(U.S. Energy Consumption Projections to the right are based on data from the U.S. Energy Information Administration Statistics Center)

Another company that helps with energy conservation is Nighthawk Systems (OTCBB: NIHK). Their product suite is designed to remotely monitor and turn electronic devices on and off. In our opinion, Energy Education, Inc and Nighthawk should join forces in some capacity!

Destiny, Florida is a 41,300-acre self-contained green community that will be designed to create environmental, social and economic stability for its residents. Destiny is America’s first eco-sustainable community and now has created its own 20 acre energy farm, Destiny Sustainable Energy Farm, in cooperation with public and private entities. This farm will be a prototype of sorts to showcase 21st century technologies for producing alternative fuel crops such as sweet sorghum, algae, jatropha, etc.

Commenting on the farm, Destiny founder Anthony V. Pugliese, III, recently stated
“Destiny’s Energy Farm will be a proving ground for technologies and practices of the future and is a testament to our commitment to create a truly eco-sustainable community in the state,”. “It’s just the beginning of building a city that operates with minimal impact on the environment and serves as a scientific hub where the latest green technology innovations will emerge.”

The current crop that has been planted to test the yield per acre of ethanol is sweet sorghum. This plant is resilient in the sense that it does not need as much water, fertilizer or ideal soil conditions as many others. The first harvest will be later this year and the goal of the Destiny Sustainable Energy Farm is to research crop species to maximize alternative fuel production for the City of Destiny.

The City of Destiny is the precedent being set for a truly sustainable lifestyle. With the help of green investors, green-collar jobs will be created to develop the economy of the city with alternative fuels.

It’s about time.

After more than a half-decade of demise, the greenback is making a run against foreign currencies, including the Euro and the precious English Pound.

The Euro hit its 6-month low of $1.465 on Tuesday while the Pound is at a two-year low. Even the Australian Dollar is down nearly 12% over the past 6 weeks from 98 US Cents to 86.

However, it’s not because analysts have found renewed hope in the U.S. marketplace. They’re just convinced that other economies appear to be falling by the wayside in even faster succession. I came across a quote today on the LA Times website that I feel captures the dynamic quite eloquently; in an article entitled: “The dollar’s new status: Strongman of global currencies“, blogger Tom Petruno comments:

“The driving force behind the dollar’s comeback, after six years spent mostly in decline: the perception that, even though the U.S. economy is struggling, things are rapidly getting much worse in other countries. Currencies tend to reflect the strength of their home economies, so the buck is now gaining at its rivals’ expense. “

D-Link Canada has recently released routers capable of dramatically reducing user power consumption. The eco-friendly features D-Link Canada has created have been added to their Xtreme N™ Wi-Fi internet routers to reduce energy costs without sacrificing performance.

The new technology is D-Link® Green Ethernet™, a smart power-saving technology that automatically detects link status and network cable length then adjusts power accordingly.The routers can also be set on timers, or a schedule, to turn the radio on and off at certain times to further save energy consumption. According to the company, using the scheduler to turn the wireless on and off during the day can save over 30% of energy consumed by the router.

In a recent press release, Lou Reda, vice president of channel sales, D-Link Canada stated “This announcement is an important one for D-Link Canada, as we continue to show our commitment to providing customers with new innovative ideas while not sacrificing performance or functionality,”. “By providing these new green upgrades to our most popular Wi-Fi routers, customers are able to help protect the environment while saving money in the process”

The introduction of the Green Ethernet™ technology in to the Xtreme N series routers exemplifies D-Link’s commitment to green technology and eco-activism.

The company aspires to become a leader in facilitating cost savings for consumers while also helping save the environment through a number of efforts including: manufacturing environmentally-responsible products, optimizing devices for ENERGY STAR certification, providing consumer education and recycling programs, and distributing the network technology industry brief titled “Green Computing and D-Link: The Green Movement and Specific D-Link Solutions Reduce Detrimental Impacts on the Environment.

Growing algae is easy; many people do it in their own backyard if they don’t properly maintain their pool! However, the main challenge with growing algae as a bio fuel is being able to create enough to be competitive with fossil fuels.

Solazyme claims they will be able to create the mass amount of algae needed to compete in the oil industry. CEO Jonathan Wolfson believes the company will be able to produce millions of gallons of algae-derived bio diesel in three years. The reasoning behind this belief stems from the company’s unique approach to growing the algae.

Solazme grows optimized algae in the dark in a large tank while feeding it with other plants. Once the algae is ready, it is fermented and turned into oil. In a very positive sign that the company’s technology will soon be mass commercialized, its process has recently been approved for use in diesel vehicles and existing oil refineries.

In regards to competition, Jonathan has recently stated that many companies relying on photosynthesis exclusively to grow algae are being overly optimistic in regards to the amount of land that is required to do so. Solazme plans to build a plant within the next two years gearing towards commercial production of three million gallons per year. If the company can succeed and produce a business model that does so economically, the energy sector will be forever altered.

With the oil prices so high, the demand for corn as a fuel source and food demands from China, the world is facing food shortages in less fortunate countries around the world. The old saying is apropos here, “Give a man a fish, feed him for a day; teach a man to fish, feed him for a lifetime.” We have to show the world how to grow and cultivate their own food sources instead of just giving them hand outs.

A way to teach those countries how to feed themselves, and teach us how to feed ourselves more efficiently, has been brain stormed at Columbia University. Professor Dickson Despommier of Environmental Health Sciences gave birth to the idea in his Medical Ecology class which examines the health consequences of a damaged environment. Over the last three years he has focused on the effects of agriculture on the environment which lead to his idea of Vertical Farms.

He gives the idea to the class of a community of 50,000 people who have no other food source than a vertical farm. The students had to figure out the size of the farm to sustain that community and the result was a 30-story building that covers a New York City block. One building of this size is equal to 588 acres of farm land. One hundred and ten of these farms could feed NYC instead of the expansive 64,680 acres of farmland equal to that.

Dickson says that the vertical farm is to farming as the skyscraper it to offices. He also believes we need to give as much attention to vertical farming as we did to space exploration. His goal is to replace all horizontal farming with vertical and let the land replenish itself. The farms would house plants and animals up to pigs. Cows, he said, would have to be raised elsewhere if desired. Nothing is new here, all the foods are being grown under roofs as we speak, but this would bring it all to one central location and make the community it fed more sustainable and would reduce emissions and cost from transporting food all over the globe.

With the sluggish summer months just about behind us, things are beginning to heat up with our portfolio companies. Electric Moto Corporation (OTCPK: EMOT) has fulfilled its search for a qualified new CEO. Union Dental Holdings Inc. (OTCBB: UDHI) recently notched its second consecutive quarter of profitability, and Legacy Holding (OTCPK: LGYH) has made its fully audited 2007 financial results available to the public and announced a year-over-year revenue increase of 537% over 2006.

In the world of larger stocks, one of my recent favorites, Sequenom (NASDAQ: SQNM) continues to garner attention after running from $5 back in April to nearly $21 recently on news that its non-invasive Down Syndrome test could soon become standard protocol in a $6-$8 billion global market.

New CEO Hits the Ground Running at Electric Moto

EMOT announced last week that early-stage investor Abbie Zands has taken the helm as Chief Executive Officer. The move was designed to allow former CEO, Ely Schless to accept the newly created position of Chief Technology Consultant (CTC) and focus on his strengths in the area of electric vehicle development. Don’t forget; Mr. Schless is the principal designer of the world record holder for the most number of miles completed by an electric car (the GM battery-swap proof of concept car). He has also developed prototype electric vehicles for the likes of Honda and Volkswagen.

With Ely now free to concentrate solely on technology development and Mr. Zands focussed on day-to-day operations, the company should be better positioned for growth going forward than it was previously with tech-minded Schless running the show. As Blade XT demo units begin shipping to both North American and European distributors employing a more business-minded CEO should be positive for the company as it transitions from R&D to production mode. For those of you not overly familiar with the company and its landmark product the Blade XT, here’s what Forbes Magazine writer Patrick Cooke had to say about EMOT’s Blade XTZ model in a 9/17/07 article:

“. . .an astonishingly quick, battery-powered motorbike called the Blade XTZ that equals or outperforms every gas-powered bike in its weight class (200cc–250cc). Best of all, it does so without making a sound”. . . “No high-pitched engine whine, no choking blue smoke, no teeth-grinding vibration. And at 178 pounds, it’s 25 to 50 pounds lighter and creates more torque (250 pounds) than most of its competition.”

The company also plans to soon add electric scooters to its product mix. A move that I believe could help out the financial situation immensely. In my opinion the next 6 months are “make or break” time for Electric Moto Corp.

Initial Blade XT units are hitting the market and the company is now run by both a highly esteemed technological mind and a long-time investor with optimizing shareholder value first on his list of priorities. Now it’s a matter of how well the offering is received by consumers. I’ll be watching closely over the coming weeks for sales related news. If it surfaces, I suggest contemplating taking an ownership position in the stock. If it doesn’t, there are plenty of other electric vehicle plays out there for you. One that I have come across recently and will speak about more in the future is Zero Air Pollution (OTCBB: ZAAP).

UDHI Reports Second Quarter Profit

Union Dental Holdings turned its second consecutive quarterly profit on revenues of $652,709 during Q2. The Company plans to grow significantly over the next 12-24 months by transitioning from itself from middle man to full service dental provider. I’ve been watching UDHI rather closely for the past few years and am quite intrigued by their business model and the fact that its CEO has consistently purchased shares on the open market since I first began researching the company

If you’re unfamiliar with the Company, here’s their business plan in a nutshell: UDHI aspires to become the premier dental service provider to America’s 15,000,000 plus labor union workers and their families. Recently surpassing the milestone of 1,9000 dental providers in its network, Union Dental has already made inroads with some of the nation’s larger labor unions including: (1) The Communications Workers of America (CWA) – (700,000 members); (2) The International Brotherhood of Electrical Workers (IBEW) – (750,000 members); (3) The United Association of Plumbers and Pipe Fitters (UA) – (300,000 members); and (4) The Association of Flight Attendants – Communications Workers of America (AFA-CWA) – (55,000 members).

With more than 20 years worth of experience and a member base now possessing $192,000,000 in annual purchasing power, UDHI is taking a major step in the right direction with its decision to open a full service dental facility in Coral Springs, FL. The new building is slated to open by the beginning of October and will perform all aspects of dentistry. Deeply rooted in the dental community and founded by a well-respected dentist, UDHI has publicly stated its ability to save patients between 20% – 30% on Porcelain-fused-to-metal dental crowns which typically range in price from roughly $600 to $900, as well as other prosthetics. Since union workers typically receive only $1,500 in annual allowable dental expenditures – that type of discount should be a major selling point for the company going forward.

All in all, I’m pleased to see Doc Green’s master growth plan coming to fruition. Now priced under a penny with about 100 million shares out, the stock is surely worth a second look as the company prepares to embark on a new stage of growth.

Legacy Reports Annual Results

Legacy Holding Inc. (OTCPK: LGYH) made its operating results for the 12 months ended 12/31/07 available to the public last week and they were pretty promising in my opinion. The emerging provider of green cleaning solutions for the semiconductor, solar cell, flat panel display and LED markets logged net income of $101,846 on revenues of nearly $1.1 million.

In addition, Legacy unveiled plans to acquire a synergistic manufacturing company and begin introducing its process technology to tier-one customers including Intel, Texas Instruments, and Samsung. With their cleaning equipment already gaining traction in the semiconductor space through repeat installs with Tyco, licensing of Legacy’s process technology should provide a nice additional revenue stream going forward.

Zevotek is Still on Our Radar Screen

Although we haven’t heard much out of the company in over a month, Zevotek Inc. (OTCBB: ZVTK) is still on our radar screen. The company’s landmark Ionic Bulb product generated nearly $350,000 in revenues during its first ever quarter of sales ended 3/31/08 and holds a great deal of potential for the future if properly marketed. The bulb has been stocked by the likes of Walgreen’s and Amazon.com over the past 6 – 10 months and has sold quite well given the fact that is has been marketed pretty lightly to date. In effort to increase consumer awareness for the product, Zevotek recently completed filming of a promotional infomercial that should be hitting the airwaves soon, one would think.

More on the product: In addition to being 4X more energy efficient, lasting up to 10X longer, and using 50% to 80% less energy than regular incandescent light bulbs, the Ionic Bulb comes equipped with a patented air purifying microchip ion emitter that is powered by the bulb’s own energy. The bulb silently emits negative ions that help clear the air of smoke, dust, pet dander, and odors. In all honesty, I’ve seen it work in person and it is impressive.

Now all management needs to do is ramp up sales and advertising efforts to get some legs behind its product. The infomercial is complete, which is a big part of the battle. Next comes disseminating the spot. In my opinion, we are in for a very interesting fall and holiday season here if Zevotek begins airing the piece and driving consumers into their local Walgreen’s and online to see what all of the buzz is about. Only time will tell, but I’ll be watching closely here over the next few weeks.

In Closing:

Unfortunately for all of our stress levels but hopefully fortunately for our trading accounts, the slow summer months appear to be just about behind us. As news from our portfolio companies picks up, so will our coverage on the small-cap world. Until next time, I suggest delving a bit deeper into the business models of the companies mentioned above.

New York City began a new program two weeks ago called Summer Streets. The program closes down 7 miles of streets so that bicyclists, walkers and joggers could enjoy a traffic- and noise-free section of the city. The program began August 9^th, continued last weekend on the 16^th and will finish next weekend on the 23^rd. The streets are closed from 7:00 AM until 1:00 PM. Other activities besides running, walking and bicycling take place within the 7 mile stretch. Organized activities such as aikido, salsa dancing, tai-chi, rollerblading and hopscotch are just a few of the activities taken on during the summer Street program. The actual Summer Streets are from the Brooklyn Bridge to Central Park along Lafayette St, 4^th Ave, Park Ave and 72^nd St.

Mayor Michael Bloomberg is very excited about this new project: “We’re going to embark on a grand experiment that could dramatically alter the way we use and look at the streets of New York. Streets that are normally tied up with cars and trucks will be turned over to the public–so that we can experience this city as never before. If the program works, we’ll strongly consider doing it again; maybe we’ll try it in other parts of the city. If it doesn’t work, we won’t, but we can’t be afraid to find out.”

Many organizations are participating in the program; DOT will provide bike helmets to riders while supplies last, NY Runners will lead running groups at varying skill levels and Bike NY will hold classes for beginners young and old. Other vendors will rent or give test rides on bikes, and even bike repair will be available to those who bring their own bicycle down to the event. There will also be a main stage on 24^th Street which will house live music and other performances.

There are also three rest stops along the route which have schedules for the aforementioned activities such as aikido and salsa dancing between the hours of 8:30 AM and 12:30 PM.

Numerous small start-ups are bringing back the electric car in the wake of extremely high gas prices. These companies are gutting the combustible engine parts and incorporating complete electric motor systems, or changing gas-electric hybrids into plug-in hybrids. The businesses claim that the plug-ins can run for 40 miles on the batteries and get on average of 100 miles to the gallon.

The cost to convert is around $10,000.00. That is a pretty expensive price tag, but Felix Kramer, the founder of CalCars believes it is worth every penny. The current batteries cover the average daily commute for most Americans, but the range will increase as battery makers make advances in that field. Kramer also believes that car makers will assimilate this process into their realm, but until then individual mechanics and dealers around the country will perform the service.

Plug-In Supply is seeking venture funding and already has a backlog of 75 orders for their kits around the country and a few external countries such as Australia, Canada and Germany.

The mass market for plug-ins is not predicted to come out until 2012. Toyota’s plug-in has a limited quantity available so the conversions will still be viable. They might even be viable if electric cars are even pricier than a hybrid.

More expensive alternatives are out there as well. A company in San Dimas, CA will convert a Scion xB to run for 150 miles per charge and up to 95 miles per hour. The price for that kind of efficiency is $55,000.00.

Some companies are focusing on the big gas guzzlers like trucks and SUVs to convert to plug-ins. One such venture took place at the Illinois Institute of Technology under the charge of Eli Emadi. They gutted a Ford F-150 and replaced it with a nickel metal hydride batteries in a plug-in system. The miles per gallon went from 16 to 41.

There are many steps to take before electric plug-ins are common place. The life of the battery as well as the price must change. Longer rides at a lower cost are more appealing, as well as more feasible to the average American driver.

Quest Mineral and Mining Corp. (OTCBB: QMNM) gained nearly 15% Monday on news that its Pond Creek, KY coal mine has recently achieved full production status and also increased daily output expectations. Currently trading at $.0815, QMNM holds a great deal of upside potential for a number of reasons. Here are a few:

1. Quest is a coal producing company.

Gwenco, QMNM’s wholly-owned subsidiary currently leases more than 700 acres of coal mines believed to hold approximately 12,999,000 tons of coal. Furthermore, Gwenco is already extracting enough coal to require the installation of a larger conveyor system that will facilitate the company’s production of between 1,000 – 1,300 raw tons of coal per shift at Pond Creek.

2. Quest plans to monetize a portfolio of coal properties, not just one mine.

QMNM has publicly stated plans to bring a second mine – Cedar Grove, KY – online by the end of 2008. Cedar Grove is located in very close proximity to Pond Creek and is expected to produce roughly identical raw ton output upon achieving full production status; although initial engineering reports indicate that the coal located in Quest’s second mine is of higher quality than that of Pond Creek.

3. Low-Cost, High Potential Play on the Ongoing Coal Boom

As more established competitors including Arch Coal (NYSE: ACI) and Massey Energy (NYSE: MEE) continue to demand a premium from a stock price perspective, Quest represents a very compelling low cost opportunity to capitalize on the ongoing coal boom. Despite the obvious dangers of investing in companies currently in bankruptcy and trading in the penny range, the potential rewards are monumental.

4. QMNM Made a 4,000% Advance from 6/18 to 6/23

Quest recently advanced more than 4,000% in 3 days on total volume of 643,000,000 shares traded. QMNM closed at $.0016 on 6/18 and hit the high point of its recent run at $.075 on 6/23.

5. $8+ million contract in hand.

Quest has a $8M contract in hand with Logan & Kanawha Co., LLC., and recently noted that it had verbally accepted a 10% higher strike price per ton on coal delivered through December of 2008

What’s it gonna take to get the stock moving northwards?

Since $.075, QMNM’s trading behavior has been erratic at best. Despite tremendously high average daily trading volume for a penny stock trading in the sub $.10 range coupled with a number of stellar corporate announcements, the stock is parked below two cents. In my opinion, if Quest stays on track with recently stated production and rehab goals and quarterly financial reports become available, the stock will begin to receiving a more favorable valuation in comparison to its peers.

Just to give you an idea of what the future could hold for Quest if the company could indeed make good on plans to move out of Chapter 11 and continue bringing lucrative mining properties into production, here’s a look at two of its larger competitors in the Appalachian region

Massey Energy Co. (NYSE: MEE)

The Central Appalachian-based coal provider recently reported a stellar second quarter aside from a $245.3 million pre-tax charge related to ongoing litigation with Wheeling-Pittsburgh Steel Company. Some of the highlights include:

• Record coal revenues of $710.3 for a 38% year-over-year gain.
• EBITDA increased 65 percent to $199.0 million excluding ongoing litigation-related charges
• Avg. revenue per produced ton of coal increased 28% y-o-y to $65.78
• Average produced coal revenue per ton increased 28% to $65.78
• Q2 operating cash margin per ton increased 83% to $15.94
• 28% increase in avg. realized prices on coal shipped in Q2 of $65.78 per ton vs. $51.40 per ton in Q2 2007
• 1st half coal revenue of $1.25 billion and net loss of $51.4 million or $0.64 per share

Massey also accompanied its commentary on second quarter operating results with forward looking guidance into the remainder of ’09 and 2010. Important highlights include:

• Anticipated met coal output of between 13.0 to 14.0 million tons;
• Currently in possession of approximately 6 million tons of unsold or un-priced metallurgical quality coal for 2009; and
• 2009 cash costs anticipated in the $52.00 to $60.00 per ton range.

With close to 81 million shares outstanding and a P/E of 51.33, MEE closed 8/4/08 at $65.91. The stock has recently been upgraded by both Davenport and Standard & Poor’s and continues to attract investor interest as energy demand surges.

Arch Coal, Inc. (NYSE: ACI)

The St. Louis Missouri-based company operates 18 mines in 7 states and owns or controls approximately 2.9 billion tons of proven and probable recoverable coal reserves. With properties in states including Colorado, New Mexico, Kentucky, West Virginia, Illinois, Wyoming, and Utah; Arch saw second quarter profits double and now believes that 2008 will be a record year for the company. Here are some of the company’s second quarter highlights:

• Total sales of 34.4 million tons of coal during Q2 vs. 33.3 in Q2 ’07;
• Revenue increase of nearly 30% from $598.7 million in Q2 ’07 to $785.1 million;
• Net income of $113 million, or 78 cents per share vs. $37.6 million, or 26 cents per share;
• Operating margin increase from $3.51 to $20.16;
• Operating margin per ton averaged $4.21 vs. $1.75;
• Average sale per ton of $21.04, vs. $16.42 during Q2 ‘07 and $18.49 in Q1 ’08;
• First half earnings of $194.1M, or $1.34 per share, $66.3M, or 46 cents per share during the 1st half of 2007; and
• First half revenues of $1.48B vs. $1.17B during the 1st half of 2007.

With just over 144 million shares outstanding and a P/E of 23.17, ACI closed 8/4/08 at a price of $48.51. The company currently provides the fuel for about 6 percent of the electricity generated in the United States and hopes to see that number increase over the next two years.

Bullish Outlook on Both Sides of the Fence

With both corporate executives and independent industry analysts alike bullish on the company’s future potential, Arch Coal appears to be extremely well positioned to capitalize on the continued growth of the coal market.

In a recent investor conference call, Arch chairman and CEO Steven Leer, was quoted as saying “We expect 2008 to be a record year for Arch”; and “Our tighter and stronger guidance is indicative of our confidence in the coal market fundamentals and in our ability to capitalize on these strong market trends”. Within the analyst community, Calyon Securities’ Gordon Howald recently reiterated his “buy” rating and $100 price target on ACI.