Cabot Green Investor

We’re currently featuring a stock Cabot Green Investor that I have great expectations for and it’s the top stock pick I promised you: Tetra Tech (TTEK). As the government and corporations look to get more environmentally sound, they’ll be turning to Pasadena, California-based Tetra Tech, an environmental consulting company that does everything from figuring out how to clean up the Port of Los Angeles to where best to site wind turbines in upstate New York.

Essentially, Tetra Tech is the environmental expert people turn to the figure out the nitty gritty of getting eco-projects done. Its architects designed the ultra-Green office building Visionaire in Manhattan while its massive model on global warming is the standard world governments refer to.

The company’s core business is built around safe drinking water–the U.S. Agency for International Development is using the company to create drinking water systems in Afghanistan while its engineers are tackling water and sewer systems for cities including Detroit and Seattle.

Growth is impressive (if not eye-popping) at a compounded annual rate of 28% since 2004, but it is seeing booming interest in its wind business, which promises to add a strong growth element to sales.

In wind, Tetra Tech does everything but build the turbine–it selects optimal sites, handles permitting, coordinates with utilities and more. T. Boone Pickens is one notable client.

Tetra also has some crucial advantages that make it a fine defensive play: with one-third of revenues coming from the federal government, sales are more predictable, while in a credit-crunched market, the company’s management works with exceptionally little debt. In fiscal 2008, in which is generated $1.22 billion in net revenues, it had just $6 million net debt on the books. Net income per share for fiscal 2009 (ending September) is estimated to come in at $1.14 a share on sales of $1.3 billion–and that’s before any stimulus package money has worked its way into the system.

I first alerted Cabot Green Investor subscribers to TTEK in November and we added it to the Cabot Green Investor portfolio in February. TTEK is still trading at a fine price right now, but the stock hasn’t made the advancing move we’re expecting. By year’s end, I expect Tetra to reward investors with an eye toward capitalizing on the shift to Green we’re all a part of.

Whether you join in subscribing or not, here’s to a rewarding portfolio and a rewarding life for each of you.