2 Companies Solving One Of The Biggest Problems In America

Andy Obermueller's picture

Tuesday, November 17, 2015 - 10:30am

by Andy Obermueller

I've always been fascinated by the Pet Rock. 

For the past four decades now, it's become the epitome for an idea so cleverly simple, you wish you'd thought of it. 

The creator -- Gary Ross Dahl -- decided in the late 70's that a rock would be the perfect pet for kids who would never have to feed or walk it. The fad only lasted about six months, but it made Dahl a millionaire. 

The fact is there's big money to be made from simple ideas. And while a lot of problems may be complex, I've noticed the best solutions are the ones you always end up wishing you'd thought of first. 

Take California's devastating drought situation...

Consider these three facts: 

1. California has more people than locally available hydrological resources can support. 

2. The region is in the throes of a serious long-term drought. 

3. The place sits next to the largest body of water on the planet.

Now I don't profess to be the sharpest hedge clipper in the potting shed. But even I can see the simply obvious solution to this massive problem...

Find a way to talk the salt out of the damn seawater. 

Well as it turns out, that's already happening. It's a process called desalination and though it's already been utilized for years in many Middle Eastern countries, the process is now being revolutionized by a number of American firms. 

Global defense giant Lockheed Martin Corp. (NYSE: LMT) is one of them. The company recently patented a game-changing new membrane for filtering out sodium, chlorine and other ions from saltwater. 

It's called "Perforene," and it's easily the thinnest membrane ever created, sitting at just one-atom thick and featuring holes that are as small as one nanometer in diameter. For comparison, a strand of human hair is roughly 100,000 nanometers wide. 

Lockheed's membrane is not only expected to help solve California's drought crisis, but also to remedy a major problem facing the U.S. oil and gas industry -- the roughly 18 billion gallons of wastewater being accrued each year.

It's no wonder Lockheed Martin's vice president Daniel Heller was recently quoted as saying, "Ultimately, desalination is the Holy Grail." 

I couldn't agree more with Heller; sooner or later desalination is going to be big business. And it's going to make early investors a lot of money along the way. 

Now of course Lockheed Martin has been around for years and has its fingers in a lot of other pies as well. As far as buy-and-hold investments go, it's hard to argue with the company's long-term outlook. 

But if you're looking for an investment with a little more game-changing potential, I've found a little-known company doing its own part to solve the nation's growing water crisis.

Construction crews in San Diego County are putting the finishing touches on a $1 billion desalination plant that will be the largest in the Western hemisphere, able to cleanse about 50 million gallons of seawater every 24 hours. The problem is this plant will be a pricey solution. 

Currently water bills in the area average about $75 per month. The new desalination plant will push that up to nearly $80. That's because the plant will require a heavy dose of electricity to run its pumps that blast the seawater through filters. 

The game-changing firm I recently came across manufacturers a unique piece of equipment that decreases a desalination plant's electricity usage by half

The device is called a "Pressure Exchanger" and it's considered 97.2% efficient. No wonder it has already been installed more than 15,000 times in hundreds of desalination plants all across the world.

That's led to $1.4 billion in electricity cost savings each year and has provided 3 billion gallons of new clean drinking water every day for people who otherwise wouldn't have it.

As California continues to turn to desalination to source its increasingly scarce drinking water, the game-changing company that creates this critical piece of equipment is likely to see a big bump in domestic sales. 

And that could translate into a huge jump in the company's share price.

I recently highlighted this under-the-radar company to a group of investors in a report I sent them called "10 Shockingly Profitable Predictions for 2016." 

This report contains what I consider to be the 10 most profitable-yet-overlooked opportunities for the coming year. And desalination is just one game-changing topic I cover in this report.

My report covers also reveals how President Obama's recent political upheaval could bring a revolutionary new drug to U.S. pharmacies... Why a $65 billion industry could stun Apple and outsell its newest device by 3-to-1... And even why one of America's most iconic institutions could close down thousands of its locations in 2016. 

For each of these predictions, I reveal how the trend is expected to shape its respective industry, and which unknown companies have the greatest chance to soar triple-digits as the result of these upcoming changes. 

I'm sending out this report free to the next 100 investors who request a copy. So if you'd like to receive your free version of "10 Shockingly Profitable Predictions for 2016" you can tell me where you want it sent by clicking here.

Andy Obermueller does not personally hold positions in any securities mentioned in this article.
StreetAuthority LLC does not hold positions in any securities mentioned in this article.