Tag - FTEK

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 . . .

Small-cap stocks jumped higher on the opening, lifted by news of a large fiscal stimulus plan out of China, and by a surge in commodity-related shares. Today’s small-cap gainers are GeoMet (Nasdaq:GMET), Logility, Inc. (Nasdaq:LGTY) and ETEL (Nasdaq:ETEL).

Other Market Watch highlights today included:

•    Financial shares got a lift from a G20 statement over the weekend saying that a coordinated action was needed to fight the global financial crisis.  
•    At 9:54 a.m. ET, the Russell 2000 was up 5.81, or 1.15% at 511.60
•    Small-cap stocks jumped higher on the opening, lifted by news of a large fiscal stimulus plan out of China, and by a surge in commodity-related shares.
•    Overnight, China shares were up 7.4%, Japan’s Nikkei climbed 5.8%, Hong Kong was up 3.5%, India rallied 5.7%, Australia was up 1.3% and European shares were up about 2% heading toward the U.S. open.  
•    Crude oil prices were up more than $4 a barrel, while copper prices climbed 8% in Asian trading.

Small Cap Gainers:

• GeoMet up 19% ahead of its Q3 earnings release and conference call scheduled for today. See (Nasdaq:GMET).  
• Logility, Inc. up 18% on light volume. See (Nasdaq:LGTY).
• EGS Acquisition Co. commences tender offer to acquire all issued and outstanding common shares and ADSs of eTelecare Global Solutions. Shares of ETEL pop 16%. See (Nasdaq:ETEL).  
• Smith & Wesson up over 16% on no fresh news, lower-than-average volume. See (Nasdaq:SWHC).  


Small Cap Losers:

• GSK, XenoPort to withdraw and resubmit new drug application requesting Solzira approval for restless legs syndrome. XNPT shares dive 17% in pre-market. See (Nasdaq:XNPT).  
• Fuel Tech Inc. reports Q3 results, lowers FY 2008 outlook. Shares drop 9% in pre-market. See (Nasdaq:FTEK).  
• Circuit City files For Chapter 11; shares lose more than half their value, shares plummet 64% in pre-market. See (NYSE:CC).  

China Sunergy Co Ltd. (Nasdaq:CSUN), DrdGold (Nasdaq:DROOY) and Ascent Solar Technologies Inc. (Nasdaq:ASTI) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion. 

Also included among the results: Zumiez Inc. (Nasdaq:ZUMZ), Novatel Wireless Inc. (Nasdaq:NVTL), Micromet Inc. (Nasdaq:MITI), Royale Energy Inc. (Nasdaq:ROYL), TBS International Ltd. (Nasdaq:TBSI) and Fuel Tech Inc. (Nasdaq:FTEK).           

Here are the most actively traded companies among small caps:   

Small-cap stocks mounted an impressive rally Thursday, eye-catching not for the severity of the climb, but for the ability to shrug off bearish economic data. Fresh worries about inflation and the jobs picture were fanned this morning, but those issues had a surprisingly short shelf life as investor appetite for riskier investments and the unwinding of long commodity trades continues to bolster equity markets. The Russell 2000 (NYSE:IWM) closed up 6.69, or 0.89%, at 754.38. The Russell is now down just 1.5% for 2008, while the Dow is off 12.3% and the S&P 500 down 11.9%. Very quietly, the Russell 2000 today generated the second highest daily close of the year, which puts all the shorts on a tight equity leash.

Although a big jump in consumer price inflation pulled down the stock market on the opening today, investors quickly set aside the data as “dated,” reasoning that recent sharp declines in the price of energy have not filtered into the official inflation numbers yet. Indeed, on a near-term basis, crude oil prices have collapsed some 21% from the summer peak and were down about $1 dollar a barrel today to $115. However, it was a volatile session for crude oil, as the market did bounce off the intraday low of $112.59 as traders are unsure if a cease-fire order between Russia and Georgia will hold up.

Elsewhere on the commodities front, soft markets were taking a hit today, with cotton down 2.3%, cocoa off 1.5% and sugar down 2.3%. Clearly, commodities are unwinding off a major bullish run and some of that money (most likely flush from big profits) is more than willing to take a stab at the stock market — especially within the small-cap arena. Playing a big role in the unraveling of commodity market inflation has been a dramatic strengthening in the U.S. dollar, which makes many physical goods sold on the world that are priced in dollars more expensive. Look at it this way, crude oil priced in dollar terms is still not extremely cheaper than it was at the . . .

Columbia Bancorp (Nasdaq:CBBO), Optium Corp (Nasdaq:OPTM) and Benihana Inc(Nasdaq:BNHNA) are among the biggest percentage losers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Adept Technology Inc (Nasdaq:ADEP), Fuel Tech Inc (Nasdaq:FTEK), Cardica Inc (Nasdaq:CRDC), Pamrapo Bancorp (Nasdaq:PBCI), Virtual Radiologic Corp (Nasdaq:VRAD) and Cathay General Bancorp (Nasdaq:CATY).

Here are the biggest percentage losers among small caps:

Vanda Pharmaceuticals Inc (Nasdaq:VNDA), Eresearchtechnology Inc (Nasdaq:ERES) and Fuel Tech Inc (Nasdaq:FTEK) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $750 million.

Canadian Solar Inc (Nasdaq:CSIQ), IPG Photonics Corp (Nasdaq:IPGP) and China Natural Resources Inc (Nasdaq:CHNR) are also among the most actively traded companies.

Here are the most actively traded companies among small caps:

The Russell 2000 (NYSE: IWM) futures have moved up and the small-cap index will open in positive territory.

Wall Street appears set for a bullish opening following a day of steep losses. There is little on the economic docket today, except for news about the U.S. trade deficit in January.

The U.S. Commerce Department reported this morning that the trade deficit increased 0.6% to $58.20 billion in January from December’s downwardly revised $57.86 billion. Economists were expecting the deficit to widen to $59 billion.

Exports increased 1.6%, while imports added 1.3%.

Small-cap stocks extended the freefall Monday, sinking to the lowest daily close since Oct. 27, 2005. By the time the bell put a merciful end to things, the Russell 2000 fell 16.14 points, or 2.45%, to 643.97. Interestingly, the late action in small caps was far more severe on the downside than what took place in large-cap issues. In addition, the index snapped critical chart support from January at 650. Persistent price action below that point would open the door for another leg down in the bear market.

The international trade data this morning could spark some pre-opening volatility in stocks, but that report tends to be more of a market mover in the foreign exchange domain. Look for resistance Tuesday for the Russell at 650, then at 654.50 and 660.

Meanwhile, support is at tentatively at 639 and 634, but since we are now at long-term lows, the next big chart points aren’t until 625 and 614.

The Russell 2000 (NYSE: IWM) futures are higher and the small-cap index will likely open with an increase.

Small-cap stocks are poised for a modestly bullish opening on news that U.S. productivity for the fourth-quarter of 2007 was revised up. The U.S. Commerce Department reported this morning that business productivity added 1.9% at an annualized rate, above the initial estimate of 1.8%. Economists were not expecting an upward revision.

Small-cap stocks embarked on a similar journey Tuesday to what took place during Monday’s activity – a morning slump erased by a solid afternoon recovery. In the end, the Russell 2000 closed down 3.24, or 0.47% at 680.98. Despite the lower close, it had to feel like a victory for jittery bulls who endured a morning slide down to 670.59. Looking ahead to today’s action, support is pegged just below the market at 680, then at 675 and 670. Meanwhile resistance comes in at 693 and 701.

Wednesday is a busy session for event risk, with the ISM Non-Manufacturing Survey and Factory Orders at 10:00 a.m. ET. In the afternoon, the Beige Book report at 2:00 p.m. ET also could stir up some market volatility.

"The air in China is so polluted in the country’s largest cities that I don’ t even bother to book hotel rooms above the 10th floor anymore because you can’t see anything," says global investing expert Tony Sagami, editor of The Asia Stock Alert.

According to the European Space Agency’s indisputable satellite images, China has the planet’s worst levels of air pollution. The World Bank, Sagami says, has said China is home to 16 of the planet’s 20 most air-polluted cities.

"One culprit is coal-powered plants, which provide around 80% of China’s electricity," Sagami says. And one company that can help with this pollution, the advisor says, is Fuel Tech Inc. (Nasdaq: FTEK), a small-cap company with a market capitalization of $439 million.

"Coal-powered plants translate into some very dirty air — and a very big opportunity for someone who can help clean up China’s extremely polluted air,” he says. “Further, governments around the world are focusing on reducing greenhouse gases.” That, he suggests, is where Fuel Tech comes in.

Fuel Tech provides boiler optimization, air pollution reduction and cleaning solutions. In simple terms, he says, Fuel Tech helps coal-powered utilities reduce the amount of pollution they throw into the air and operate more efficiently.

The Clean Skies Act of 2003, he says, requires that power utilities reduce their carbon dioxide emissions by 67%, mercury by 37% and nitrogen oxide by 25% by 2018. And, he says, there are 1,500 coal-fired power plants in the United States and the Edison Electric Institute estimates that the government will spend $40 billion during the next decade to clean up the air.

Marketocracy is a unique website developed by Ken Kam, former portfolio manager and co-founder of Firsthand Funds, that allows individual investors to manage "virtual" $1 million portfolios. Designed with the same restrictions as a “real” mutual fund, the system allows investors to test their skills against other individual investors and compare their performance against their peers and the professional money management world.

Today, Marketocracy has over 55,000 people managing 65,000 model portfolios.

“We have followed over 10,000 stock positions at any one time and more than four million trades,” Kam says. By comparing the long- and short-term performance of each stock picker and their buys and sells, Kam attempts to identify what he believes are “truly the best investors.”

This lengthy introduction to his strategy is important, as it is this analysis of all the trades within these model portfolios that forms the basis for Kam’s specific stock selections. One example is his Stock Alerts newsletter. He begins by analyzing each of the stock purchases made by those individuals in his system whose performance ranking is in the top 25% of all monitored portfolios.

He then compares these buys — on a stock-by-stock basis — with the buys and sells made by the 75% of investors whose portfolios have underperformed. The third step is to find those stocks that are being bought by the “best” while simultaneously being sold by the “rest.”

From the stocks that pass this step, Kam selects his “buy” recommendations, such as these three small-cap stocks, based on this “best versus the rest” approach.

The Russell 2000 (NYSE: IWM) is posting losses on news that U.S. consumer prices rose more than expected in November.
 
At 10:47 a.m. ET, the small-cap index had dropped 4.08 points, or 0.53%, to 765.38. The Dow Jones Industrial Average (INDU) was off 50.56 points, or 0.37%, to 13,467.40.

High energy costs led to a jump in inflation in November, according to a report by the U.S. Labor Department before the start of trading.

The consumer price index increased 0.8% in November, above economists’ projected rise of 0.6%. That’s the biggest increase in over two years. Prices increased across the board, with energy leading the way with a 5.7% climb.

Consumer prices added 0.3% in October. Prices are up 4.3% from November 2006.

The core consumer price index, which factors out the cost of food and energy, gained 0.3%. The forecast called for an increase of 0.2%.

Core prices are up 2.3% from November 2006, while the U.S. Federal Reserve has said that it prefers core inflation to stay in the 1% to 2% range.

Shares of Fuel Tech, Inc. (Nasdaq: FTEK) are sagging in pre-market trading after the company recorded a disappointing third quarter and lowered its revenue guidance.

For the three months ended Sept. 30, the Batavia, Ill.-based company posted net income of $0.9 million, or $0.04 per diluted share, two cents below the $0.06 per share eleven analysts polled by Thomson Financial were on average forecasting. For the third quarter of 2006, the small cap earned net income of $2.1 million, or $0.09 per diluted share.

Revenues were $15.2 million; below the $19.06 million ten analysts polled by Thomson Financial were on average expecting. The current quarter’s revenues were down 24% over the $20.17 million earned in the same quarter last year.

Fuel Tech said effects of delayed orders were evident in the company’s results. The company countered its results by stating that an increase in third-quarter contract announcements, combined with significant new business will “bode well for financial performance in future periods.”

As a result of longer-than-expected delays in signing new APC orders and in implementing recently signed FUEL CHEM orders, Fuel Tech is adjusting revenue guidance for the full year of 2007 to a range of $76 million to $79 million, eleven analysts polled by Thomson Financial were expecting revenues of $79.13 million for the full year.

Fuel Tech provides services for the optimization of combustion systems in utility and industrial applications globally.

Shares of Fuel Tech slid (FTEK) 6.6%, or $1.90, to $26.90 in pre-market trading. Shares of Fuel Tech have been trading in the range of $18.80 to $38.20 for the past 52 weeks.

Momenta Pharmaceuticals, Inc. (Nasdaq: MNTA), Jones Soda Co. (Nasdaq: JSDA) and Xinhua Finance Media Ltd. (Nasdaq: XFML) are among the most actively traded companies in Tuesday pre-market trading among those with market capitalizations under $750 million:

A rollercoaster ride of trading today ended with the Russell 2000 (NYSE: IWM) gaining ground while the Dow fell after news of a temporary rise in the price of oil. The small-cap index added 1.54 points, or 0.19%, to 824.89. The Dow Jones Industrial Average (INDU) shed 20.40 points, or 0.15%, to 13,892.54.

On a year-to-date basis, the Russell 2000 has increased 4.76%, while the Dow has added 9.11%.

Stocks began on a bullish note following news of better-than-expected third-quarter earnings from tech sector heavyweights Intel Corp. (Nasdaq: INTC) and United Technologies Corp. (NYSE: UTX), but quickly shed those gains halfway through the trading session as the price of oil briefly rose to an intraday high above $88 a barrel.

Investors got jittery around noon ET, after the Turkish parliament overwhelmingly approved a military attack into northern Iraq in order to fight Kurdish rebels, causing the price of oil to clear $88 a barrel before moderating down to $87.40. A cross-border spat could disrupt Iraq’s oil supplies.

Nevertheless, small caps managed to sneak into positive territory just before the close, while the Dow languished in the red.

Meanwhile, U.S. housing starts fell to the lowest annualized pace in 14 years in September. The U.S. Census Bureau announced today that housing starts fell to 1.191 million, missing economists’ projections of 1.285 million. The level in August was an upwardly revised 1.327 million of privately owned housing units.

The stagnation in the housing sector seems to have no end in sight, as building permits, an indicator of future construction plans, also fell.

China Techfaith Wireless Comm. Tech. Ltd. (Nasdaq: CNTF), Sequenom, Inc. (Nasdaq: SQNM) and Alto Palermo S.A. (Nasdaq: APSA) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage gainers:

The Russell 2000 (NYSE: IWM) has erased its morning gains after news of a fresh spike in the price of oil. At 1:32 p.m. ET, the small-cap index was down 3.53 points, or 0.43%, to 819.82. The Dow Jones Industrial Average (INDU) had shed 74.14 points, or 0.53%, to 13,838.80.

The price of oil continues to set record highs, up $0.54 to $88.15 a barrel on news that the Turkish parliament overwhelmingly approved a military attack into northern Iraq in order to fight Kurdish rebels.

Military conflict could disrupt supplies from Iraq, the world’s third largest exporter.

Stocks started falling soon after 12 p.m. ET, the early gains made after major tech players reported better-than-expected earnings quickly disappearing.

Meanwhile, U.S. President George Bush said today that homeowners need help in order to avoid foreclosures, but spoke out against a bailout of lenders whose loose lending practices contributed to the current housing recession.

Speaking of the housing recession, before the opening the U.S. Census Bureau announced that housing starts for the month of September fell to an annualized pace of 1.191 million, the lowest in 14 years. Economists were expecting a rate of 1.285 million units following August’s upwardly revised level of 1.327 million privately owned housing units.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are higher this morning as news of strong earnings overshadows unimpressive economic data.

At 10:42 a.m. ET, the small-cap index had added 4.32 points, or 0.52%, to 827.67. The Dow Jones Industrial Average (INDU) was up 24.31 points, or 0.17%, to 13,937.25.

The first bullish earnings news came out after the close on Tuesday when search engine Yahoo! Inc. (Nasdaq: YHOO) reported third-quarter profit that outpaced Wall Street’s projections. The Sunnyvale, Calif.-based company said that net income slipped to $151.3 million, or $0.11 per share, compared with $158.5 million, or $0.11 per share a year earlier. However, analysts were forecasting earnings of $0.08 per share.

The trend of tech sector heavyweights beating earnings projections continued today with Intel Corp. (Nasdaq: INTC) and United Technologies Corp. (NYSE: UTX) also announcing better-than-expected quarterly financials.

Futures were up and small and big caps were poised for even bigger gains when news that the U.S. housing sector continues to agonize pulled the bulls back.

The U.S. Census Bureau reported before the opening that housing starts for the month of September fell to their lowest annualized pace in 14 years.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are sliding into negative territory on news of a decline in Citigroup’s earnings.

At 10:13 a.m. ET, the small-cap index had lost 5.20 points, or 0.62%, to 835.97. The Dow Jones Industrial Average (INDU) had shed 47.48 points, or 0.34%, to 14,045.60.

With no major economic news coming out today, investors are focusing on mergers, acquisitions and corporate earnings. Stocks began the day in the green but quickly surrendered those gains.

Dominating the headlines is news that Citigroup Inc. (NYSE: C) suffered a 57% drop in its third-quarter profit. The largest U.S. bank reported before that opening that its net income was $2.38 billion, or $0.47 per share, compared with $5.51 billion, or $1.10 a share, during the same quarter a year earlier. However, the quarterly results were above analysts’ forecast of earnings of $0.44 per share, according to a poll by Thomson Financial.

The New York-based financial giant blamed losses from subprime and leveraged loans, fixed-income trading and its U.S. consumer business for the decline in earnings.

In other business news, industrial and consumer products manufacturer Danaher Corp. (NYSE: DHR) announced that it will buy measurement equipment maker Tektronix Inc. (NYSE: TEK) for $2.85 billion.

The Russell 2000 (NYSE: IWM) futures are pointing up and the small-cap index will likely open in positive territory.

With no major economic news coming out today, investors will focus on mergers, acquisitions and corporate earnings.

Grabbing the headlines this morning is news that Citigroup Inc. (NYSE: C) suffered a 57% drop in its third-quarter profit. New York-based Citigroup, the largest U.S. bank, reported a net income of $2.38 billion, or $0.47 per share, compared with $5.51 billion, or $1.10 a share, during the same quarter a year earlier.

The financial giant blamed losses from subprime and leveraged loans, fixed-income trading and its U.S. consumer business for the decline in earnings.

Elsewhere, industrial and consumer products manufacturer Danaher Corp. (NYSE: DHR) announced that it will buy measurement equipment maker Tektronix Inc. (NYSE: TEK) for $2.85 billion. The deal is expected to close in the fourth quarter of 2007.

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• SORL Auto Parts, Inc. (SORL), up 12%.
• Fuel Tech Inc. (FTEK), up 10%.
• Beacon Roofing Supply, Inc. (BECN), up 7%.

Biggest percentage losers:

• City Telecom (H.K.) Ltd. (CTEL), down 6%.
• BankUnited Financial Corp. (BKUNA), down 5%.
• American Railcar Industries, Inc. (ARII), down 3%.

Producing electricity is a dirty business; smokestack emissions from coal-fired plants are recognized as a major pollutant and source of global warming. Despite these issues, coal remains the primary fuel for global electricity production, mainly because of its low cost and abundant supply.

Coal produces about half of America’s electricity and is expected to produce 57% of electricity by 2030. Most of the coal burned in U.S. power plants contains substances that cause slag to form within boilers. Slag deposits, formed when ash produced during combustion melts and hardens, reduces the boiler’s efficiency and increases pollutants.

Most of the coal burned in India and China also forms slag, contributing to serious air pollution problems in those countries. The Chinese government is making pollution control a top priority of its new 5-year economic plan, a massive challenge given that China is opening the equivalent of two new coal-fired plants each week to meet its growing power needs.

U.S. environmental regulations are becoming more stringent and utilities are under pressure to curb emissions from their coal-burning plants. The Clean Air Act Amendment of 1999 required gradual reductions in noxious plant emissions on varying timetables. Over 1,000 utility and large industrial boilers in 19 states were affected by the 1999 mandate. This was followed in 2005 by the Clean Air Interstate Rule (CAIR), which extends emissions reduction requirements to 28 states beginning in 2009. CAIR affected an additional 300 utility and industrial broilers. In 2013, the Clean Air Visibility Rule takes effect. This nationwide initiative impacts an additional 50 utility boilers as well as hundreds of industrial boilers across multiple industries. 

New environmental regulations are also addressing groundwater pollution and increasing industry demand for leak detection and secondary containment piping systems. The Federal Resource Conservation and Recovery Act requires that oil and other potential contaminants be stored, handled and  transported via underground pipelines that have leak detection systems and secondary containment tanks. These regulations are causing oil and gas exploration and production companies, gas transportation and marketing companies and oil refineries to change how they transport their products.

Companies benefiting from new pollution controls and environmental regulations include MFRI, Inc. (Nasdaq: MFRI) and Fuel Tech, Inc. (Nasdaq: FTEK), both based in Illinois.

From his ChangeWave newsletter and regular appearances on Fox TV's "Bulls & Bears," Toby Smith is one of the most popular and widely followed investment newsletter advisors. And for growth investors, he has one of the most interesting market strategies – seeking stocks poised to benefit from enduring trends, which he calls "ChangeWaves."

To help isolate these trends, Smith turns to his ChangeWave Alliance, a group of thousands of business leaders in a wide range of fields who respond to ongoing surveys regarding industry trends.

Three such trends, which he considers among his favorite macroeconomic ChangeWaves, are clean energy, carbon credits, and Chindia (China-India) infrastructure. And one of his latest stock recommendations, Fuel Tech Inc. (Nasdaq: FTEK) – with a $600 million market cap – plays into all three of these growth waves.

The advisor explains, “Coal is the fuel of choice for power generation. It's a cheap-and-abundant fuel that produces more than 40% of the world's electricity, including about 75% of China's and more than 50% of U.S. fuel.”

However, Smith adds, “Coal is not the cleanest way to provide energy.” According to the International Energy Agency, he points out, China's carbon dioxide emissions will surpass those from the United States in 2009. Smith says, “The need for China (and the rest of the world) to clean up its emissions in their coal-fired plants is the opportunity.”

Fuel Tech, according to Smith, has a solution that's “spreading like wildfire.” He explains, “It developed proprietary air-pollution-control technologies that utilities and industrial facilities can use to cut nitrogen-oxide (NOx) emissions.” Its NOx system, he notes, is installed in more than 400 plants worldwide, including China and India.

Shares of Fuel Tech Inc. (Nasdaq: FTEK) have lost power on news before the opening that the provider of engineering solutions for the optimization of combustion systems in utility and industrial applications reported a decline in second-quarter results, disappointing Wall Street.

The net income for the three months ended June 30 was $0.3 million, or $0.01 per share, below the profit of $0.06 per share expected by 10 analysts polled by Thomson Financial. The Batavia, Ill.-based company booked earnings of $2.0 million, or $0.08 per share, during the same quarter of 2006.

Revenues also missed the mark. Net sales fell 18% to $16.2 million, from $19.76 million a year earlier. Analysts were looking for revenues of $18.47 million.

“Our results thus far are below our expectations, but reflect the timing of new project awards for each business segment rather than any fundamental shift in the markets for our products and services,” President and CEO John Norris said.

Financial services firm Merriman Curhan Ford & Co. reiterated its “buy” rating on Fuel-Tech, Inc. (Nasdaq: FTEK) on news that the developer of technologies for air pollution control, process optimization, and advanced engineering services announced a teaming agreement with ITOCHU Hong Kong Ltd.

Under the terms of the agreement, Fuel-Tech will perform at least one FUEL CHEM program on a combustion unit in the People's Republic of China. Fuel-Tech will share its technology without giving up rights to its valued IP, while ITOCHU will bring established connections along with a strong local presence.

Fuel Tech's FUEL CHEM program uses specialized technology, known as “targeted in-furnace injection.” The technology is designed to offer energy efficiency gains, reduce air pollutant and CO2 emissions, reduce operating and maintenance costs, and improve safety for power plants and other combustion units.

The agreement is welcome news for the Illinois-based company, as ITOCHU has a significant interest in finding ways to play the “greening” of China, and sees great opportunity in the Fuel Chem product, said Merriman Curhan Ford & Co. analyst Jessie Herrick in today’s research note. ITOCHU sells a range of products and services to Fuel-Tech’s prime target market comprised of combustion unit customers.

Herrick notes that ITOCHU’s established footprint in the People’s Republic of China, coupled with its large sales force, creates business opportunities for Fuel-Tech.
Herrick said he is adjusting the quarterly revenue breakdown on the air pollution control of Fuel-Tech’s business for fiscal year 2007. Specifically, $1.5 million is being shifted from the current quarter into the fourth quarter of 2007 to account for the timing of orders associated with the tightening of emissions standards in 2009.

The Russell 2000 index and the Dow are trading close to the flat line this morning. At 11:19 a.m. ET the Russell 2000 was down 1.60 points, or 0.19%, to 846.74. The Dow Jones Industrial Average was up 11.62 points, or 0.09%, to 13,647.04.

Fuel Tech Inc. (Nasdaq: FTEK) will be expanding into China, the Batavia, Ill.-based developer of proprietary technologies for air pollution control announced after Tuesday’s close. The company has signed an agreement with a subsidiary of Japan’s ITOCHU Corp. to jointly test its energy efficient technology on a combustion unit in China. The technology is currently used in coal-fired electric generating units and other waste-to-energy units in North America and Europe.

The following are the most actively traded companies in pre-market trading among those with market capitalizations under $500 million (at 8:46 ET):