Truly 'Alternative' Energy Stocks That Could Shine

The stock is at $1.40. There are no earnings as yet, which of course makes it risky. But Robinson says the company has the capital it needs to get the first plant up and running. "It's a very small company -- nobody knows about it," he says. The market value is barely $60 million.

Away from geothermal energy, Robinson has also got big bets on three other alternative energy companies. FuelTech (FTEK Quote) has a technology that helps coal power stations save money and emissions by cutting down on the "slag" or residue buildup in the furnaces.

Sound dull? Right now that residue is a big problem. Power stations have to shut down every so often and dynamite out this residue. That involves heavy costs, including downtime.

FuelTech uses technology and chemicals, including additives to the coal, to avoid the problem. The company already has contracts with 30 power stations, and it's growing fast. "They have about 2.5% of the market and no competition," says Robinson. The stock is currently $25.70. By some estimates, that looks as high as 60 times forecast 2007 earnings -- though, as with WFI, Winslow believes earnings will be a lot better than that.

Then there's Nova Biosource Fuel (NVBF Quote), based in Houston, which can convert fat renderings into biodiesel. Robinson's not kidding: He says the company could turn the leftover fats from a McDonald's fryer into pretty clean fuel, saving costs, waste and emissions.