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		<title>Energy Efficiency is Low Hanging Fruit in Credit Challenged Economy &#8211; We Like: PEFF.OB and ERII</title>
		<link>http://www.straightstocks.com/small-cap-and-micro-cap-stocks/energy-efficiency-is-low-hanging-fruit-in-credit-challenged-economy-we-like-peffob-and-erii/</link>
		<comments>http://www.straightstocks.com/small-cap-and-micro-cap-stocks/energy-efficiency-is-low-hanging-fruit-in-credit-challenged-economy-we-like-peffob-and-erii/#comments</comments>
		<pubDate>Fri, 23 Jan 2009 00:05:01 +0000</pubDate>
		<dc:creator>Small Cap Pulse</dc:creator>
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		<description><![CDATA[January 22, 2009 - Obamarsquo;s inauguration this week signals a change in the level of support that the alternative energy and clean tech sectors will get in Washington, and other world leaders know it. This week at the World Future Energy Summit in Abu Dhabu UN Intergovernmental Panel on Climate Change chairman Rajendra Pachauri said he expects the U.S. position on climate change at Decemberrsquo;s meeting in Copenhagen will be critical and will set the tone. Bush never took a lead role. 


That being said, attention to climate change issues has never been greater on a global scale because countries, all facing economic erosion on an unprecedented level, are all moving to a strategy which effectively kills two birds with one stone: infrastructure investment and investment in green technologies as a primary catalyst for stimulating their own economies. Obamarsquo;s $800 billion fiscal stimulus package is no different. nbsp;


The United Nations said that the upside (if there is any) to the current global crisis is that world governments are increasing their environmental initiatives including renewable energy and energy efficiency. Just last week South Korea and Japan announced their own respective ldquo;Green New Deals.rdquo; There has never been more support on a global governmental level for alternative energy and clean technology. 


So why have solar, wind, geothermal and other alternative energy and clean tech stocks been so battered? The 3, 5, 10 and 20-year forecasts for alternative energy remain pretty bullish, and continue to get more so, implying that there is a long-term growth trend which will be a common theme to alternative energy and clean tech stocks for the foreseeable future. Yet growth has been almost totally priced out of these stocks lately.


To be sure, there are near-term headwinds that each of these sectors face. Biofuels run up against a wall of challenges created by feedstocks. Issues of sustainability, food vs. fuel, and rising prices have all but crushed the U.S. ethanol industry. More promising are next generation biofuels, cellulosic technologies which promise to be immune from many of the challenges that the first generation faced, but carry some of their own ndash; like ability to scale. Brazil seems to be the only legitimate model, helped tremendously by its climate and geography. Because of that, it is a difficult model to replicate on scale. 


Solar stocks have been battered, trading at fractions on a PEG basis and low-single digits against earnings, EBITDA and sales. No one questions that growth for solar for the foreseeable future will be dramatic. Though Wall Street is presently piling on with criticism and concerns in the near term about oversupply in the polysilicon and module chains which will lead to margin compression, as well as concerns about the current economic environment creating credit constraints and delays for projects. 


Wind and geothermal companies face the same headwinds in the near term, relating to economic conditions and a typically higher level of capital expenditure required to get these projects off the ground. Interestingly, valuations in wind and geothermal havenrsquo;t compressed to the level that solar stocks have. 


One of the areas that we think should be more immune to economic headwinds is energy efficiency. While solar, wind and geothermal will all be critical contributors to making the U.S. more energy independent, less carbon intensive and in the longer-term, more energy efficient, technologies exist today which can dramatically reduce energy consumption, costs, and carbon footprints while reducing dependence on fossil fuels. And most importantly, they carry the cap ex requirements on the front end to be implemented and donrsquo;t depend as much on government subsidies to validate return on investment, or incentivize it, at best.


Energy efficiency is the lowest hanging fruit, we think, to dramatically improving energy efficiency. Through creating better building efficiency (buildings are responsible for about 70% of U.S. energy consumption), utilizing more efficient motors (electric motors represent more than 50% of all electrical energy consumed in the U.S.) and lower-energy lighting there is potential to cut billions of oil per day-equivalent of consumption. 


A recent study from McKinsey and Company states that nearly 40% of the countryrsquo;s emissions-reduction potential by 2030 is from improving energy efficiency. President Obamarsquo;s stated goal is to improve energy efficiency by 50% over that period. His $800 billion stimulus plan includes more than $21 billion on energy efficiency programs with $7 billion earmarked for grants to state and local government for energy efficiency programs. 


That we need energy efficiency programs on a national and global scale is generally not controversial. However, as with concerns about demand for renewable energy sources like solar, wind and geothermal, it can also be said about energy efficiency that the economics need to be compelling. Achieving these economic objectives to maximize energy efficiency and minimize energy waste requires less cap ex, and the ROI is faster. 


A few companies that we think are well-positioned as ldquo;pure playrdquo; energy efficiency companies are Power Efficiency (OTCBB:PEFF) and Energy Recovery (Nasdaq:ERII). 


Power Efficiency designs, develops, markets and sells Motor Efficiency Controllers (ldquo;MECSrdquo;) under its E-Save Technologyreg; brand and on an OEM basis. 


Products


sect;nbsp; Three Phase MECS are developed for sale into the industrial and commercial markets. Commercial Launch in Summer, 2008


sect;nbsp; Single Phase MECS are developed for sale into the residential appliance markets. Commercial Launch in Fall, 2008. 


We mentioned above that more than 50% of all electrical energy consumed in the U.S. is used by electric motors. The energy costs of running motors is typically many times greater than its initial purchase price. At a rate of $0.04/kWh, a typical 20-horsepower continuously running motor uses almost $6,000 in electricity each year, about 6x its purchase price. 


Power Efficiency is launching motor efficiency controllers into the industrial/commercial markets (three phase product) and residential appliance markets (single phase product). Estimates for the market opportunities here are $392 million (global three phase market) and $615 million (global single phase market). 


It has established OEM and channel partnerships with leading international firms like KONE, OTIS Elevator, ThyssenKrupp, Barrick Gold, Mitsubishi Electric and Berry Plastics, amongst others with installations for its three-phase product in Caesarrsquo;s Palace, the Denver International Airport, Macyrsquo;s, JFK International Airport and the Smithsonian, amongst others. And it has demonstrated energy savings of up to 40% for industrial applications and internal rates of return up to about 70% on its products. 


The company estimates that in the U.S. alone, the impact of its E-Save Technology on the manufacturing industry could produce up to $1.7 billion in cost savings, a reduction in 21 billion kWh, and a reduction in CO2 emissions bynbsp; 16 million tons. 


It recently launched its single phase motor efficiency controller for the massive residential appliances market, and entered into a partnership with IXYS (Nasdaq:IXYS) a semi-component firm to sell its product to IXYSrsquo; more than 3,000 customers worldwide that include major appliance manufacturers. We noted above the estimated global market opportunity here is about $615 million and think Power Efficiency is well-positioned to begin establishing sales in this market in 2009. 


Energy Recovery (Nasdaq:ERII) develops energy recovery technology that is utilized in the water desalination industry. 


Products


middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; PX Pressure Exchanger optimizes the energy intensive sea water reverse osmosis (SWRO) process which is about 98% energy efficient and reduces energy consumption by about 60% compared to conventional processes. 


The International Water Management Institute (IWMI) projects that by 2025, 33% of the worldrsquo;s population will live in countries with water scarcity. SWRO is a process which has grown at a rate of about 55% annually since 2002. nbsp;It is installed in more than 300 desalination plants worldwide and its technology is leveraged by more than 60 OEMs including GE, Veolia, Acciona and Doosan. Management estimates that its technology in the field has resulted in reduction of about 300MW relative to comparable plants with no energy recovery devices. 


At a rate of $0.08 per kWh-hour, the deployment of PX devices in plants in the field would result in annual electricity cost savings of about $210 million, and a reduction in CO2 of about 1.5 million tons per year. 


Our Take


We remain bullish an solar, wind and geothermal, and less so ndash; near term ndash; on biofuels (except in Brazil), and think the sector poised to best navigate the economic headwinds is energy efficiency. Costs to achieving energy efficiency goals are lower for implementing these technologies and the rate of return is faster. We think Power Efficiency and Energy Recovery are both well positioned in this respect, for near and long-term growth. 


Important Disclosure: The SCPEditor is LONG PEFF.OB and has no position in ERII. The information provided here and in the comments are for informational purposes only and are not a solicitation to buy or sell any of these securities. Investing involves substantial risk and you should evaluate your own risk levels before you make any investment. Past results are not an indication of future performance. The SCPEditor is the managing partner of Aspire Clean Tech Communications which is LONG PEFF.OB, and is on a monthly retainer of $6,500 to provide PEFF with corporate communications and strategic advisory services. Aspire has also received 40,000 shares of PEFFrsquo;s restricted common stock to provide these services. For any additional information about Power Efficiency, Aspire, or Small Cap Pulse, please contact Todd M. Pitcher at 760-798-4938.
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		<title>What do JFK, Ballagio and Otis Elevator have in common?</title>
		<link>http://www.straightstocks.com/small-cap-and-micro-cap-stocks/what-do-jfk-ballagio-and-otis-elevator-have-in-common/</link>
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		<pubDate>Fri, 16 Jan 2009 04:10:00 +0000</pubDate>
		<dc:creator>Small Cap Pulse</dc:creator>
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		<description><![CDATA[nbsp;nbsp;January 15, 2009 - More than half of all electrical energy consumed in the United States is used by electric motors. So improving efficiency for electric motors is one of the most basic and fundamental ways that businesses, consumers and the government can save energy, reduce operating costs and improve productivity.There are multiple approaches to doing this: making more efficient motors is an obvious one. But in many cases, motor inefficiency is a consequence of the load which the motors are powering. Cases where motors have to have enough power to drive a load at full capacity but where the load is, in fact, often light. These are some of the most frequent cases of motor inefficiency.One company that that is addressing this market is Power Efficiency (OTCBB: PEFF ), which has developed technologies which result in up to 40% savings to client firms in the industrial markets and has established proof-of-concept installations in several high-profile environments including the Bellagio hotel, Columbus International Airport, JFK International Airport, Smithsonian Institute, Las Vegas Convention Center and the Denver International Airport through leading partners/clients including KONE, ThyssenKrupp Elevator, Otis Elevator, Barrick Gold and Berry Plastics.The initial market Power Efficiency focused on to prove out the energy savings it can produce was the escalator market. This is an ideal proof-of-concept, because escalator motors are designed for an optimal load - 2 people on each stair - but they rarely operate in this optimal capacity. Consequently, they waste a lot of energy. Power Efficiency's technology senses the loads and adjusts electricity required accordingly. The result is 20% to 40% in energy savings.The worldwide market for elevator and escalator services is expected to growth at 5.4% annually through 2011, surpassing $57 billion and the market for escalators and moving walkways is expected to grow at 8.3% annually to $2.5 billion in 2011. (Source: Freedonia)Power Efficiency's goal is to become the industry standard for energy efficiency in this market. And it is making progress, having established client relationships with market leaders including Otis Elevator, ThyssenKrupp and KONE.Other markets that Power Efficiency is expanding into include granulators, cement mixers, and other large scale industrial applications. The potential for extending its technology into new industrial applications is pretty broad, so Power Efficiency's strategy is to establish OEM relationships and build a channel strategy so that it can leverage pre-existing sales forces. The appeal for companies to adopt its technology is fundamental: lower energy consumption, cost savings and longer product lifetimes.In the past year, Power Efficiency also developed a product based on its E-Savetrade; technology that can apply to the residential appliances market, targeting energy savings in washing and drying machines, refrigerators, air conditioners, etc. This market is massive, and is a major priority for the Department of Energy to support through its Energy Star program.In December, Power Efficiency announced a partnership with IXYS (Nasdaq:IXYS), a $300 million semiconductor component business with more than 2,000 clients, many of which, are appliances manufacturers. This sets the stage for Power Efficiency to leverage IXYS sales force and customer base to sell through into OEM engagements. The market opportunity here is impressive:There are about 9 million clothes washers shipped each year and 8 million clothes dryers shipped each year alone, in the U.S. At an ASP of $10 for its single phase product, the washer/dryer market alone is about a $170 million market, not to mention other applications for refrigeration and air conditioning.Power Efficiency 's stock trades lightly at about $0.16 to $0.20 per share, representing a current market cap of about $6.4 million. In 2008, the company was focused on transitioning its technology from an analog platform which was prohibitive in terms of cost and performance to scaling into full commercialization to a digital platform which works better, has more functionality and is cheaper to produce which is critical as the business looks to build OEM contracts.This year, we expect to see the business gain accelerate its industrial three-phase business and hit some key milestones for its single-phase residential appliance product. From an investment standpoint, the stock is compelling on multiple levels:middot; nbsp; nbsp; nbsp; nbsp; Strong insider ownership with the company's operators having invested millions into the business;middot; nbsp; nbsp; nbsp; nbsp; Validated technology with opportunity to scale business into escalator market with existing clients (KONE, ThyssenKrupp, Otis)middot; nbsp; nbsp; nbsp; nbsp; Moving into other industrial markets (plastics, cement/rock/mining)middot; nbsp; nbsp; nbsp; nbsp; Massive Blue-Sky with residential appliance product, which is initially validated through IXYS partnershipmiddot; nbsp; nbsp; nbsp; nbsp; Secular trends have never been better: regulatory pressure to adopt energy efficiency standards; incentive for businesses in a challenging economy to reduce energy costs and equipment maintenance costs; interest for consumers to reduce energy expensesmiddot; nbsp; nbsp; nbsp; nbsp; E-Save Technology has been validated by several leading utilities for rebates including: Southern California Edison, Excel Energy, SDGamp;E, Sempra Energy, Los Angeles Department of Water amp; Power, Nevada Power, Sierra Pacific and Anaheim Public Utilities.If Power Efficiency 's E-Save Technology were implemented across the relevant sectors in applicable motors throughout the U.S. manufacturing industry, it has the potential to produce savings of $1.7 billion in the U.S. alone. Again, the stock is trading at a current market cap of $6 to $7 million. We think the company is poised to deliver on inflection points across its business which should serve as catalysts for significantly higher valuations.At Aspire, we were happy to begin working with Power Efficiency to make its story and value proposition more well known on Wall Street. We don't see many companies that have the developed technology, customer relationships and perceived market opportunity that are trading at levels which make the situation as timely as this one is, in our opinion. We will continue to report on the company's progress and welcome anyone interested in learning about the story to contact us direct for further discussion at 760-798-4938.Important Disclosure: The SCPEditor is the managing partner of Aspire Clean Tech Communications which is LONG PEFF.OB, and is on a monthly retainer of $6,500 to provide PEFF with corporate communications and strategic advisory services. Aspire has also received 40,000 shares of PEFF's restricted common stock to provide these services . The information and trades provided here and in the comments are for informational purposes only and are not a solicitation to buy or sell any of these securities. Investing involves substantial risk and you should evaluate your own risk levels before you make any investment. Past results are not an indication of future performance.nbsp;nbsp;
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		<title>Power Efficiency (OTCBB:PEFF) Poised to Make Significant Contributon to Energy Efficiency Markets</title>
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		<pubDate>Fri, 16 Jan 2009 01:32:01 +0000</pubDate>
		<dc:creator>Small Cap Pulse</dc:creator>
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		<guid isPermaLink="false">http://www.smallcappulse.com/index.php/site/power_efficiency_otcbbpeff_poised_to_make_significant_contributon_to_energy/#When:17:32:01Z</guid>
		<description><![CDATA[January 15, 2009 ndash; More than half of all electrical energy consumed in the United States is used by electric motors. So improving efficiency for electric motors is one of the most basic and fundamental ways that businesses, consumers and the government can save energy, reduce operating costs and improve productivity. 


There are multiple approaches to doing this: making more efficient motors is an obvious one. But in many cases, motor inefficiency is a consequence of the load which the motors are powering. Cases where motors have to have enough power to drive a load at full capacity but where the load is, in fact, often light. These are some of the most frequent cases of motor inefficiency. 


One company that that is addressing this market is Power Efficiency (OTCBB:PEFF), which has developed technologies which result in up to 40% savings to client firms in the industrial markets and has established proof-of-concept installations in several high-profile environments including the Bellagio hotel, Columbus International Airport, JFK International Airport, Smithsonian Institute, Las Vegas Convention Center and the Denver International Airport through leading partners/clients including KONE, ThyssenKrupp Elevator, Otis Elevator, Barrick Gold and Berry Plastics. 


The initial market Power Efficiency focused on to prove out the energy savings it can produce was the escalator market. This is an ideal proof-of-concept, because escalator motors are designed for an optimal load ndash; 2 people on each stair ndash; but they rarely operate in this optimal capacity. Consequently, they waste a lot of energy. Power Efficiencyrsquo;s technology senses the loads and adjusts electricity required accordingly. The result is 20% to 40% in energy savings.


The worldwide market for elevator and escalator services is expected to growth at 5.4% annually through 2011, surpassing $57 billion and the market for escalators and moving walkways is expected to grow at 8.3% annually to $2.5 billion in 2011. (Source: Freedonia)nbsp;Power Efficiencyrsquo;s goal is to become the industry standard for energy efficiency in this market. And it is making progress, having established client relationships with market leaders including Otis Elevator, ThyssenKrupp and KONE. 


Other markets that Power Efficiency is expanding into include granulators, cement mixers, and other large scale industrial applications. The potential for extending its technology into new industrial applications is pretty broad, so Power Efficiencyrsquo;s strategy is to establish OEM relationships and build a channel strategy so that it can leverage pre-existing sales forces. The appeal for companies to adopt its technology is fundamental: lower energy consumption, cost savings and longer product lifetimes. 


In the past year, Power Efficiency also developed a product based on its E-Savetrade; technology that can apply to the residential appliances market, targeting energy savings in washing and drying machines, refrigerators, air conditioners, etc. This market is massive, and is a major priority for the Department of Energy to support through its Energy Star program. 


In December, Power Efficiency announced a partnership with IXYS (Nasdaq:IXYS), a $300 million semiconductor component business with more than 2,000 clients, many of which, are appliances manufacturers. This sets the stage for Power Efficiency to leverage IXYS sales force and customer base to sell through into OEM engagements. The market opportunity here is impressive:nbsp;nbsp;


There are about 9 million clothes washers shipped each year and 8 million clothes dryers shipped each year alone, in the U.S. At an ASP of $10 for its single phase product, the washer/dryer market alone is about a $170 million market, not to mention other applications for refrigeration and air conditioning. 


Power Efficiencyrsquo;s stock trades lightly at about $0.16 to $0.20 per share, representing a current market cap of about $6.4 million. In 2008, the company was focused on transitioning its technology from an analog platform which was prohibitive in terms of cost and performance to scaling into full commercialization to a digital platform which works better, has more functionality and is cheaper to produce which is critical as the business looks to build OEM contracts. 


This year, we expect to see the business gain accelerate its industrial three-phase business and hit some key milestones for its single-phase residential appliance product. From an investment standpoint, the stock is compelling on multiple levels:nbsp;nbsp;


middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Strong insider ownership with the companyrsquo;s operators having invested millions into the business; 


middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Validated technology with opportunity to scale business into escalator market with existing clients (KONE, ThyssenKrupp, Otis) 


middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Moving into other industrial markets (plastics, cement/rock/mining)


middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Massive Blue-Sky with residential appliance product, which is initially validated through IXYS partnership


middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Secular trends have never been better: regulatory pressure to adopt energy efficiency standards; incentive for businesses in a challenging economy to reduce energy costs and equipment maintenance costs; interest for consumers to reduce energy expenses


middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; E-Save Technology has been validated by several leading utilities for rebates including: Southern California Edison, Excel Energy, SDGamp;E, Sempra Energy, Los Angeles Department of Water amp; Power, Nevada Power, Sierra Pacific and Anaheim Public Utilities.nbsp;nbsp;


If Power Efficiencyrsquo;s E-Save Technology were implemented across the relevant sectors in applicable motors throughout the U.S. manufacturing industry, it has the potential to produce savings of $1.7 billion in the U.S. alone. Again, the stock is trading at a current market cap of $6 to $7 million. We think the company is poised to deliver on inflection points across its business which should serve as catalysts for significantly higher valuations.nbsp;nbsp;


At Aspire, we were happy to begin working with Power Efficiency to make its story and value proposition more well known on Wall Street. We donrsquo;t see many companies that have the developed technology, customer relationships and perceived market opportunity that are trading at levels which make the situation as timely as this one is, in our opinion. We will continue to report on the companyrsquo;s progress and welcome anyone interested in learning about the story to contact us direct for further discussion at 760-798-4938.nbsp;nbsp;


Important Disclosure: The SCPEditor is the managing partner of Aspire Clean Tech Communications which is LONG PEFF.OB, and is on a monthly retainer of $6,500 to provide PEFF with corporate communications and strategic advisory services. Aspire has also received 40,000 shares of PEFFrsquo;s restricted common stock to provide these services . The information and trades provided here and in the comments are for informational purposes only and are not a solicitation to buy or sell any of these securities. Investing involves substantial risk and you should evaluate your own risk levels before you make any investment. Past results are not an indication of future performance. nbsp;
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		<title>WorldWater &amp; Solar Technologies Corp. (WWAT.OB) Releases 3Q Results, Highlights Large Scale Projects</title>
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		<pubDate>Tue, 11 Nov 2008 17:01:02 +0000</pubDate>
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		<description><![CDATA[Along with records revenues, WorldWater &#38; Solar Technologies Corp (WWAT) also reported a gross loss in the third quarter, ending Sept. 30. WorldWater reported a $2.3 million gross loss for the quarter. Offsetting that news was a significant increase in revenues to $6.5 million compared with $4.4 million over the same time last year. Installations [...]]]></description>
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		<title>WorldWater &amp; Solar Technologies’ (WWAT.OB) Stock Falls to 52-Week Low on Second Quarter 2008 Earnings Report</title>
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		<description><![CDATA[WorldWater &#38; Solar Technologies Corp. (WWAT.OB), a full-service, international solar electric engineering and water management company with unique, high-powered and patented solar technology, recently announced its second quarter 2008 financial results. The company’s shares fell to a 52-week low earlier this week after reporting a net loss of $24 million, or $0.12 per share for [...]]]></description>
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		<title>Vail Resorts, Inc. (MTN) Set to Acquire Colorado Mountain Express</title>
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		<pubDate>Mon, 30 Jun 2008 19:54:48 +0000</pubDate>
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		<description><![CDATA[Vail Resorts, Inc. (MTN), based in Bloomfield, Colorado, is a mountain resort operator with subsidiaries that also handle real estate development and lodging.  Vail’s mountain subsidiary operates the mountain resorts of Vail, Beaver Creek, Breckenridge and Keystone in Colorado, Heavenly in California and Nevada, and the Grand Teton Lodge Company in Jackson Hole, Wyoming. [...]]]></description>
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		<title>Worldwater &amp; Solar Technologies Corp. (WWAT.OB) Posts 10 Fold Increase in High-Powered Solar Generator Motor Revenues</title>
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		<description><![CDATA[A new market is one where a company can follow the herd or look for new and potentially profitable ways to take advantage of it. The easy way is to work within the more conventional end-use applications. The more difficult way is to step back, look for a need to fill within the market, and [...]]]></description>
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