In This Edition...

• Nanotechnology - The Stimulus Plan's Stealth Beneficiary 
• Freshening Up Our Previous 'Charts of Interest' 
• From the Blog - Cancer Vaccines Validated, Reader-Suggested Ethanol Idea
• This Week's New Watchlist 

Nanotechnology - The Stimulus Plan's Stealth Beneficiary

It can pay to read the fine print, even though your senators and congressmen didn't really do the same when approving the American Recovery and Reinvestment Act. Even today - weeks after the bill became a law - we're finding some compelling tidbits that may translate into opportunities for small and micro cap companies.

It's no big secret that President Obama's a huge fan of clean and green-friendly energy; much of that agenda made its way into stimulus plan. Solar power and wind power were presumed to be the big beneficiaries of the stimulus package. However, there's another energy field that's getting some love (i.e. money) we haven't heard much about yet. 

Not that it's a ton of dough, but the U.S. Department of Energy Secretary Steven Chu recently announced that $256 million had been set aside specifically to foster energy efficiency. Here's the breakdown: 

• $156 Million is earmarked for the improvement in the efficiency of industrial equipment, waste energy recovery, and the combination of heat and power for better efficiency (they're all built around the same idea). 
• $50 million has been budgeted for better energy efficiency (less energy use) among communication and technology companies, which use massive amounts of power running servers and cooling systems. 
• Another $50 million has been set aside for the development of materials that could make energy consumption cleaner and/or more efficient. This could affect everything from flex fuel cars to batteries (energy storage) to materials used in solar panels. This portion of the budget's explanation specifically mentioned nanomaterials and nanomanufacturing. 

The first one is a point we're not going to belabor now, as we've discussed the concept ad nauseam to date.... China Energy Recovery Inc. (CGYV) is designing and building the very equipment called for in the first section of the plan - waste heat recovery systems. Other companies build the systems for smaller (and non-coal) operations, but nobody really compares to CER on the waste heat recovery front. 

Another detail we found interesting was aim to make our nation's computer hardware and server farms more efficient, though it's not exactly clear how or if that will involve any publicly-traded companies. 

The earmark we found most compelling, however, was the $50 million set aside to study improvement we could make with the materials used in energy creation. Nanomaterials and nanomanufacturing were explicitly referenced.
 

Ring a Bell?

You may recall nanotechnology was a short-lived buzz word from a couple of years ago; the idea quickly faded from the headlines when the average layperson couldn't connect the dots between the technology and potential real-world applications. The industry didn't die though - it was just the buzz that died.

We're not naive enough to think $50 million worth of funding is going to be enough to energize the nanotechnology industry again. However, we do think it's a strong sign of its validity as far as energy conservation is concerned, and that's the key... proving the nanotechnology serves a purpose in the real world will pave the way for all the organizations in the field (including the publicly-traded ones).

We'll dive into specific, energy-oriented nanomaterials stocks at a later date; we only wanted to introduce the idea today to set up what we think will be a series of commentaries to be published in the near future.

We will do one thing today though.... whet your appetite with few specific applications of nanotechnology that look very promising when it comes to more effective energy production. 

Nanomaterials thus far have been able to...

• Improve solar cells' collection and conveyance capacity (nanoparticle inks and germanium nanocrystals are at the heart of better photovoltaic cells, and nanoparticle quantum 'dots' harvest light better than ordinary silicon) 
• Improve the storage capacity of batteries (nanostructure anodes, which use silicon instead of graphite, in lithium-ion batteries has been shown to quadruple the battery's capacity) 
• Improve the efficiency of combustion engines 

Anyway, stay tuned - we're going to try to convert these concepts into actionable, investment-worthy ideas in future editions. In the meantime...
 

	Short and Sweet

We don't have a lot of room in this edition to freshen up all the charts we've found particularly interesting recently, but a handful merit attention.

Herzfeld Caribbean Basin Fund Inc. (CUBA) 

It's a little awkward to apply technical analysis to a mutual fund or ETF, since a fund's value is strictly an aggregation of the underlying stocks' value. Nevertheless, the chart of a fund or ETF can still indicate potential breakout points and problem areas for a collection of equities as a whole.

Anyway, the Herzfeld Caribbean Basin Fund - which invests in publicly-traded stocks of Caribbean Basin countries - has become an interesting possibility. 

You can forget about tracking down the actual values of the underlying companies unless you want to do some serious digging on your own. That's not what got our attention anyway. It was the chart we found intriguing.

In the short run, a couple of key accumulation waves have brought the fund back to life; it's above some key moving averages for the first time since late 2007.

Longer-term, CUBA looks like it's trying to break above a falling resistance line that's been in place since the peak from early 2007.

Like we said, you don't want to read too much into a fund's chart. However, you can bet the rest of the market isn't yet thinking about tapping into South and Latin America again. This could be an easy and relatively safe way to do so.

As for other tickers we've talked about...

ParkerVision Inc. (PRKR) and Riverview Bancorp Inc. (RVSB) were highlighted last week, as bullish and bearish possibilities, respectively. Neither has moved much since then, but nothing's really changed with our thoughts on each.

We also discussed speculative Spreadtrum Technologies Inc. (SPRD), though somewhat hesitantly.... the company was to announce earnings after the closing bell rang on the same day we took our look. As it turns out, the response to earnings was uneventful, and the stock has mostly continued higher (albeit it on weak volume)

We're dropping Allied Defense Group Inc. (ADG) and EnDevCo Inc. (EDVC) from our bullish watchlist as we suggested we might last week. We are, however, keeping Mirani Brands Inc. (MRIB) on our bearish watchlist - the breakdown may have finally kicked in today.

Oh, by the way, we dropped Flow International Corp. (FLOW) from our bullish watchlist last week, but it's back on it now thanks to a move from $1.92 to $2.62. We're still not sure about the stock, as the volume behind the recent rise has been pathetic, and there seems to be resistance around $2.60. Nothing wrong with keeping tabs on it though. 
 

	From the Blog

• Cancer Vaccines Validated and Mainstreamed, Could Boost BVTI, GNBT, DNDN, OGXI, CVM, IMUC 
• Reader-Suggested Ethanol Penny Stock Idea - Bluefire Ethanol Fuels, Inc. (BFRE) 

	This Week's Watchlist

Here's the latest batch of stocks we suggest keeping tabs on. It's a lot more than usual, though it's not like all of them will pan out. It's just better to have more ideas than you can ever use rather than the other way around.

• Richardson Electronics Ltd. (RELL) - in a consolidation phase, resistance around $4.20 
• U.S. Gold Corp. (UXG) - the wedge broke, but the breakout failed 
• Gabelli Healthcare & Wellness (GRX) - higher lows, resistance at $5.00 
• G-Willi Food Intl. (WILC) - this one resumed the trend after all that volatility
• Flow International Corp. (FLOW) - back on the radar after a modest rally 
• Intricon Corp. (IIN) - still struggling 
• PDI Inc. (PDII) - being removed from the watchlist today 
• CFS Bancorp Inc. (CITZ) - being taken off the watchlist today 
• Aristotle Corp. (ARTL) - the overbought problem was solved, uptrend resumed 
• Collectors Universe Inc. (CLCT) - gapped up... probably best to lock in any profits and wait for a pullback 
• Herzfeld Caribbean Basin Fund Inc. (CUBA) - yes, it did break out of consolidation, this chart's worth a look
• Flow International Corp. (FLOW) - back on the radar after a modest rally 
• Oxygen Biotherapeutics Inc. (OXBO) - slowly trying to reverse its downtrend
• JAG Media Holdings Inc. (JAGH) - soared last week, but had nothing to stand on once there.... falling sharply
• Far East Energy Corp. (FEEC) - hate to chase anything, but the buzz here is getting louder
• China Tel Group Inc. (CHTL) - we're seeing massive volume today, thought it's unclear why
• Solar Power Inc. (SOPW) - terrible volume, but an interesting chart
• Neogemomics Inc, (NGNM) - this chart looks one stumble away from a complete implosion, suppot at $1.30
• Pacer International Inc. (PACR) - the sellers will just not let up
• Oncothyreon Inc. (ONTY) - another overbought chart that's itching for a fall 
• Affymetrix Inc, (AFFX) - could the long drought finally be over? 

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