Green Spotlight for Wednesday, September 8th: ECOB

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.

Eco Blu Products, Inc. (ECOB)

Protecting the Environment, Homes and Health

Eco Blu Products caught our eye as a pioneer in the building sector developing products and techniques that contribute to sustainability of the environment while protecting health.  The Company treats fresh cut wood through an environmentally neutral process that provides significant advantages before and after construction.  Bluewood™ coating protects wood from rot at the milling site and lumber yard where it can sit for up to 18-months or more.  It also effectively dries the wood and strengthens the wood from imperfections such as knots often rendering construction integrity 1.5 times greater than similar concrete structures.  The advantages to building with wood treated with the Bluewood™ continue long after a structure is complete using the revolutionary EcoShelter™ line of prefabricated structures, Eco Blu Products’ revolutionary building techniques or simply by using Eco Bu Wood Components.  Bluewood™ treated timber contains a natural fire retardant, protects against mold, protects against termites and significantly increases the lifetime of the structure though increased structural integrity of each treated piece of wood.

We were surprised by the lack of innovation pervasive in the building sector leading to unnecessary wasting of timber resources, manufacture of sub standard structures, and significant health threats such as mold.  Conversations with the management of Eco Blu Products highlighted a charismatic management team with decades of experience in the construction sector coupled with the integrity necessary to make an industry changing impact.  The enthusiasm Eco Blu’s management has for sustainability and protecting the public from structure related health risks has spawned an impressive international philanthropic initiative.

Eco Blu has instituted a unique initiative to educate and empower the next generation of “at risk youth” domestically in addition to innovating disaster solution structure engineering, techniques and pre fabricated models deployable in almost any climate worldwide.  The domestic philanthropic effort combines many progressive initiatives from fundraising efforts to training “at risk youth” to become the next generation of contractors building environmentally neutral structures.  In fact, the Company is developing a large “Green Community” in Florida which will serve as a showcase for the Bluewood™ components, pre fabricated structures, engineering, building techniques and EcoShelter™ process on the site earmarked for training “at risk youth” who will assist in the construction, Bluewood™ treatment process and other evolving initiatives instituted by Eco Blu Products. 

We were so impressed by Eco Blu Products that the only problem we encountered when analyzing this stock was how to keep such an exciting story concise as there are so many developing stories and revenue streams.  We’ve attached a link of the Company and Bluewood™ recently featured on the News in San Diego highlighting a housing development in Chula Vista featuring Eco Blu Products’ in the framing.  Additionally, the Company has been featured on shows such as Extra, Extreme Makeover and several prime time news spotlights. 

A cursory financial analysis of the Company ranks it as undervalued at current prices around $0.15.  We see significant upside both looking at fair market valuation considering current contracts the company is generating revenues from and the likely prospects of rapidly increasing revenues in the 4th Quarter onwards.  In our opinion, there will be a consistent flow of material news and growth in the Company both near term and long term leading us to project this Company is priced at an attractive level for accumulation at current ratios anywhere up to $.50.  These numbers should only increase moving forward at which time we will likely reevaluate our initial consensus for levels we feel are attractive for taking a position in this stock.

In short, Eco Blu Products possesses all the factors most important for a high growth potential Green Stock.  Specifically the Company increases the sustainability of the environment, utilizes environmentally neutral technology, protects the public from health hazards such as mold which has been linked to cancer, a progressive management team with a corporate culture of integrity and Eco Blu Products goes a step further through an overwhelming commitment to philanthropic endeavors.  This is currently one of our favorite Green Stocks we see as having considerable upside at current prices.

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 occuring 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.