with a one month gain of 31.25%. The shares have been pulling back from overbought levels and a short-term consolidation is very likely.

Another sector ripe for a correction is the solar industry which has seen a strong run through the summer. Be sure to read "The Future of Photovoltaics" in this issue for an update on our solar recommendations.


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Enjoy and Learn!

Analyst Interview: Sam Jones on Market Conditions for Green Stocks

Fueled by largely positive third quarter earnings reports and investor expectations for monetary easing by the Fed, the Dow Jones (DJIA) is near its high for the past two years. The DJIA is up some 11% since the beginning of September and solar stocks gained even more than that, with the Ardour Solar Index, for example, up 13.7%, after a flat August.

That's great news for the solar group and for long term investors who've been hanging on while the group underperformed the overall market for much of the past couple of years. After a single digit decline in April 2010, the sector dropped 21% in May as the Euro currency crisis unfolded, adding to the volatility over the past year related to anticipated subsidy cuts in Germany and Spain.

Investors were concerned that demand would drop off with cuts to subsidies in these critical markets and they were also concerned that a crowded market - over 190 cell and module makers - would create oversupply, putting pressure on margins and prices.

Cuts to Germany's landmark feed-in law took effect in July, but demand hasn't missed a step in the world's largest solar market. Because of strong demand, prices have also held up. The solar group was also buoyed by a 7% increase in the euro.

On September 30, the European Renewable Energy Council (EREC) announced the European Union (EU) surpassed its 2010 renewable energy targets. 16 GW of solar PV has been installed (five times the target); 75 GW of wind (80% over the target) and 1 GW of geothermal (three times the target). EREC is confident the EU will exceed its 2020 target of 20% of energy coming from renewable energy.

China will soon release a high profile 10 year energy plan spanning 2011-2020. The plan will outline measures to further develop its clean energy industry, while increasing domestic energy efficiency and clean energy production. The National Energy Board estimates the plan will cost RMB 5 trillion ($730 billion) to generate an annual output of RMB 1.5 trillion ($220 billion), while creating 15 million jobs.

China still has a tiny footprint in solar PV. It doubled installations in 2009, bringing the total to 310 MW, just 2% of world capacity. Solar water heating installations rose 31%, however, accounting for 70-80% of the global market. Wind installations rose over 100% to 26 GW, surpassing the US as the largest market for wind energy. China has nearly a third of the world's wind farms.

The situation is much less sanguine in the US, where a Republican take-over of the House of Representatives will  make it impossible to pass progressive energy legislation as well as jeopardize many clean energy subsidies. The lack of stable policy and incentives has become a real problem for the US - several large wind and solar firms have substantially cut back on their commitments finding much more fertile ground elsewhere.

I spoke with Sam Jones, portfolio manager of the New Power Fund, to find out more on what's happening with the solar sector in particular and renewable energy investing in general. Sam has an uncanny ability to continually be on target on market conditions and I've grown to trust his advice, thoughtfully offered to me over the past couple of years.

Rona Fried:

For the first time in years you're excited and positive about green stocks.

Sam Jones:

Yes, there's suddenly a lot of enthusiasm for these stocks. It's been a long, painful road since 2007, but the environment for this sector is changing for the better again; it's riding the wave of commodity strength. Solar is one of the strongest performing market sectors since the rally began in early September. Many of its leaders have broken through long basing patterns and downtrend lines extending back over three years. In spite of poor economic conditions for business credit and speculative investments, utility scale solar is growing and demand is very strong.

Our New Power strategy is fully invested for the first time in over three years - we have more than enough securities in strong up-trends to invest in. Since the September lows, our returns for the New Power fund are accelerating 2-3% a week. This may be one of those great entry points - we may not see such low prices again in our lifetimes.

Rona Fried:

Is the break-out mostly in solar or in green stocks across the board?

Sam Jones:

Solar companies have run up almost 20% in the last three weeks. They've now pulled back - after this digestion period, they'll run up again, so this is the time to get in.

But the action is broad across the green sectors. I'm even buying energy storage companies, which have really been down for years - some of the worst beaten up names out there. Wind is one of the few areas that hasn't come back, but that may be pending. Each sector gets its turn at the wheel.

Rona Fried:

You've said in the past that renewable energy stocks move up in fairly short bursts, so you have to be in there where it happens.

Sam Jones:

Exactly, and it's the consolidation patterns that happen afterwards that really matter. We don't want to see the pattern broken during consolidation, which started October 27. As long as the stocks don't pull back more than 6% on average, the pattern won't be broken. Many stocks are testing their April highs so we expect volatility at this level ... especially going into elections.

We'll know the momentum is real if we make it through elections without things falling apart. If it's the mild pullback we're looking for - that is, the stocks don't go much below the April highs - then that's the time for investors to get in.

If they pull back to the April highs and consolidate there, that's a picture perfect entry point, because they'll be positioned to thrust higher.

Rona Fried:

Has the solar sector moved as a group, or are there leaders?

Sam Jones:

The Chinese solar companies are definitely leading and First Solar (FSLR) looks ready to break out for the first time in a long time. Chinese companies JA Solar (JASO), Trina (TSL) and Solar Fun (SOLF) are digesting the massive 40% gains they've made since they broke through their April highs in September.

We own JA Solar, First Solar and a solar ETF (TAN). I'm planning to buy Trina after the pull back is finished - it's been hard to find a good entry point.

Recently, we bought shares in Ford (F) because of its entry into electric cars, and Google (GOOG) because it's such a strong company that's involved in the green space in so many ways, from investing in renewable energy to smart grid. Both had good entry points and are safe places to put money to work.

Rona Fried:

What caused the shift upward after being down for so long?

Sam Jones:

Commodities and speculative small caps cycle in during the mid to last phase of a bull market, that's why they were out of favor and now coming back. There wasn't any action in commodities or renewables - which are highly correlated to commodities - until early September, when they finally took off.

Energy and other commodities are surging - high demand combined with supply constraints are pushing prices higher. That may seem false to those of us in the US, where we're in a deflationary cycle, but raw commodities are in strong demand from China and other emerging markets. The price of coal doubled over the past 18 months, which like $4 a gallon gas at the pump, gets people interested in renewable energy and electric cars.

We have to watch whether commodity strength continues or whether it's a temporary blip. Copper is at all time highs, there are massive shortages of palladium, which is used in everything from cell phones to LCDs, and base metals have made huge moves.

Rona Fried:

What do you expect for the first half of 2011?

Sam Jones:

I expect the broad stock market to peak in the first quarter, but our late cycle bloomers should do well to the mid-2011.

Tech, industrials, health care, consumer staples and commodities (which includes renewables) would be my plays from here forward. Sectors that are sensitive to interest rates like banks, financials and utilities are already starting to cave.

I'm sticking with my 1300-1350 target on the S&P as the point where the wash-out takes place, some time during the first quarter. Then I'm looking for a repeat of the 2007 pattern, which was the best year ever for the renewables group.

In 2007, stocks peaked and many sectors headed south, and that's when renewables and commodities took off. The economy is recovering now and inflationary pressure will kick in, weighing on many sectors. Inflation could rear its head in lots of ways. There will be some surprising events over the next 12 months - EU and US government debt could be downgraded - which would cause rate spikes for example. The big, long tide of rising inflation should be a good backdrop for renewables through late 2011.

Renewables will still be volatile though. You have to be able to stand 15-20% swings in your portfolio once or twice a year. That's fine for younger, longer term investors, but if I were a retiree, I'd look elsewhere.

It's strange that we're looking at a surge in renewables just days before Republicans seem poised to take over the House in Congress. If renewable energy depended on the US it wouldn't be doing so well. The rest of the world is plowing forward and leaving us in the dust. There's a huge waiting list for the Nissan Leaf electric car, but Congress can't make a move to support green energy. It could end up taking hold here only when oil goes back to $120 a barrel and coal prices double again - people will then vote with their wallets instead of waiting for progressive US policy.


Rona Fried, Ph.D. is CEO of SustainableBusiness.com, a global networking and green business news portal, online since 1996. SustainableBusiness.com published the first green investing newsletter, Progressive Investor, from 2002-2010.

Sam Jones is President, All Season Financial Advisors and Portfolio Manager of the New Power Fund.

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The Future Of Photovoltaics

Solar ranks only fifth in the renewal energy universe (after hydropower, wind, biomass and geothermal) and still accounts for less than 1% of the electricity produced.

Despite its tiny share of the energy market, solar gets the lion's share of attention in renewable energy. Why?  Unlike other clean energy sources, it is ubiquitous on earth and it has the potential to provide all the energy we need for a very long time. It is specifically this prospective growth opportunity which attracts companies and investors to solar.

Solar technology has been around for decades but it is still evolving rapidly and the market is in its infancy. As investors, it is critical to stay on top of the progress made as the landscape and the players can shift very quickly. The last year has been especially active with many promising new technology developments, major new entrants such as 3M, Dow Chemicals and GE, and this article brings us up-to-date on the solar industry and related photovoltaic investment opportunities.

There are still only two basic approaches to extract energy from the sun: photovoltaics (PV) which directly converts light to electricity, and concentrating solar power (CSP) which first uses the sun's rays to generate heat which in turn gets converted to electricity.

This article focuses exclusively on PV technology, but it is worth mentioning that just last week the U.S. Department of the Interior approved what promises to become the largest solar complex in the world, composed of four CSP plants totaling 1 gigawatt a few miles west of Blythe California.

Alas, the two companies behind that project are not good investment targets for different reasons: Solar Millenium is a very small cap German company which is traded over-the-counter (SMLNF.PK) but is very illiquid, and Chevron (CVX) which does not exactly match our green investment criteria... CSP technology is in its very early stages and does not yet offer many good opportunities for the individual investor (for CSP background information read " Thermal, the Other Side of Solar" in the March 2010 issue of The Green Investor.)

Getting back to our main topic, photovoltaics, let's look at recent market developments and an outlook for the rest of 2010 and beyond. As recently as June many market research outfits were still forecasting 2010 to be a very slow growth year with overcapacity, bloated inventories and the likelihood of a nasty price war amongst manufacturers.

Even the European Photovoltaic Industry Association (EPIA) which tends to be over optimistic but pretty accurate projected demand to fall between 8.18 gigawatts (conservative) and 12.72 gigawatts (aggressive). Well, with the most recent numbers compiled from various sources (see the chart below) it now looks like shipments might even beat the most aggressive numbers to reach 13.5 gigawatts, an 87% increase over 2009. Note that the chart labels ROE and ROW stand for Rest Of Europe and Rest Of World, respectively.

Photovoltaic industry market demand - Consensus estimates
Photovoltaic industry market demand - Consensus estimates
Source: First Solar, based on forecasts from Barclays, Citi, Collins Stewart, Commerzbank, CLSA, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Think Equity, UBS and Wedbush

With three quarters of the year over, it is becoming very obvious that 2010 will be a banner year for the solar PV market, with shipments eclipsing the most optimistic forecasts. While most geographies are growing faster than expected, the big surprise came from Germany, the largest market in the world. Instead of falling off a cliff because of feed-in-tariff (FIT) cuts, the German market is poised to nearly double this year as purchases were accelerated ahead of further FIT cuts scheduled to hit next year.

Still, it now looks like the German solar market has seen its best days and as government subsidies are gradually eliminated the market is set to shrink in the years ahead. Because of this, 2011 could be a much tougher year for the solar industry but forecasters are predicting the rest of the world will pick up the slack to deliver growth, albeit much lower that this year.

To identify the winning companies it is critical to establish which of the competing solar photovoltaic (PV) technologies will be dominant, and when. But before we review the PV technologies and the players we must stress that two of the solar stocks in our Green Portfolio are not makers of PV modules but of necessary complementary products which will gain regardless of which PV technology prevails, and we recommend continuing to hold them (or to buy them) if you haven't yet:

Power-One (PWER), our preferred manufacturer of solar inverters which converts the direct current generated in PV cells into alternating current suitable for the home and for the grid (be sure to read
"Position Sizing/Taking Profits" and " The Green Portfolio Update" for our next profit taking opportunity.)

STR Holdings (STRI), the dominant supplier of encapsulants, the protective layer all PV  cells/modules required for efficient and reliable operation.

Competing  Solar PV Technologies

So, which of the competing PV technologies will dominate going forward? The following reviews the main PV technologies-  from most mature to early research stage - and lists the key players as well as what we recommend investing in.

Crystalline silicon

As the most pervasive solar technology, crystalline accounts for nearly 80% of annual PV sales. The technology is very similar to that of semiconductor chips which start with purified silicon ingots which are then sliced into wafers. The wafers are then processed to form the semiconductor junctions of solar cells. This is the most mature technology which delivers the highest efficiency, the percentage of the sun's energy that the solar module converts to electricity.

Efficiencies of mass-produced monocrystalline modules are now routinely above 15%. Less expensive to manufacture, and by far the most common, multicrystalline are getting into the 17% conversion range. The biggest drawback of crystalline silicon technology is that it uses a lot of silicon which makes the manufacturing process very complex and factories and equipment quite expensive.

Read the complete article.

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How to Size Positions & Know When to Take Profits

Position sizing is one of the least understood and practiced aspects of investing, yet it is arguably one of the most important risk management techniques we have. There are many fancy position sizing strategies, but what we focus on here is keeping the size of individual stock positions from growing too large, or conversely, shrinking too small.

Of course it depends on the size of your portfolio and how many different stocks you own, but in The Green Portfolio we currently have 23 positions, and we start every new position with the same fixed dollar amount, call it $10,000, or about 4% of the portfolio. In order to manage risk and limit exposure to any one company, we don't want any single stock to represent more than 8% of the portfolio.

Solar inverter company Power-One (PWER) has made strong gains and is nearing our cut-off point again. We  sold half of our shares in May 2010 for a 221% gain, and are preparing to sell half of the remaining shares again. Solar shares, including PWER, have been retreating over the last few weeks, but we are confident that PWER will rebound and continue higher. Accordingly, we recommend placing limit orders to sell half your shares at $11.37, which in our portfolio would bring PWER to about 8%.

Vestas Wind Systems (VWDRY.PK) provides a good example of the other side of portfolio sizing.  Down -55%, it is the worst performing position in our portfolio - it got knocked down further on their most recent quarterly report. The loss in value brings the Vestas position to less than 2% of the portfolio, but since we still believe the company will be one of the winners in its field and an excellent long-term investment, we recommend adding to your positions. If you double the number of shares you own, you not only bring the position closer to the 4% average size, but you lower your average share cost.


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Investing Abroad While Investing At Home: ADRs

by Garrett Beauvais, Contributing Editor

Fortunately for investors based in the United States, investing in thousands of foreign companies is as easy as investing in domestic companies. This is because foreign companies can list their shares on U.S. stock exchanges through the use of American Depository Receipts (for our purposes we will treat the terms American Depository Receipts and American Depository Shares - ADSs -- as the same thing).

"An American Depositary Receipt (ADR) represents ownership in the shares of a non-U.S. company that trades in U.S. financial markets. The stock of many non-U.S. companies trade on U.S. stock exchanges through the use of ADRs. ADRs enable U.S. investors to buy shares in foreign companies without the hazards or inconveniences of cross-border & cross-currency transactions. ADRs carry prices in U.S. Dollars, pay dividends in U.S. Dollars, and can be traded like the shares of U.S.-based companies."

Why do companies issue American Depositary Receipts?

Why do investors buy American Depositary Receipts?

To understand a little more about how ADRs work, we'll use a simple, well-known example: British Petroleum, otherwise commonly known as BP (which also happens to be their ticker symbol on the NYSE). As of the close of trading on 10/26/10, BP ADRs were valued at $40.65 per share on the NYSE while BP shares on the FTSE in London closed at £4.2635.

How does this work, you ask? BP's ADR shares are listed on the NYSE at a ratio of 1:6 where each ADR share is the equivalent of 6 shares of the stock on the FTSE. It is just a simple ratio, nothing more. In fact we can take the U.K. share price, multiply it by the $1.58 GBP/USD exchange rate and then multiply by 6 and voila we get $40.41, essentially the same price as the NYSE closing price. Because the shares trade independently and because the equity and currency exchanges in the U.K. and the U.S. keep different hours you will usually find small differences in the prices from one exchange to another. There are, of course, traders whose sole business is to make money on arbitrage opportunities in the various share listings on different global exchanges, however with ever smaller bid-ask spreads, this is a game that is almost entirely the realm of high frequency automated trading programs.

The attractiveness of ADRs is obvious. You can trade them at your broker just the same as any U.S.-based stock or fund with the same commission.

Second, the foreign companies that choose to list their shares on the NYSE are subject to many of the same U.S. securities laws transparency enabling investors to not only gain insights in company operations and financials that may otherwise not be easily accessible,  but to also enable access to standardized financial reporting requirements that enable investors to compare foreign companies to U.S.-based firms.

NYSE Rule 303A identifies several key reporting and compliance requirements for foreign companies in order to have their shares listed on the NYSE in the areas of: Independent Directors, Meetings of Non-Management Directors, Nominating and Corporate Governance Committees, Compensation Committees, Audit Committees, Stock Option Plans, Corporate Governance Guidelines, and Code of Business Conduct and Ethics. ADRs listed on the NASDAQ have similar requirements.

Having shares listed on the NYSE or the NASDAQ is the highest standard for foreign shares traded in the U.S. but it is not the only way for foreign companies to sell shares on U.S. exchanges. Foreign companies may instead choose to issue ADR shares on the Over the Counter (OTC) market through the Pink Sheets. In fact, both foreign ordinary shares and ADRs can both trade on the Pink Sheets.

You know a stock is an ordinary if the ticker ends in F and you know it is an ADR if the ticker ends in Y. In the case of Vestas, we currently hold the ADR, VWDRY in our portfolio, but investors also have the option of buying the ordinary shares using the ticker VWSYF which accounts for 3 ADR shares. 

Pink Sheets are the third tier of the OTC market and have minimal reporting requirements. Basically from a due diligence perspective, you are on your own here; some companies will have full SEC-quality disclosures on their websites while others may have hardly any disclosure or information at all. A good place to start your ADR information search is www.otcmarkets.com which has a large database of financials, information, and disclosures you would typically find for U.S.-based firms.

U.S.-based investors can easily buy stock in foreign companies through ADRs. A number of financial intermediaries are involved and make this process easy for investors as shown the following diagram.

ADRs process
In " The Green Portfolio" we currently hold ADRs in 5 foreign companies:


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Our Green Portfolio Update

Power-One, Inc. (PWER) - November 3, 2010 - RECOMMENDATION UPDATE

We recommend placing limit orders to sell half your shares at $11.37. This action is intended to take partial profit and to bring the Power-One position size back to average in our model portfolio (about 4%.)

We remain bullish on Power-One and are confident the shares will be higher in the long-term. It is generally a good practice to let winners run and this is why we keep the same dollar amount invested as we started with. It is also important to know when to take profits and this is why we will frequently take our gains after a doubling of the stock. Another way to look at it is that, by removing your initial investment, the shares of PWER that remain are like free money and give you a no-risk exposure to a great company.

The Green Portfolio - As of October 29, 2010

See the full green portfolio.


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Stock Ratings

Stock Ratings from our research partners, Canaccord Adams and Ardour Capital:

This page is updated throughout each month. Check for updates.

When you see two Ratings, that means the rating changed from last month. The first is the previous rating; the second is the current rating, eg, Accumulate/ Buy

Currencies: "home" currencies

** foreign stocks that have US ADRs
** Best Idea Stock

Large Caps

Company Ticker Price Target 52-Week Range Rating  Target
Apple   AAPL  $316.40  $421  188.68--321.30  BUY  12/1/10
Google  GOOG  $593  $660  433.63-629.51  BUY  10/15/10
 IBM  IBM  $142.83  $150 116-143  BUY  10/19/10

Apple: strong iPhone, iPad sales. Anticipate solid longer term trends for both products.
Google: strong Q3 results from healthy growth in UTube, mobile. You should have bought it in 2009 when we recommended it at a fraction of this price!
IBM: Q3 beat estimates across the board. Trades at conservative multiples with a 2% dividend yield.

Healthy Living

Company Ticker Price Target 52-Week Range Rating  Target
Atrium Innovations  ATB.TO  C$17  C$24  11.45-17.98  BUY  3/19/10
BioExx Specialty Proteins  BXI.TO  C$2.44  C$4.10  1.28-2.93  Speculative BUY  11/21/10
Cereplast  CERP  $2.94  $6  2.78-7  BUY  11/16/10
GLG Life Tech  GLGL  $8.04  $10.50  6.22-9.52  BUY  11/9/10
Green Mtn Coffee GMCR  $36.16  $40  19.87- 37.97  BUY  11/22/10
Hain Celestial  HAIN  $25  $26  14.45-25.50  BUY  10/25/10
Jamba Juice  JMBA  $2.43  $3.50  1.56-3.83  BUY  11/10/10
Martek BioSciences MATK  $22.84  $26  17.09-25  BUY  9/24/10
Medifast  MED  $32.79  $40  6.36-36.58  BUY  5/6/10
NBTY  NTY  $54.09  $55  31.80-54.50  Tender  8/10/10
SunOpta STKL; SOY.TO  $7.35  $9 7.60  BUY  11/9/10
United Natural UNFI  $36.55  $38  23.29-37.48  BUY/Hold  10/25/10
Whole Foods WFMI  $46.62  $50 24.94-46.66  BUY  11/4/10

Atrium: price target raised from $19. Q4 revenue increased 33%, beating estimates; strong internal growth and acquired Trophic Canada, a leading natural nutritional supplement mfr.
BioExx: start-up of continuous production; risk-tolerant investors can participate in commercialization of disruptive, economically compelling technology within large addressable market.
Cereplast: Q3 missed but 2010 on track; raised equity round, eliminating cash flow concerns, solid base for growth.
GLG: still early, but market for stevia is developing; significant growth expected over the next few years. 
GMCR: expect several years of rapid growth before maturation of single-cup coffee brewing. EPS can exceed $1 for each 5% market penetration.
HAIN: significant earnings growth expected in 2011. 
Jamba: in the process of a turnaround, but long term prospects look good.
Martek: humming along with higher margins; long-term extensions with major infant formula customers, more expected.
NBTY:  agreed to be acquired by Carlyle for $55/ share.   
SunOpta: target raised from $6.75; estimates raised for the year on strongest margins in its history and category growth.  
UNFI: unfavorable risk/reward for next couple quarters as they integrate new business and facilities.
WFMI: exceeding even the strong growth expected; raised 2011 guidance on strong margins and sales outlook.   


Company Ticker Price Target 52-Week Range Rating  Updated
Astec Industries  ASTE  $31.08  $30  22.76-36.94  Hold  10/25/10
Bioteq Environmental**  BQE.TO  C$0.85  C$1.20  0.58-1.49  Speculative     BUY  11/8/10
Casella Waste  CWST  $4.45  $6 3.20-5.39  BUY  12/1/10
Covanta  CVA  $16.09  $21  13.14-17.93  Accumulate  10/21/10
Darling International  DAR   $12.20  $14.50  6.85-13  Accumulate  11/15/10
GrafTech International  GTI  $19.60  $24  11.68-21.11  BUY  12/2/10
Headwaters  HW  $3.71  $7  2.62-6.84  BUY  10/3/10
Horsehead Holding  ZINC  $11.76  $17  7.11-13.92  BUY  11/10/10
Kadant  KAI  $18.90  $25  10.90-22.77  


LKQ  LKQX  $20.74  $21  16.50-22  Hold  9/24/10
Metalico MEA  $4.46  $8  3.07-7.09


Newalta  NAL.TO  C$9.18  C$14  7.53-10.24  BUY  11/19/10
Schnitzer Steel SCHN  $51.33  $67  37-60.12  BUY  10/21/10
Sims Metal Mgmt SMS  A$16.15  A$20  13-23.60  BUY  10/27/10
 TEG Group  TEG.L  




 33.50-48.5  BUY  7/2/10


Astec: shares fully valued; stimulus winding down, no catalysts for the stock unless Obama's infrastructure bill passes.
Bioteq: profitable Q3; record cash flow; first commercial Sulf-IX plant commissioned in Arizona - potential to be deployed in many industries.
Casella: beat estimates for the quarter for top and bottom lines; attractive valuation; raised revenue estimates
Covanta: mixed Q3 results, muted for the year. 
Darling: flat Q3; pending Griffin acquisition will solidify leadership position, provide needed raw material diversification.
GrafTech: raised 2011 estimates on closing of game changing acquisitions of Seadrift, world's 2nd producer of Graftech's feedstock and C/G Electrodes, a competitor. 
Headwaters: successfully fighting tough macro; improving balance sheet; street expectations remain low.
Horsehead: solid Q3 results; zinc prices firm; valuation at historic lows - it's time to buy this stock. 
Kadant: strong Q3; broad strength across product lines and geographies. Backlog, orders up sharply.
LKQ: shares fairly valued. Anticipate positive Q3 outlook.  
Metalico: BUY ahead of 10/29 results announced; expect bullish Q4 outlook, recent strengthing in prices and demand.  
Newalta: private C$125 million placement of senior unsecured debentures due in 2017 to reduce debt.
Schnitzer: strong quarter, upbeat outlook for ferrous volume growth and relatively stable pricing. .
Sims: mixed Q3 results, characterized by limited scrap flows and margin pressure, on-again/off-again demand trends. Solid results for non-ferrous scrap given relatively high prices and solid demand trends.
TEG: acquisition will double processing capacity and expand services. positioned to benefit from the UK's move to landfill bans; strong 2010 outlook.

Green Building

Company Ticker Price Target 52-Week Range Rating  Updated
Ameresco AMRC  $11.98  $16  9.34-14.17  BUY  11/4/10
Apogee  APOG  $10.75  $10  8.76-16.89  Hold  11/22/10
Autodesk  ADSK  $35.29  $42  22.50-37.37  BUY  12/2/10
ICF International  ICFI  $27.73  $30  20.86-30.15  BUY  11/5/10
Interface  IFSIA  $14.32  $13  6.90-15.10  Hold  10/28/10
Lime Energy  LIME  $4.30  $6  2.77-6.57  Speculative BUY  11/9/10
NCI Building Systems  NCS  $9.48  $17.50  8-21.50  BUY  9/8/10
Trex  TREX  $18.45  $18  15.39-26.51  Hold  12/2/10

Ameresco: excellent execution, raised 2010 guidance.
Apogee: Brazil acquisition is long term positive; continued downturn in non-residential construction, but limited downside.
ICF: solid Q3; $1.4B backlog, growing 21% from efficiency projects for wide variety of gov't and commercial clients.
Trex: proceeding with turnaround, despite recession.
Interface: benefiting from market shift to carpet tile; strong, growing presence in emerging markets; ongoing cost control efforts; shares are fairly valued, buy on dips.
Lime: good momentum, raised guidance. Beat revenue estimates for Q3, positive adjusted EBITDA for the first time in the past six quarters.   
NCI: exceeded estimates again; making solid progress despite difficult residential market.
Trex: disappointing Q3, competitor making in-roads. 

Efficiency/ Energy Storage

Company Ticker Price Target 52-Week Range $ Rating Updated 
Active Power  ACPW  $1.62  $2  0.70-1.62  Accumulate  10/28/10
Acuity Brands  AYI  $41.19  $41  30.13-47.91  Hold  8/10/10
 Aixtron  AIXG  $28  $32  16.28-38.96  Hold  8/10/10
American Superconductor  AMSC  $36.56  $50   24.35-43.95  BUY  11/3/10
Badger Meter  BMI  $41.89  $45  32.58-44.71  Hold  10/21/10
Baldor Electric  BEZ  $41.46  $47  24.67-43.31  BUY  10/28/10
Beacon Power  BCON  $0.35  $1.50  0.28-1  BUY  8/10/10
C&D Technologies CHP  $0.93  $1  0.88-3.12  Hold/SELL  4/21/10
Capstone Turbine  CPST  $0.76  $1  0.62-1.45  Hold/Accumulate  11/10/10
Comverge  COMV  $6.63  $8.50  5.88-13.25 Accumulate  11/9/10
 CREE  CREE  $58.50  under review  46.60-83.38  Hold  11/24/10

Day4 Energy

 DFE.TO  C$0.80  C$0.83  0.33-1.32  Speculative BUY  11/9/09
Dialight  DIA.L  




 192-456.5  BUY  11/4/10
Echelon  ELON  $7.98  $10  6.85-14.09  Hold  11/4/10
Elster Group  ELT  $15.74  $20  13.50-16.15  BUY  11/10/10
EnerNoc  ENOC  $30.56  $43  24.10-37  BUY  11/5/10
Enersys  ENS  $29.78  $40  19.49-29.78  BUY  11/11/10
Esco Techn.  ESE  $36.85  $43  24.55-40.69  Hold/Accumulate  11/12/10
Exide Technologies  XIDE  $7.18  $8.25  3.60-8.72  Accumulate  11/8/10
Fuel Tech  FTEK  $6.53  $8  5.15-11.07  BUY  11/8/10
Itron  ITRI  $62.96  $80 52.05-81.95  BUY  10/28/10
Maxwell Technologies  MXWL  $15.56  $17.50  10.16-19.28  BUY/Accumulate  10/29/10
Nexxus Lighting  NEXS  $1.83  $3  1.54-6.18  BUY  11/15/10
Orion Energy Systems  OESX  $3.88  $5  2.10-6.35  BUY  10/2710
Polypore  PPO  $32.74  $40  10.48-36.99  Accumulate  11/5/10
Power Integrations  POWI  $35.01  NA  16.75-37.15  NA  2/23/10
Power-One  PWER  $11.18  $17.50  2.52.-13  BUY  10/29/10
Rubicon Techn  RBCN  $25.31  $36  13.20-35.90  BUY  11/5/10
RuggedCom  RCM.TO  C$17.24  C$21  11.19-22.30  BUY  11/24/10
Satcon Technology  SATC  $3.57  $4.50  2-4.53 Hold/BUY  12/2/10
Telvent**  TLVT  $23.24  $32  16.57-41.65  BUY  11/19/10
Ultralife Batteries  ULBI  $5.34  $5  3.42-5.50  Accumulate  10/28/10
Universal Display  PANL  $26.13  $27  10.30-26.98  BUY  11/5/10
 Veeco Instruments  


 $39.94  $34  22.77-54.50  Hold  10/26/10
Zenergy  ZEN  85p  200p  84-151  BUY  3/23/10

Active Power: record Q3 results; expect continued sales growth in coming quarters.   
Aixtron: very strong quarter, but shares fairly valued given digestion period in industry.
American Superconductor: Q3 sales in-line but earnings jump, strong backlog, raised estimates.  Chinese wind market continues to drive growth; entering solar market.
Badger: Strong quarter driven by stimulus. potential to raise prices and win business in 2011 supports near term valuation.
Baldor: Q3 well above estimates; upcoming requirements for super-efficient motors.
Beacon: secures DOE loan guarantee, significant milestone. Quarter's results in line. 
C&D: completed new financing, but at a significant price; concerns about balance sheet.
Capstone: positive margin for first time but revenues fall short, impressive back log, but expansion necessary.
Comverge: target reduced from $11; Q3 missed revenue & EPS targets. Short term outlook weaker, but strong on longer term.   
Cree: price war among LED Tier 1 suppliers could pressure margins and near term estimates.
Dialight: target raised from 365p. In-line quarter; industrial LED lighting shows strong growth; UK traffic market taking off.
Echelon: encouraging quarter; pioneering role in European smart grid projects, no catalysts now.
Elster: advanced metering leader has strong product lines, impressive profitability, growing presence in smart grid.
EnerNOC: record Q3; expect mild growth in 2011, followed by strong growth in 2012 from demand response, energy efficiency business, and expansion into key EU markets.
Enersys: target raised from $30; revenues, EPS beat estimates; battery markets reviving; high margin product expansion and growth opportunities in Asia shape near-term outlook. 
Esco: target raised from $35; soid quarter, record orders drive growth across all business units.
Exide: target raised from $6.75; revenue and EPS beat estimates; positive outlook for the rest of 2010; battery markets continue to improve. 
Fuel Tech: operating conditions remain challenging, potential for modest improvement in 2011. 
Itron: important collaboration with Cisco; guidance conservative; record backlog of $1.7B.   
Maxwell: strong Q3 revenues, earnings fall short; poised for growth in Chinese hybrid bus & EU auto markets; and in stop/start in cars.  
Nexxus: disappointing Q3; sentiment close to bottoming. High quality product but adoption suffering from price-sensitive markets.
Orion: attractive valuation; efficiency upgrade trends improving and almost always include lighting. 
Polypore: target raised based on growth prospects; battery demand driving growth. Speeding up capacity expansion, reducing debt.  
Power-One: another strong quarter; raised estimates for 2010-2011 on strong solar demand. 
Rubicon: sapphire prices rising, pricing guidance is conservative; shares should appreciate in near term but remain volatile over coming quarters, especially as prices reach peak next year. 
RuggedCom: bullish outlook; top market share in smart grid networking space. $52M acquisition of Belden should close this year. 
Satcon: attractive entry point; improving balance sheet; raised 2011 estimates to reflect strong backlog, robust demand in North America; inverter shortage no longer an issue, expect moderate ASP pressure.
Telvent: softer revenue, but stronger earnings; bullish outlook remains; strong backlog, bookings. 
Ultralife: Q3 EPS was double estimates; global demand trends supportive. 
Universal Display: OLED space growing; beat estimates; waiting on Samsung agreement to fully lever market position.
Veeco: strong quarter, but relying on China to offset slowdown. Cyclical digestion period in equipment industry.
Zenergy: 2 high temp superconductor products commercialized; good growth potential over the next 12 months.  


Company Ticker Price Target 52-Week Range Rating Target
5N Plus  VNP.TO  C$5.33  


 4.40-7.74  BUY/Hold  1/14/10
Arise Technologies**  APV.V  C$0.20  C$0.90  0.18-0.66  SELL  8/18/09
Ascent Solar  ASTI  $4.26  $2.25  2-6.19  Reduce  11/4/10
ATS Automation  ATA.TO  C$6.08  C$8.75  5.46-8.45  BUY  11/4/10
Canadian Solar  CSIQ  $13.54  $18  8.99-33.68  BUY  11/19/10
Carmanah Technologies  CMH.TO  C$0.60  C$1.10  0.56-0.87  BUY  11/11/10
China Sunergy  CSUN  $4.12  NA  1.36-6.40  NA  1/11/10
Conergy AG**  CGY.DE   €0.72  NA  0.34-1.90  NA  
DyeSol  DYE.AX  A0.87  NA  0.62-1.15  NA  
Energy Conversion Devices  ENER  $4.86  $3  3.76-12.75  Reduce  11/10/10
Ersol Solar  ES6.DE  €106.43  NA  92-112  NA  
E-Ton Solar  3452.T  TWD77.60  NA  62.10-121.50  NA  1/11/10
Evergreen Solar  ESLR  $0.69  $0.60  0.62-2.10  Reduce  8/10/10
First Solar  FSLR  $138  $180  98.71-153.30  BUY  10/29/10
GT Solar  SOLR  $9.46  $12  4.51-10  BUY  11/8/10
Hoku Scientific  HOKU  $3.03  $2  2.09-3.78  Sell  11/5/10
JA Solar  JASO  $9.47  $13  3.70-10.24  BUY  11/10/10
LDK Solar  LDK  $6.14  NA 3.75-14.27  NA  1/11/10
MEMC  WFR  $12.08  $11  9.19-16.99  Hold  11/2/10
Phoenix Solar AG  PS4.DE  


 €39  25.63- 45.12  Accumulate  7/13/10
Power-One  PWER  $4.15  $5.50  0.82-4.81  BUY  3/29/10
Q-Cells AG**  QCE.F  €4.92  €5.70  4.62-19.25  Reduce   5/18/10
Real Goods Solar  RSOL  $3.20  $6  1.98-4.80  Speculative BUY  11/4/10
ReneSola  SOL  $4.93  NA  2-7.90  NA  
SAG Solarstrom  SAG.DE  €4.45  €5.50  2.29-4.80  BUY  8/25/10
SolarFun Power  SOLF  $10.16  $15  5.09-13.48  BUY  11/10/10
Solar Millennium  S2M.DE  €30.64  NA  6.11-45  NA  
SolarWorld AG**  SWV.DE  €10.15  €9  7.86-17.64  BUY  8/10/10
Solon AG**  SOO1.DE  €4.75  €4.50  3.72-11.50  Reduce  6/1/10
Spire Corp.  SPIR  $4.21  Discontined Converage  3.28-9  Reduce  4/5/10
SunPower  SPWRA  $13.20  $17  9.61-26.35  Accumulate  11/19/10
Suntech  STP  $7.67  $8  7.53-18.78  Hold  11/17/10
Systaic AG  SJK.DE  €1.13  €0.70  0.88-7.75  Reduce/SELL  5/28/10
Trina Solar  TSL  $22.32  $38 14.85-31.89  BUY  11/30/10
Westinghouse Solar  WEST  $0.54  $1  0.51-1.76  BUY  10/21/10
Yingli Green Energy  YGE  $11.14  $12  8.31-19.11  Hold  11/22/10

5N: price target reduced from $6.25; this is the third quarter that results are below expectations.
Arise: Balance sheet risk too high.  
Ascent: flurry of positive announcements; lower than expected Q3 revenues, but gaining BIPV traction in Europe. Received crucial UL certification, which allows them to sell in US. Should be catalyst for the stock but maintain Sell rating because of slower than expected manufacturing ramp; stock will begin to be valued on fundamentals as commercial volumes ramp in 2011. Needs capital in 2011.  
Canadian Solar: solid Q3; orders strong, diversifying from Germany, where there's downside risk. On track to achieve a scale, cost structure, vertical integration to be in strong position if demand softens in 2011.
Carmanah: under-valued, above average growth prospects, strong balance sheet.   
ENER: despite 2 improving quarters, outlook for next few quarters remains negative.   
Evergreen Solar: good quarter, but target reduced from $1. Potential to grow following build out of China JV. 
First Solar: strong Q3, but lower margins; raised 2010 guidance.  Capacity doubled by 2012.
GT Solar: stellar quarter beating top and bottom line estimates; $1.16B backlog; raised guidance for 2010, 2011; plans share repurchase. 
Hoku: getting debt financing, but interest payments climbing. Low volumes, margins expected.
JA Solar: record revenues, raised guidance. Among the strongest balance sheets in solar PV.
Phoenix: bellweather European plant operator should grow substantially in 2010. 
Power-One: impressive growth and improving operations. Strong 2010 outlook.
Q-Cells: target cut from €6.50. Restructuring to regain competitiveness; diversifying into module mfr and distribution, project development. 
Real Goods: Q3 beat estimates on revenue and earnings; margins up strongly; good play on CA solar market.
SAG: revenues surge 145% y/y, well ahead of estimates, boosting profitability. Refocused strategy on project development paying off in addition to German pull-forward from expiring feed-in. 
Solarfun: strong Q3 after joining with strategic investor, $30B Hanwha Gp, marks new era of access to finance, construction, partnerships.
SolarWorld: Q2 well ahead of estimates; 69% y/y revenue growth; benefiting from strong sales prior to German feed-in cut. Flush balance sheet. Strong growth for 2010.   
Solon: revenues grew 132% y/y, EBIT breakeven expected in Q2. Faces mountain of debt - received refinancing lifeline.
Spire: discontinued converage due to deteriorating performance and lack of investor interest.
SunPower: under-valued stock; strong pipeline and expected cost improvements support strong 2011 outlook.   Demand exceeding supply.
Suntech: strong volume, revenues, but earnings challenged by margins. Shares will underperform peers in short term. Pricy wafer capacity acquisition/future expansion could stress already heavily levered balance sheet.
Systaic: weak Q1, company existence in question. Previous CFO misled investors on company's balance sheet; internal turbulence, cash flow problems.
Trina Solar: strong Q3 on higher than expected shipments, market share gains; raised 2011 estimates on positive industry trends of strong demand and pricing. Investors skittish as euro trends lower, but Trina has diversified revenues across key markets and cost structure can withstand price declines more than peers.
Westinghouse Solar (formerly Akeena): nearterm pain, long term gain. Divested residential installation business, negatively impacting revenue, but reduces expenses. Distribution business is more scalable in long term.
Yingli: Raised 2010, 2011 guidance; announced capacity expansion; potential margin erosion, but diversifying outside Germany.


Company Ticker Price Target 52-Week Range Rating  Target
A-Power Energy  APWR  $13.45  NA  3-21.04  NA  1/11/10
Broadwind Wind Energy  BWEN  $4.95  NA  2.60-12.49  NA  1/11/10
Clipper Wind** CWP.L  75p  100p  75-179  Reduce/Accumulate  6/9/10
EDP Renovaveis  EDPR  €4.71  €7.50 4.65-4.75  BUY  8/10/10
Gamesa**  GAM.MC  €6.74  €6.75  6.66-16.20  Hold  7/30/10
Iberdrola** Renovables  IBR.MC  €2.68  €4  2.36-3.51  BUY  7/30/10
Japan Wind Development  






 NA  Japan Wind
Nordex**  NDX.F  €7.24  €6  6.53- 13.89  Reduce  


PNE Wind  PNE3.DE  €2.06  €3.50  1.59-2.49  BUY  6/15/10
REpower Systems  RPW.DE  €118  €140  117-148  Hold/BUY  6/2/10
Theolia**  TEO.PA   €3.09  NA  1.09-5.48  NA  
Vestas Wind**  VWS.CO  DKK288  DKK250  247-398  Hold/Reduce  8/10/10

CanHydro: TransAlta agrees to buy company for $5.25 per share in an all-cash offer. Investors recommended to tender to the offer.
Clipper: after 3 years of losses and the CEO stepping down, United Technologies took a 49% stake, bringing in much needed cash and mfr/logistics excellence. Should be profitable in 2011.
EDP: gross profit up strongly on new installations, but net income down more than expected.
Gamesa: target reduced from €9.50; Q2 mirrors industry slow-down, but cost controls keep GAM in black. Idle capacity and intense competition for turbine manufacturers. 
Iberdrola: trades below book value. stable electric prices and new capacity; 93% of production covered by feed-in tariffs for 2010. Wind farm operators stronger than turbine producers right now. Stronger balance sheet than EDP, double the order pipeline.
Nordex: target reduced from €11; wind industry faces continued headwinds, substantial over-capacity.  
Nordex: production down 40% and sales down 35% y/y; almost all sales in Europe, China stalled. Breakeven earnings. Low orders in Q1.
PNE: much higher than expected Q1 results; developing 53MW of projects; raised €28M, bullish outlook.  
Repower: 27% increase in profits y/y with margin growth. Will pay dividend of €1.57 per share for 2009/10. Unlike peers, orders increasing.
Vestas: likely to continue facing hard times. Weak US market, low natural gas prices, challenging competitive landscape.  

Geothermal/ Wave Energy

Company Ticker Price Target 52-Week Range Rating  Target

Alter Nrg

 NRG.TO  C$1.82  C$2  1.12-2.69  Hold  11/17/10
LSB Industries  LXU  $22.39  $22  10.62-23.81  Hold  11/9/10
Ocean Power Technologies**  OPTT  $6.90  NA  3.78-11.22 NA  
Ormat Technologies  ORA  $28.19  $29.50  25.80-44.13 Hold  11/4/10
Raser Technologies  RZ  $1.02  NA 0.88-4.80  NA  11/2/09
US Geothermal**  GTH.TO  $0.95  $1.80  0.83-2.09 Accumulate  2/10/10
WaterFurnace**  WFI.TO  C$24.75  C$31.50  23.95-32.15  BUY  11/12/10

Alter Nrg: speculative risk profile keeps shares volatile. 
LSB: Q3 missed, but business turning the corner. Shares fairly valued. 
Ormat: Q3 exceeds estimates because of higher electricity prices, but low growth prospects in near term.   
US Geothermal: undervalued compared to peers; strong company, good pipeline. Will need more cash to grow portfolio and reach profitability.
WaterFurnace: revenue, earnings modestly below estimates; perfect storm muting near-term growth despite impressive market share gains, but medium- to long-term outlook is strong. 3.6% dividend yield. Exceptionally well run, clean balance sheet.

Biofuels/ Transport

Company Ticker Price Target 52-Week Range Rating  Updated
BYD Company  1211.HK  HK63.55  NA  13.38-88.40  NA  
Canadian National Railway  CNI; CNR.TO  C$68.48  C$78  50.75-68.58  BUY  10/27/10
Canadian Pacific Railway  CP; CP.TX  C$64.89  C$75  42.05-66.72  BUY  10/21/10
Clean Air Power  CAP.L  




 17.41-42  BUY  5/14/09
Dynamotive Energy  DYMTF  $0.15  $1.10  0.13-0.51  Hold 1/11/10
Fuel Systems Solutions  FSYS  $38.52  $38  24.50-52.53  Hold  11/5/10
Gushan  GU  $3.70  $4  2.95-7.65 Hold  11/30/10

Neo Material Technologies






3.31 - 6.25

 Hold  11/15/10
Westport Innovations**  WPRT; WPT.TO;  $17.76  $13.75  7.05-21.34  Hold  8/10/10
Zongshen PEM Power Systems  ZPP.TO  C$0.95  C$1.20  0.90-1.57  Hold  11/17/10

Clean Air: raised £2.4M, reducing risk
Canadian National Railway: beat estimates, EPS up 23%. Good buying opportunity.  
Canadian Pacific Railway: strong but slowing sales expected as volumes normalize.
Fuel Systems: mixed Q3 diversifying outside Italy.
Gushan: mixed Q3; acquiring copper recycler Jin Xin to provide diversified revenues; rising raw material costs and ongoing consumption tax issue keeps biodiesel production low. 
Westport: revenue increased 17% y/y; lower shipments offset by higher margins, lower costs. Shipments impacted by wait and see approach pending clarity on natural gas incentives for fleets. Signed agreement with Volvo Powertrain.
Zongshen: missed Q3 estimates; temporarily weak industry conditions. 6th largest Chinese motorcycle manufacturer after acquisiton, but market is mature and competitive.

Fuel Cells/Hydrogen

Company Ticker Price Target 52-Week Range Rating  Target Updated
Ballard Power Systems  BLDP  $1.71  $2  1.49-3.25  Hold  8/10/10
Fuel Cell Energy  FCEL  $1.10  $2.25  0.98-4.61  Accumulate  9/8/10
Hydrogenics Corp.  HYGSD  $0.23  $0.50  0.21-0.75  Hold  2/9/10
Plug Power  PLUG  $0.53  $1  0.49-1.35  Hold  3/15/10
Quantum Fuel Systems  QTWW  $0.51  $0.50  0.47-1.77  Hold  7/13/10
SFC Energy  F3C.DE  €5.59  €6.50  4.78-9.19  Accumulate  8/10/10

Ballard: mixed Q2; core business slow, but key customers remain. 
Fuel Cell: results beat estimates; near term order trends remain positive.  
Plug Power: backlog improving, enough cashflow for 1-2 years.
Quantum: lackluster revenue, supplying systems for Fisker Karma PHEV, to launch later in 2010, which should increase sales, but in the meantime reduced target from $1.
SFC Energy: Q2 missed; near term trends worrisome, but positioned for 2011 growth.  


Company Ticker Price Target 52-Week Range Rating  Updated
Aqua America  WTR  $17.27  NA  15.39-20.37  NA  
BWT AG**  BWT.AV  €20.15  NA 9.64-21.84 NA  
Calgon Carbon  CCC  $14.67  $21.50  11.75-18.35  BUY  11/2/10
Energy Recovery  ERII  $3.66  $4  3.08-7.28  Hold  11/4/10
GLV  GLV.A.TO  C$6.70  C$10 6.22-10.35  BUY  11/15/10
Insituform Technologies  INSU  $22.90  $24.50  17.75-28.38  Hold  10/27/10
Met-Pro  MPR  $9.35  $12  8.65-11.62  Accumulate  9/8/10
Nalco Holding Co.  NLC  $27.36  $33  20.15-29.25  BUY  10/27/10
Pentair  PNR  $33.21  $35  28.71-39.32  Hold  10/27/10
Pure Technologies  PUR.V  C$4.64  C$6.50  3.65-5.30  BUY  11/17/10
Rino International  RINO  $6  under review  5.68-35.15  BUY/Sell  11/17/10
Tetra Tech  TTEK  $23.87  $23.50  18-28.18  Hold  11/12/10
 Veolia Environnement**  VE  $32.39  NA  19.14-40  NA

Calgon: demand exceeds production. 
Energy Recovery: missed quarter's estimates, faces many short term challenges, but strong longer term potential. 
GLV: getting known outside of Canada for water treatment and recycling; sequential growth expected over next few quarters.
Insituform: risk/reward balanced at current levels. 
Met-Pro: continues growth while lowering costs; strong balance sheet, anticipate steady performance in FY2011.
Nalco: beat estimates, double digit growth in all segments, bullish guidance; undervalued; strong position in water treatment technology; emerging presence in multi-pollutant air emissions control.
Pentair: risk/reward balanced at current levels, but positive longer term on new energy and water efficiency products expand internationally.
Pure: record revenues in Q3; $23M in new contracts in the last 3 months. Leader in fast growing global niche, great business model: low capital intensity, high margins, recurring revenue.
RINO: dealing with fraud charges, revenues may be much smaller than reported. If fraud is as large as allega back to table of contents