Fuel Tech: Reducing emissions
Pollution control firm Fuel Tech (Nasdaq:FTEK), whose technology reduces NOx emissions, is a recent feature from small-cap expert Jim Oberweis, Jr. in The Oberweis Report.
"The company provides a suite of advanced technologies for boiler optimization, efficiency improvement and air pollution reduction and control solutions to utility and industrial customers worldwide.
"Fuel Tech markets its nitrogen oxide (NOx) reduction and FUEL CHEM processes. The company’s NOx reduction technology reduces NOx emissions in flue gas from boilers, incinerators, furnaces and other stationary combustion sources.
"The U.S. air pollution control market is the primary driver in Fuel Tech’s NOx reduction technology segment. This market is dependent on air pollution regulations and their continued enforcement. Fuel Tech also sells NOx control systems outside the U.S., specifically in Europe and in China.
"In the company’s latest reported third quarter, sales increased approximately 55% to $23.7 million from $15.3 million in the third quarter of last year. Fuel Tech, Inc. reported earnings per share of $.09 in the latest reported third quarter versus $.04 in the same quarter of last year.
"The company experienced an unexpected hiccup in July 2008, when the D.C. Circuit Court of Appeals struck down the Clean Air Interstate Rule (CAIR), a significant legislative catalyst that led utilities to buy pollution control equipment.
"Business came to a screeching halt. However, on December 23rd, 2008, the U.S. Court of Appeals for D.C. Circuit Court reversed the decision, temporarily reinstating CAIR but also asking the EPA to correct the rules flaws.
"Significant regulatory uncertainty remains, but it sounds like a revised CAIR may be even more stringent, not less. Clients of Oberweis Asset Management own approximately 203,000 shares. These shares may be appropriate for risk oriented investors."
