WorldWater & Power Corp. (WWAT.OB)

Dear Bottarelli Research Member,

As the markets continue to move higher, be prepared to “keep some powder dry” for picking up great small-cap deals on any market pullbacks. But until any sizable pullback happens, we’ll continue to ride the upside momentum — and in particular enjoy the extended rally in our three so-called “energy trusts.”

In particular, Canetic Resources Trust (CNE – NYSE), Advantage Energy Income Fund (AAV – NYSE) and Provident Energy Trust (PVX – NYSE) are cash generators that are all doing well for us, and continue to be outstanding longer-term holds.

Not to be outdone, our newest pick on Input/Output (IO – NYSE) just set to a fresh 52-week high and Puda Coal (PUDC.OB) is looking to break its recent high at $2.49. Also don’t forget to maintain your $1.50 buy order on Nevtah Capital Management (NTAH.PK) which has yet to trigger from our alert on Friday, May 18^th.

Another important point I’d like to hammer home is the fact that I’m recommending many of these small-cap positions BEFORE the rest of the investing community recognizes their true upside potential. This is exactly how my inner circle has made their fortunes — and this is the same exact roadmap that I’m implementing here in Bottarelli Research Small Cap. Buying companies like Minera Andes (MNEAF.OB), Metalline Mining (MMG – AMEX), Idaho General Mines (GMO – AMEX), Polymet Mining (PLM – AMEX), Nevtah Capital Management (NTAH.PK) and Big Cat Energy Corporation (BCTE.OB) way before any news hits about a major discovery, buy-out, or contract is how we hit the truly magnificent winners.

I’ve picked each of these companies based not only on their technical chart formations — but also on future upside trigger events such as proven reserves in the ground, drill results that show expanding reserves, or plans to get a mine and/or production underway. The combination of each upside catalyst (both technical and news-driven) makes me extremely bullish on each of these small-cap positions — and I’d like everyone to maintain their positions.

But let’s now dive into this week’s little gem, because this is one that I know is going to light up your life. It’s a stock that I’m very familiar with, meaning that I’ve done extremely well investing in this company in the past. I believe it is now setting up to make yet another substantial move — one that could push it higher than ever before. The name of the company is WorldWater & Power (WWAT.OB) and I’d like to recommend it at or under $1.00 per share.

WWAT is a small-cap solar power generation company, and we all know how hot the solar sector has become. WWAT’s most promising market niche involves producing large solar panels using 95% less silicon than conventional flat-plate solar modules. This is a huge step forward for them. Plus, their patented solar technology also provides solutions for a broad spectrum of the world’s electricity and water supply problems — which makes them a good investment right as we head into the long and hot summer months.

Now is the time to get positioned in this gem, because I think the profits will be strong going into the later part of summer and beyond.

This is one of those “must-own” companies quickly coming into their own, and it’s time for us to ride their enormous potential alongside them as they take the next step into the water and solar industry. (As a side note, my own inner circle believes solar power will be one of the biggest booms any of us have ever witnessed, so it’s time to strap in alongside WWAT and ride the coming solar energy wave that will inevitably hit the markets in a big, big way.)

With that said, I’m going to turn it over to Bryan for more details — so enjoy your weekend and get ready for next week’s small-cap pick. If my research checks out, you could have another huge winner in the area of next-wave energy transition. You can look forward to more exciting developments next week.

Sincerely,

Currently Trading for $0.91 Per Share, the 12-Month Goal for WorldWater & Power (WWAT.OB) is a $5.00 Price and a NASDAQ Listing

WorldWater & Power Corp. (WWAT.OB) is a solar engineering company operating both in the United States and internationally. Lead by the same group of Princeton University scientists since 1984, the company has quietly installed the world’s largest solar irrigation system, the largest community college photovoltaic system, the largest water treatment photovoltaic system, and the world’s largest agricultural photovoltaic electric system — all under the radar of Wall Street.

Photovoltaics (PV for short) is a solar power technology that uses solar cells or solar photovoltaic arrays to convert light from the sun into electricity. Just look at the image below to see the enormous potential of PV solar technology.

Assuming a conversion efficiency of 8%, solar power systems installed in the areas marked with black dots could provide more than the world’s current total primary energy demand. Yes, you read that correctly.

Solar cells could produce enough energy to handle the world’s current consumption of heat, electricity, fossil fuels, etc. But unlike fossil fuels, solar power does not lead to any harmful emissions. That’s why financial incentives (like preferential feed-in tariffs for solar-generated electricity) have sparked a new wave of solar PV installations in Germany, Japan, and the United States.

Combine these incentives with an energy payback of 1.5 or 2 years (with expectations of a 12-month payback within a few years) and the case for explosive PV growth is quite clear.

In fact, what you have is an industry in the nexus of powerful mega-trends that will sustain WWAT’s growth for a number of years. Whether it’s the billions in PV incentives, restrictions on carbon emission, or even the continuous cost decline of PV (which in turn shortens payback times), the solar market is something that every investor should have exposure to — and WWAT is a wonderful way to own a cheap and undiscovered solar company on the rise.

Looking specifically at WorldWater & Power’s product line, they offer water and power solutions using three solar electric technologies:

• AquaMax: Asolar electric system which operates pumps and motors up to 1,000 horse power for irrigation, refrigeration, cooling, and water utilities.
• AquaDrive: A controller that converts solar DC current to AC, then supplies the AC power to a motor or pump from either the solar array or the grid (or simultaneously from both sources).
• MobileMaxPure: A trailer mounted solar powered system designed to pump and purify water for both drinking and food preparation.

WWAT also offers photovoltaic net-metering systems which are designed to zero-out electrical usage charges for residential, commercial, industrial, and governmental applications. But in the U.S. Market, WWAT’s AquaMax system is their signature product and — thanks to strong incentives for solar energy — states like California and New Jersey are driving demand. And this demand will only grow larger.

Here is why WWAT offers such promise: Water utilities are the single largest users of electricity in California. Agriculture alone accounts for 7% of the trillion dollar California economy, and 90% of all electrical usage for California agriculture occurs via moving water. When doing my due diligence, I wasn’t aware that moving water is such a tremendous energy consumer — and that helped me to truly understand WWAT’s potential.

You see, WorldWater & Power is the only company with the technology capable of providing continuous power during peak periods, blackouts, or brownouts. In fact, their solar technology can drive pumps and existing AC motors up to 600 horsepower even if other energy sources are down. And that’s just the tip of the iceberg.

Looking specifically at AquaMax, this proprietary technology operates a completely automatic solar irrigation system. It operates unattended, turning on and off automatically every day for irrigating fields or pumping water for livestock. It also offers a reliable and hassle-free water flow operation without the need for routine maintenance, no noise, and no pollution.

Not only that, but AquaMax can guarantee that you will not buy power during peak periods. That way, you’re not paying a premium for power. The idea (which is quickly catching on) is that the savings from electricity bills will pay off the cost of the solar system. After that, any electricity from the solar technology is free. When you add in the additional incentives from rebates, tax credits and depreciation allowances, it’s clear that implementing WWAT’s AquaMax solar pumps is a no-brainer compared to the rising cost of electricity and fuel.

Now remember, WWAT’s stock valuation is derived mostly from smaller U.S. projects in California and New Jersey. Just imagine if the major agricultural states in the Midwest (Iowa, Indiana, Illinois, Ohio, etc.) follow California’s lead and implement WWAT’s AquaMax technology in a large scale. Without question, the potential here is truly enormous for early investors like you and me. And don’t look now — but the word is quickly spreading!

Case in point, the state of California was so impressed with WWAT’s work (which includes the Fresno airport solar complex, the largest solar-powered agricultural system in the world, and the only self-sustaining water utility) that Governor Arnold Schwarzenegger invited WorldWater Chairman and CEO Quentin Kelly to travel with him to Vancouver to participate in the California-Canada Conference on Clean Technologies.

In response to this invitation, Mr. Kelly said “The Governor has been a leader in promoting clean, renewable energy alternatives, and our work in California has demonstrated the impact that solar applications can have in reducing power consumption, protecting the environment, and addressing agricultural requirements. We look forward to bringing our same technology to Canada.”

And here’s the thing: If WWAT can capitalize on the momentum brought about by their success in California, I feel they’ll continue to expand their client list and their stock price will continue to move higher.

In fact, as I reviewed WWAT’s annual shareholder meeting presentation (dated May 24, 2007), it was easy to see the enormous potential of this small company. Nevermind that they’re involved in a $10.6 billion solar market that’s growing by 20% per year. Right now WWAT has an unprecedented business pipeline that’s over $200 million and growing by the day. Plus, their revenue growth is expected to double year-over-year, and their stock price has increased 86.93% over the last 52-weeks. The time to buy is now!

What really struck me was that WWAT has plans to migrate to the NASDAQ — and soon. But in order to meet the NASDAQ listing requirements, their stock price needs to get beyond $5.00 per share. That’s a 450% increase from current levels — and all indications are that WWAT is determined to meet this share price goal sooner rather than later.

As WWAT continues to expand their pipeline by installing solar power systems for agriculture, educational institutions, water utilities and municipalities, I truly think we have a big-time winner on our hands. As our newest small-cap play, let’s buy shares of WorldWater & Power Corp. (WWAT.OB) under $1.00. Here’s the play…

PLAY: Buy shares of WorldWater & Power Corp. (WWAT.OB) at or under $1.00, good for the week.

*ADMINISTRATIVE NOTE: I’m happy to report that our new hosting company is fantastic — and our trading alerts are being delivered faster than ever before via e-mail. At the same time, our newly-implemented RSS technology is also proving to be quite effective — as our trading alerts appear instantly in your RSS reader the moment they are published. If you have not yet started to use the RSS feed, it’s free for all active members, so be sure to take a moment this weekend and follow our helpful setup guide at the link below:

http://www.bottarelliresearch.com/RSS.asp#RSSSetupGuide

If you use RSS, we strongly recommend you configure your RSS reader to poll the Bottarelli Research RSS feed every 60 seconds for best performance. To do this, set the refresh interval or update period to 1 minute (or 60 seconds). If you had been using RSS and noticed that the alerts were hitting your e-mail inbox before your RSS reader picked them up, then changing this setting will make a big difference.

* ANOTHER IMPORTANT CHANGE TO NOTE: To further improve the delivery of our trading alerts, we will begin sending out our trading alerts from a new e-mail address. Starting in 2 weeks, we still stop sending alerts from bryan@bottarelliresearch.com and begin sending alerts from alert@bottarelliresearch.com. To ensure that you continue to receive all Bottarelli Research e-mails to your inbox (and not your spam, junk, or bulk mail folder), please add alert@bottarelliresearch.com to your e-mail address book and/or safe senders list to white-list this new e-mail address. We also recommend you white-list bryan@bottarelliresearch.com if you haven’t already done so. I’m alerting you of this now so you have plenty of time to prepare for this minor change ahead of time.

Sincerely,