Energy Savers New Theme: More Buys  

MORE ON MY NEW Energy Savings Theme.   To review, just last Friday I introduced my latest theme.  An investment theme is more than recommending you buy this stock or that.  It’s about finding a trend, generally an economic trend based on changing economic fundamentals, which should support business for some time in a whole industry sector, whereby most all companies doing business in that sector are buoyed and pushed forward by some bullish tide.  Like today’s increase in wealth in many developing countries translating into a larger global middle class and thus increased demand for energy, metals, foodstuffs and most all commodities.  Thus leading to a long term commodity bull market whereby most any commodity and companies involved rises over time. 

Well, my newest theme is that the recent high and higher costs of energy, metals and other industrial manufacturing inputs is going to drive businesses into finding and employing most any/all energy savings devices, products and services.  Since most companies are becoming believers that energy is going to stay high priced for a long, long time to come.  Thus last Friday’s recommendation of those five stocks from the Energy Controls sub-category of my Alternative, Clean Green shopping list.  Again, those symbols are CPST, BCON, WGOV, MXWL and CHP.  And again, please check into these carefully before you buy.  Three are low priced stocks and normally I don’t even track stocks that low priced but in this case of looking for new breakthroughs to come in clean energy, I’m looking for and buying possible up and comers.  Disclaimer!  I own tiny amounts of two of these five and am interested in buying the others.

Today, let me add to my recommended list of Energy Savers.  First off, these energy saving stocks can come from far and wide places, sectors and industries.  Since the common thread is that they all have some product, service, etc. which can save businesses energy & thus big money in today’s new high energy cost world.  Down the line I plan on applying the same concept to the public as well.  Also finding companies that offer products and/or services which can save us as individuals energy and thus money but for now with businesses flush and consumers squeezed, I’ll concentrate on energy savers for business.  So, again, below are four more companies going on my Energy Savers shopping list today for you all to consider.

ENERGY SAVERS

                                                Price      Mkt Cap Business Line

COMV    Comverge Inc.      $12.73     278m       Environmentally  responsible peak electric demand reduction

ENOC     EnerNOC, Inc.       $15.65     309m       Manages electricity consumption across networks

ITRI        Itron, Inc.               $94.75     3191m     Computerized electric, gas & water meter reading

BMI        Badger Meter        $50.04     730m       Measures & controls flow of liquid & gas, like water meters

Disclaimer!  I own a tiny amount of COMV and may buy some of the other two as well.

Chart Views:  Comverge & EnerNOC are basically in the same industry niche, energy management, and have similar histories.  Both were new IPOs last spring, Comverge in April 2007 at $18 and EnerNOC in May 2007 at $26.  Both rose nicely until late last year, COMV hitting $38.78 and ENOC hitting $50.50, both peaking on October 18^th.  Then late last year, early this year, while the general market sank, both companies experienced lots of insider selling, possibly after lock-up periods ended, which knocked them both down.  Then on February 27^th EnerNOC plunged on worse than expected earnings and COMV fell in sympathy, both falling on analysts’ realizations that there were no real metrics on how to value them.  After falling further, both have been building bases every since.  You can see their current prices above.  So neither are in uptrends but patient investors start nibbling on both now,  buying them on weakness.

Schwartz View:  Itron & Badger Meter are both meter readers but have different charts.  BMI is in an uptrend like my first five recommendations from last Friday and is a recent entrant on the IBD 100 list of leading companies so you know the fundamentals are good.  ITRI in trading in a sideways pattern.  Net, net, I would buy small amounts of all four stocks above and add them to the five buys from last Friday in a new Energy Savers portfolio.  Buying small portions of a lot of stocks is like building your own little mutual fund.  In this case a sector specific mutual fund so don’t go overboard, especially right now while the stock market is still in bear market mode.