Green Spotlight for Monday, August 30th: DLYT

Green Spotlight - Companies Making a Difference

SpeculatingGreen.com created the “Green Spotlight” in response to our subscriber’s requests to highlight companies with unique product / service categories that are making a significant impact in the Green Sector.  Savvy investors today are voting with their investments as well as at the polls. Investors are realizing that a significant impact to the sustainability of our resources on Earth can be made by becoming a shareholder of Green Stocks.  We are constantly scouring the wires, databases, periodicals and continuously researching the Green Sector to find innovative companies we consider to be undiscovered growth opportunities.  These companies range from development stage companies to market capitalizations into the billions yet all share similar business philosophy. Business philosophy based upon the manufacture of products or providing services that increase sustainability of the Earth’s resources while providing the means for lowering consumption of resources.  These are stocks you can feel good about owning during these turbulent financial times during while increases in funding and regulation are occurring supporting the Green Sector.

Dais Analytic Corporation (DLYT.OB)

Reducing Consumption of Electricity and Water

Dais Analytic Corp. is a unique nanotechnology company with applications that contribute to sustainability by decreasing demand for electricity and economically purifying water.  The technology applied by the company is truly revolutionary and can be described as smart, high-tech Saran Wrap.  The polymer based ultra thin membranes possess very unique characteristics at a molecular level that only allow certain substances to move through it.  In most cases, the material has a particular attraction to the H2O molecule and thus water related applications are the primary commercial applications Dais Analytic Corp. currently is profiting from.

ConsERV™ and NanoAir™ are two of the company’s applications benefitting the Green Sector by decreasing the consumption of energy at the source for heating and cooling of commercial structures without the use of toxic Freon.  This is one of the enlightened philosophies that drew us to Dais Analytic Corp.  - essentially the business approach it takes toward sustainability is not just supplying a commercial structure with Green Energy but also lowering the building’s consumption of energy by up to 65%. 

Dais’ technology works on the heating and air conditioning (HVAC) units of the commercial structure through a proprietary Energy Recovery Ventilator that houses the Polymer Membrane controlling the humidity of the air passing into the heating or cooling system.  Stated simply, during the winter months humidity is increased in the air supply while in the high humidity periods of summer it is decreased which in either cases increases the relative efficiency of the system up to 65%.
The Company has vastly expanded its sales and marketing division and formed strategic partnerships with market leaders in the commercial air systems manufacturers.  In combination with the ConsERV™ technology, NanoAir™ uses similar proprietary Polymer Membranes to purify the air coming through ventilation systems to the parts-per-billion exceeding even the strictest requirements for hospitals. 
The affordable installation cost of these technologies in addition to the savings to the commercial structure resulting from installation is providing record setting revenue to Dais Analytic Corp. we only see as growing moving forward. 

Another application for the Polymer Membrane technology we found particularly promising from both a short-term and long-term analysis of revenue is Dais’ NanoClear™ technology used for both the desalination and treatment of waste water.  Clean water is fast becoming one of the scarcest resources in most regions of the Earth today and dehydration, water borne illnesses and contaminated water contributes to the death of millions of people every year primarily in developing nations.  NanoClear technology uses Polymer Membrane nanotechnology to allow only the H2O water molecules to pass through its solid surface in essence filtering the water cleaning all impurities.  The results are amazing, resulting in a parts-per-billion level of purity eclipsing conventional purity requirements ranging into the parts-per-million. 

Dais has received an enormous amount of interest from the dry regions of the Middle East and developing regions of China including a $48 million dollar contract with Mongolia that will be reflected in part on the coming financial quarter for the company and through FY2011.  Assuming current economics of the business and approximately 35% gross margins, the EBITDA of this $48  million contract alone is approximately equal to the current market cap, making this an enormously undervalued stock, in our opinion. 

An analysis of the fundamental financial ratios for Dais Analytic Corp. which trades under the ticker (DLYT) in relation to revenue from contracts and potential expanding market share encourages us to acquire this stock readily under a dollar as we see huge growth opportunity far beyond the current price of around $0.30.  This is a stock with a considerable amount of upside potential from a company you can feel good about owning stock in.  It is an opportunity to contribute something to preserving the world’s scarce resources by investing in Dais Analytic Corp. and owning a piece of a company with technology that is making a difference today.

Green Spotlight for Thursday, August 26th: BGNN

Green Spotlight - Companies Making a Difference

SpeculatingGreen.com created the “Green Spotlight” in response to our subscriber’s requests to highlight companies with unique product / service categories that are making a significant impact in the Green Sector.  Savvy investors today are voting with their investments as well as at the polls. Investors are realizing that a significant impact to the sustainability of our resources on Earth can be made by becoming a shareholder of Green Stocks.  We are constantly scouring the wires, databases, periodicals and continuously researching the Green Sector to find innovative companies we consider to be undiscovered growth opportunities.  These companies range from development stage companies to market capitalizations into the billions yet all share similar business philosophy. Business philosophy based upon the manufacture of products or providing services that increase sustainability of the Earth’s resources while providing the means for lowering consumption of resources.  These are stocks you can feel good about owning during these turbulent financial times during while increases in funding and regulation are occuring supporting the Green Sector.

B Green Innovations (BGNN.OB)

A Company Making Us Feel Good About Throwing Out the Trash and Burning Rubber

The mission statement of B Green Innovations is to create products that facilitate the elimination of waste.  This Company caught our eye for its unique approach to what it calls the 3 R’s of Green packaging "Reduce", "Reuse", and "Recycle."  B Green Innovations took this enlightened philosophy one step forward by adding a 4th R, "Remove" and it’s this ideology that is one reason we find the company so attractive. 

The latest product line developed by B Green Innovations is a line of degradable/biodegradable compactor and trash bags comprised of additives that meet ASTM D 6954 Standard Guide for Exposing and Testing Plastics that Degrade in the Environment by a Combination of Oxidation and Biodegradation, as well as D5338 Standard Test Method for Determining Aerobic Biodegradation of Plastic Materials under Controlled Composting Conditions.  In short, B Green Innovations has  a line of compactor/trash bags that are approved for food storage by the FDA and biodegrade similar to leaves in less than 200 days whereas standard petroleum based plastic bags take upwards or 100 years to partially biodegrade.  The potential impact of this product line on the environment is enormous considering billions of garbage bags clog our landfills, oceans and blight our countryside every year.  This product is so environmentally friendly that a bag can literally be filled with garbage and placed in a landfill where the bag will naturally degrade  in under 200 days similar to the degradable contents within.  We see this as a revenue stream with incredible upside that has yet to be priced into the stock.

B Green Innovations not only is tackling the dirty job of shrinking our landfills, but also is actively shrinking the massive piles of used tires that litter the Earth.  All of our car tires and even bicycle tires eventually find their way to enormous tire waste facilities towering like large hills and notorious for environmentally devastating tire fires that can take weeks or even longer to contain.  It is estimated that 290 Million waste tires are generated a year in the United States alone and the vast majority of these find their way to tire waste facilities.  B Green Innovations is again making a huge impact on eliminating waste by coming up with a line of products made 100% from recycled tire rubber.  These products themselves reduce noise pollution, reduce wear and increase the operating efficiency of heavy equipment such as washing machines, dryers, compressors, generators and other commercial equipment.  B Green Innovations markets these products under the brand names VibeAway™ and EcoPod™.  These 100% recycled tire rubber products are used to eliminate the noise pollution, mechanical wear, and efficiency issues related to the massive vibrations set off by heavy equipment.  We are very impressed by the distribution partners B Green Innovations currently boasts including  ARP Supply, Brand Source, Ferguson, Johnston Supply, Mega Store USA, and Wagner with more in negotiation. 

We spoke to BGNN's CEO Jerry Mahoney concerning the business philosophy of the Company and were impressed by his professionalism and commitment to making an impact upon eliminating waste.  Many companies give lip service to being Green but few take initiative in tackling some of the biggest environmental issues we have today namely landfills and tire waste facilities.  B Green innovations takes the notion of being a Green Company one step further by adding the 4th R namely "Removal" to the equation of sustainability and this is another example of why we think this is a company to invest in. 

The Company is manufacturing in distribution partnerships with Fortune 500 companies and has trademarks and patents filed creating additional value to what we see as an undervalued stock.  Trading under the symbol BGNN, the Company recently announced a reduction in its authorized shares by nearly 40% and a corporate stock buyback plan further increasing implied valuation.  This stock is a bargain trading at under a penny currently with significant upside potential in revenue streams that we believe aren't currently priced into the stock. Beyond the growth potential in this stock, this is an investment that makes a direct impact on the elimination of waste and is doing your part in preserving the Earth by being Green.

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Jenson Daily Green Piece

"Traders Intuition, More on Bubbles, Government Interaction with Green Market, Electric Vehicles, Entertainment Industry Obsession /w Being Green, Feedstock Biofuels, Jatropha's Potential and more!"

Date: 4/14/2010

My main column today highlighted some of my offbeat humor and candor as I speculated that evidence for the coming market Bubble was proven by the International Bubble Convention at the Exposition Center next to Disneyland (in Southern California).  We often miss the signs that stand right in front of us and this is one of the times that seriously force us to pause in order to take note.  The notion of intuition as an influencing factor for the seemingly unexplainable success of some traders is a proven fact.  Phrases such as, “I felt the strong market today…” is quite common to heard coming from trading desks and a sampling of the vast array of other traders.  Some would argue that a Bubble convention is merely coincidence but we do not believe in coincidence.  Advanced Physics has created some interesting mathematic proofs for various hypotheses relating to String Theory and Universality Theory.  Case and Point the first news story I read off the wires this morning was about a Congressional Brief that Parks and Empty spaces were important elements of Aesthetic, Environmental and Sustainability in dealing with Urban Sprawl.  The PR was released by ASLA the Professional Association of Landscape Architects which evidently has been in existence since approximately 1890.  Of course, the Government makes extremely obvious statements but we were caught off guard by the use of Sustainability.  A rather large word for a Congressman we would venture, but here clearly a third ingredient for a coming Market Bubble, government recognition.  This recognition always goes far beyond lip service.  In fact, it seems in the vast majority of Bubbles, the government through a lack of regulating evolving business, beneficial tax treatment or financial incentives for a given sector creating an artificial competitive advantage.  This causes a skew in pricing as competition is eliminated or forced to give up exurbanite percentages of market share.

In the case of a coming Green Bubble we believe that a radical shift in market share could be a very good thing for the environment at the peril of the fossil fuel behemoths.   Honda and a myriad of smaller manufacturers have functioning electric scooters that could well avert a global disaster if petroleum powered vehicles were used to supply the exponentially increasing demand for transportation in third world countries.  Ford, Honda, Toyota and Tesla now offer high performance electric vehicles that are quickly replacing a huge portion of the gas powered vehicles throughout the world.  In Los Angeles, Larry David from Curb Your Enthusiasm explores the comical nature of the Entertainment Industry’s obsession with being Green.  For anyone who travels in Southern California the sheer number of battery powered vehicles on the road is nothing short of staggering. 

We have been following developments in the biodiesel and alternative fuel space for some time now.  There have been mini bubbles that developed around the hype of ethanol and more recently hydrogen powered vehicles.  Any biodiesel that is comprised by feedstock consumable by humans is destined to fail as increasing population demands in combination with decreasing arable acreage is creating huge inflation of related commodity prices.  We can’t help but comment, “Remember the Hindenburg…” whenever we read about promising hydrogen technology.  The radically volatile nature of hydrogen causes us great concern as it is nearly impossible to safely transport and we shudder to think what might happen in a serious automobile accident.  Jatropha is the most promising biodiesel in our opinion.  An inedible bulbous seed that grows on a large plant composed partially of nitrogen and native to semi tropical regions throughout the globe, Jatropha is fast becoming the biodiesel of choice throughout the EU and worldwide.  We will analyze the biodiesel industry in a coming piece but note that close attention should be placed on this amazing plant.  Jatropha is but one attractive answer to the pressing question of what will become with the greatest per unit polluters on the road today…commercial trucks.  We truly did not believe that we would see battery technology capable of generating the power needed to move a 25 plus ton load.  Amazingly, we have begun to see a few incredible companies that already have such vehicles in production. 

Have a Green day…