| Now that all of the inauguration hoopla has | | | | funding which could be provided by the |
| subsided, the incoming Obama administration is | | | | government, Composite should benefit from the |
| expected almost immediately to roll up their | | | | upcoming surge in clean-energy projects brought |
| sleeves and commence efforts to stimulate our | | | | on by ready to shovel stimulus spending and state |
| floundering economy by providing funding for | | | | renewable portfolio standards. |
| "shovel ready" projects. | | | | Raser Ready to Shovel |
| In addition to the growing population of | | | | In the geothermal space, I like Raser Technologies |
| unemployed Americans, increased government | | | | (NYSE: RZ) for a multitude of reasons. But for the |
| spending will also create opportunities for | | | | sake of this discussion, RZ's ability to build out |
| investors that place their bets in the right sectors. | | | | functional geothermal power plants in 12-18 |
| If the "shovel ready" stimulus package is | | | | months makes the company very attractive as |
| approved and as significant as many hope that it | | | | massive funding is considered for ready to shovel |
| will be, here are 3 key areas that I'll be looking for | | | | projects. RZ set the world record for building a |
| to prosper. | | | | geothermal power plant recently and has 7 more |
| Alternative Energy | | | | in the works. Since Raser has proven its ability to |
| Since President Obama has already trumpeted its | | | | turn low temperature geothermal resources into |
| desire to kick our foreign oil habit and invest | | | | energy in record time, a stimulus program could |
| heavily in alt-energy over the next decade, this | | | | surely give the company a boost. |
| sector should be a shoe in for stimulus package | | | | Healthcare Technology |
| funding. | | | | The new President has also pledged to conduct a |
| Solar Outlook Could Brighten With Substantial | | | | massive healthcare overhaul. In addition to |
| "Shovel Ready" Funding | | | | providing Americans with quality medical coverage |
| However, it will be that technologies that can be | | | | and strengthening overall public health, modernizing |
| rapidly deployed in an economically efficient | | | | the U.S. healthcare system has been identified is a |
| manner that will benefit the most. Since solar | | | | primary objective of future healthcare reform. |
| energy systems can be installed rather quickly, | | | | Although total health care spending represented |
| shovel ready stimulus would likely have a very | | | | 17% of US GDP in 2007or $2.4 trillion (NCHC), the |
| positive impact on this sector of the clean-energy | | | | health IT market represents just 2% of the $973 |
| industry. | | | | billion U.S. IT sector (Gartner Inc.). In order to |
| While a multitude of factors including lower | | | | improve quality of care throughout the country |
| poly-silicon prices (a key component in solar | | | | and bring thousands medical facilities out of the |
| panels) and a disastrous credit market aligned to | | | | Stone Age, billions of dollars could soon be |
| cast a cloud of negativity on the market in '08, | | | | injected into the health care information |
| the "Obama Effect" may cast rays of success on | | | | technology sector. |
| the solar sector in 2009. The U.S. Department of | | | | Some leaders in the space that I feel deserve a |
| Energy Solar Showcase Program is already | | | | look include: |
| exhibiting how far solar power technology has | | | | Cerner Corp (NASDAQ: CERN) - The leader in |
| progressed over the past decade and additional | | | | hospital installed electronic records provides a suite |
| funding could significantly expand the initiative while | | | | of software solutions that help maximize |
| driving overall adoption of solar systems. | | | | efficiencies and control costs in medical facilities. |
| If future government spending on viable | | | | Cerner has maintained a solid compound annual |
| clean-energy projects meets the nation's lofty | | | | growth rate of 14% over the past 3, 5, and 10 |
| hopes, solar wafer manufacturers will cash in. | | | | years and has amassed a client network of more |
| Companies to watch in this sector if/when the | | | | than 6,000 hospitals, medical practices, |
| package gets approved include Suntech Power | | | | pharmacies, etc. With a solid installed base of |
| Holdings (NYSE: STP), market leader First Solar | | | | customers and a proven technology offering; |
| (NASDAQ: FSLR) and LDK Solar (NYSE: LDK). In | | | | CERN is well positioned to benefit from increased |
| the sub-$5 range, Evergreen Solar | | | | government spending on health care organizations. |
| (NASDAQ:ESLR) is worth a look. | | | | QuadraMed (NASDAQ: QDHC) - The electronic |
| The emerging solar product manufacturer is | | | | records software provider serves a base of |
| ramping up capacity in Massachusetts, a hotbed | | | | 2,000 health care providers and has developed a |
| for growth thanks to the Green Communities | | | | best of breed revenue management solution for |
| Act, which enacts the most aggressive | | | | medical facilities that could become more widely |
| clean-energy policy of any U.S. state. | | | | adopted if the government starts shelling out |
| ESLR's revenues were up 31% for the first 9 | | | | funding in record fashion. |
| months of 2008 and the company reportedly has | | | | Merge Healthcare (NASDAQ: MRGE) - The |
| an order backlog of approximately $1.7 billion. | | | | provider of medical imaging technology recently |
| Despite recently lowering revenue estimates for | | | | partnered with IBM to equip medical professionals |
| both 2008 and 2009, Thomas Weisel Partners' | | | | with solutions that allow them to access medical |
| forecasts Evergreen's revenue to more than | | | | images from mobile devices including the iPhone. |
| double from $113.1 to $360.5 this year. | | | | Representing a breakthrough in the medical field, |
| Analysts believe that the decision to close its pilot | | | | the system eliminates the need for additional |
| facility in Marlborough Mass, in favor of a more | | | | storage capacity and specialized systems to |
| efficient new plant in Devens, Mass, could facilitate | | | | accommodate large downloads. The solution |
| profitability in 2009 although it resulted in a $30 | | | | should be high on the wish lists of many medical |
| million hit to the balance sheet in 2008. Evergreen | | | | professionals if/when significant government |
| claims to be the "industry leader in efficient silicon | | | | funding is doled out. |
| consumption" and aspires to reduce its usage | | | | Telecommunications |
| from 5 grams per watt currently to 2.5 by 2011 | | | | Between Obama's shovel ready plan and |
| and .5 by 2014. | | | | aspirations to make high-speed web access a |
| The major potential upside here is that if | | | | reality in every U.S. household, the broadband |
| Evergreen can continue to increase manufacturing | | | | communications market should receive a |
| output while simultaneously slashing costs, the | | | | welcomed boost by a potential shovel ready plan. |
| company could eventually be capable of | | | | Currently, about $6 billion has been allotted out of |
| generating electricity at prices competitive with | | | | the $825 economic stimulus bill to promote |
| fossil fuels. Demand created by Obama's stimulus | | | | ubiquitous broadband. While many leading telecom |
| package and renewable energy mandates like the | | | | providers worry that's not enough, its not a bad |
| Green Communities Act should only help the | | | | start and the speed with which the government |
| cause. | | | | has moved thus far is quite promising. |
| Wind Power and Geothermal Also Poised to | | | | Although the major providers won't be able to |
| Benefit | | | | make the necessary upgrades alone, industry |
| Recent approval of the Cape Cod wind farm | | | | leaders including AT&T (NYSE: T) Verizon |
| project in Massachusetts is expected to pave the | | | | (NYSE: V), Comcast (NASDAW:CMCA), Time |
| way for more large-scale wind power projects in | | | | Warner (NYSE: TWX), and Qwest |
| the U.S. going forward. Growing popularity of wind | | | | Communications (NYSE: Q), will benefit from the |
| as a power source and the government's plans to | | | | plan. These stocks all got battered in 2008 and |
| ramp up spending on renewable energy create a | | | | could bounce back if the stimulus works. |
| very favorable environment for related | | | | Cogent Could be a Sleeper |
| companies. | | | | Teleco network provider Cogent Communications |
| Some of these include General Electric (NYSE: | | | | (NASAQ: CCOI) now carries 17% of all web |
| GE), a leading global wind turbine manufacturer, | | | | traffic and could be awarded some major |
| FPL Group (NYSE: FPL), a leader in U.S. wind | | | | government contracts in plans to equip the nation |
| power generation, and American Superconductor | | | | with high speed Internet move forward. The |
| (NASDAQ: AMSC), a provider of electrical | | | | company reportedly provides network access for |
| systems used in wind turbines to increase | | | | 50% to 98% less than competitors including |
| electrical grid capacity. | | | | AT&T and Verizon and has sparked a trend |
| Interested in a small cap world gamble? Take a | | | | that could cut annual telecom spending by $300 |
| look at Composite Technology Group (OTCBB: | | | | billion. If the government's looking for network |
| CPTC). The company's DeWind, wind turbine | | | | band with, why not go with the lowest bidder? |
| segment grew related revenues from $17.6 million | | | | As unemployment continues to soar, economic |
| in FY2007 to more than $40 million in FY2008. As | | | | stimulus can't seem to come fast enough. While it |
| of 12/15/08, CPTC had $288 million in potential | | | | may take some time for funding to get approved |
| turbine orders under contract, $50,000,000 of | | | | and begin pumping life into the three sectors |
| which the company feels are firm and deliverable | | | | mentioned above, now is a great time to begin |
| during FY2009. | | | | evaluating opportunities in each. Hopefully, this |
| Now placing a greater focus on joint ventures | | | | piece plays a key role in getting you to do so. |
| such as wind farm projects that rely on outside | | | | |