To OTC Journal Members: 
 

Huge, Huge, Huge Problem

Huge problem in the US: Wastewater- polluted waste water flowing into our water supply and the ocean. I'm not talking about water that flows into sewage treatment plants. I'm talking about storm water flowing into sewer grates and then directly into a river or ocean. 

I'm talking about drains at gas stations. How about water flowing into storm grates at airports and marinas?

This is Senator Joe Lieberman. Democrat from Connecticut, turned "Independent Democrat", and Gore's running mate against Pres GW for his second term. 

Politics aside, a powerful man in the Senate. Lieberman rounded up a whopping $400,000 (the interest on our national debt about every nano second) to fund a waste water pilot project in Norwalk, Connecticut.

271 filtration units were placed around Norwalk Ct at waste water locations that would normally flow directly into Long Island Sound. They were simply sheet metal cubes with a special filter inside. This unique filter is capable of removing everything from solid waste to oil and bacteria while allowing the water to flow through very rapidly.

When the pilot test was over, Lieberman said it felt like it was being there when the "Wright Brothers Flew The First Plane".

As a result of this pilot test, 11 other major cities started their own pilot projects using this same technology, and representatives from Australia and the UK came sniffing around for a look.
 
 

Enter ABTech Industries (OTC BB: ABHD): The Wright Brothers of Waste Water

It was Liebeman's metaphor, not mine, but I'll use it. Like watching the Wright Brothers first flight at Kitty Hawk. I think he really meant to say this technology represents a major inexpensive solution to a very pervasive problem.

ABHD holds 17 patents surrounding their proprietary Polymer filtration products. I'll put it in English for you. These guys have a pretty fancy sponge filter. Waste Water flows through it quite rapidly. What doesn't come out the other end is pollutants, contaminants, oils, bacteria, and solid waste.

Despite being relatively unknown, their filtration products and systems are now being used in 36 states. 

The company is in the business of placing these filters anywhere waste water flows. It could be the biggest storm grate at Kennedy Airport, or the drain at your curb where water flows when you wash your car.

This technology is attracting the interest of all sorts of users from municipalities to airports to travel centers (huge gas stations) to environmentalists for two main reasons: 1. It works, and 2. It's cheap.

I find it particularly interesting that the technology is capable of filtering out bacteria. Nobody wants oil in our water, let alone plastic bottles, used needles, and all the other horrible stuff you read about.

Bacteria is another story. This stuff is not only lethal, but it's microscopic as well. It's tough to get out of water in lakes, rivers, and beaches, and it makes people sick. Contaminated waste water flowing into recreational areas is a big problem, and this company appears to have a solution.
 

What It Looks Like

Long Beach, California has 383 miles of active storm water carriers. There's a deep water harbor, 2,000 oil wells (bet you didn't know that), 11 miles of beach, two city owned marinas, and 468 acres of navigable waterways. 

You're looking at the ABHD waste water traps found somewhere in the Long Beach system. 

Long Beach has deployed 1318 catch basin filters in 328 catch basins in phase I. In phase II the city added an additional 529 inserts in 175 catch basins- there's 1904 inserts in 503 catch basins.

This only represents 15% coverage of the city's system.

The results- ABHD's filters significantly improved water quality- ABHD's filters removed an estimated 90,000 lbs of contaminants- of the 90,000 lbs, 25,000 were oil contaminants.

There's a much greater wealth of information on this company's web site. There are 8 video clips from major news outlets who have covered their products. You can click on a link and listen to Lieberman gush if you like. You can watch coverage from Fox, CNN, ABC, and CBS local news stations.

Go to: http://www.abtechindustries.com/
 

Capturing Investor Imagination

This story, and clearly this stock has now captured the imagination of investors. Here's why I like it. Consider how immensely profitable this company could be down the road. 

As more pilot projects go up, and more systems become part of the waste water landscape, consider how many filter sponges will have to be ordered. It's the classic "razor/razor blade" model. The money for Gillette was never in the razor- it was always in the replaceable razor blade. Give them the razor, and they will buy razor blades years.

This model is identical. Put in the filter system, and they will have to buy filter sponges for years.

ABHD has been under accumulation this entire year as investors are taking note of this relatively undiscovered gem. The stock is solidly above both it's 50 day and 200 day moving averages (blue line and green tick). That's drop dead bullish.

Since late January, volume has been materializing. This stock trades 100,000 shares on a bad day, with drafts up to 250,000 shares. The stock has been on a slow but steady incline as more investors are learning about their achievements.

There was a nice little pullback today to provide a favorable entry level. 

I believe this stock is probably going to $2. That would be about 54% on your invested capital. It will probably find its way there over the next month or two.

Here's my short term suggestion- accumulate up to $1.40. SSL (suggested stop loss): $1.10. Catalytic news should keep this stock moving in the right direction over the next several months. The gains are incremental, so it's not a wild trader, and not as risky day to day as some. It's just heading north a little at a time 2 out of every 3 trading days.

A major news driven break out could materialize any day, so best to be on board.

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