Why Every Green Stock Portfolio Should Have Heat Pump Specialist WaterFurnace Int’l in It
Submitted by EnergyTechStocks.com
Question: Where was U.S. Energy Secretary Steven Chu when he recently announced that nearly $50 million of federal stimulus money will go toward advancing development of geothermal heat pumps?
Answer: He was in Fort Wayne, Indiana, where one of his two stops was a tour of the manufacturing facilities of leading heat pump firm WaterFurnace International Inc. (Symbol: WFIFF.PK).
When assembling, or expanding, a green energy portfolio, investors would wise to think about starting with WaterFurnace. Unlike many other green energy outfits, WaterFurnace actually makes money (more every year, it seems), and pays a cash dividend (which the company raised earlier this year).
The company knows how to pinch pennies, choosing to trade on the Toronto Stock Exchange rather a U.S. exchange in order to save money. While that makes WaterFurnance less visible to investors, it hasn’t hurt the company’s business, which has continued during the housing crisis and now, thanks to the White House, looks poised for further expansion.
The key to WaterFurnace’s success is market perception. The geothermal heat pumps the company makes and installs in residential and commercial buildings are seen by consumers as money-savers first, green energy sources second.
WaterFurnace is the poster boy for what has been called the orphan of the green energy movement, energy efficiency. Every green stock portfolio should also include other energy efficiency plays, like Cree Inc. (Symbol: CREE), which makes super-efficient light bulbs, and EnerNOC Inc. (Symbol: ENER), which saves both electric utilities and their customers money by using computer technology to shave peak power demand – what the industry calls demand response.
The Obama administration is trying to sell green energy on the basis of the jobs it will create. Chu and others should be selling it based on the money every American can save. By stressing how energy efficiency can offset the higher cost of cap-and-trade and other pending environmental legislation, the White House wouldn’t have such a tough time convincing a skeptical public.
The President himself needs to tour WaterFurnace’s manufacturing facilities.
September 4th, 2009 at 10:12 pm
It is true. Geothermal heat pumps really are money savers. Now with the tax rebates available they are also affordable to install.