Ironically, only product that does not seem to be on list of end uses is diapers. Roofing shingles, sure. Shoe insoles, yes. But not diapers. As I pondered how world might look if massive force of dirty diapers was unleashed, it became clear that there could be several big markets. Imagine pitches ...

From Milan and Paris: "Next we have Oo-La-La Picotte strutting her stuff in a lovely ensemble of pure recycled diapers. Notice fashionable fuchsia on upper tilt of collar. This line will be all rage in parlors and bars this spring."

From Detroit and Tokyo: "Feel energy and invigoration. That's power of 100% pure recycled diapers under hood. Go ahead. Kick tires. Pick your color. And drive away safe in knowledge that you are being protected by 2000 pound of pure recycled baby poop!"

From Los Angeles: "It's a smash hit. Dirty Diapers II: The Recycled Story opened in theatres across country yesterday and immediately claimed number one spot. What a movie!"

From New York and Toronto: "This just in. Citizens are being asked NOT to hoard dirty diapers. I repeat, do NOT hoard dirty diapers. The shortage has already slowed economy by three percent and housing starts have ground to a halt. Please take all your dirty diapers immediately to a drop-off depot. This has been a public service announcement."

So what will YOU be doing with your dirty diapers?

Below is a 3-month chart of Greenman Technologies Inc (AMEX: GRN) compared to KBF Pollution management, Inc. (OTCBB: KBFP) and Pollution Index (POL).

Looking for Green

First of all, "classifications" can be confusing. GRN is classified as "business services", yet their S&P Company Report classifies them as "capital goods: environmental services" and KBFP is classified as "waste management services".

Trusting numbers is another issue. Market Guide portrays information to be current, yet based on their recent announcements of sales and earnings for 3rd quarter ending Sept 30, neither GRN or KBFP's is exact. Data often isn't enough, you have to look deeper to find green.

Clearly both companies are undervalued. Their industry classifications show very high P/E ratios. Makes you think your looking at Microsoft's numbers about 10 years ago. GRN is outperforming its industry average and based on those averages, if it traded equal to its peer group stock should be priced around $3.50 not $2.00 where it currently trades. KBFP on other hand has an even higher P/E ratio for its industry classification; Market Guide's figures appear to be wrong. KBFP announced on 11/14/02 that its sales had increased 50% for quarter in comparison to same period in prior year and its earnings were reported to be $273,508 for period ending compared to $109,700 for previous year! So based on that recent announcement, KBFP is also undervalued. If it traded equal to its peer group stock should be priced around $0.10 not $0.06 where it currently trades.

Let's examine why Axcess Business News believes these are safe investments. The five year earnings per share growth estimates for GRN's industry classification is 17.67%. Is your sagging portfolio of Telco stocks giving you that? I don't think so! GRN has debt, yet they've been very aggressive in expanding through acquisition and only recently listed to AMEX from OTCBB in September. KBFP's industry classification (5yr earnings per share growth estimates) is 25.93%. We like those kinds of numbers even better.

Both of these green investment companies have been aggressive and showing stellar improvements in their sales and earnings. They both have a lot of debt. But they both have a consistent market and most likely Market Guide's 5-year industry averages are close to reality. Give those 5yr averages a 50% haircut and you've still got a good return. Better than DJIA, certainly better than money markets or certificates of deposit and there's room for appreciation as both companies are trading about 50% lower than their industry average.

Axcess Business News thinks that KBFP may be on same path as GRN. They too are postured for growth and if they begin to go after acquisitions and list up to AMEX (remember, GRN was on OTCBB) it could easily catch up to its peer group. GRN on other hand has a head start and based on its prior growth investors may see more acquisitions happening.

Axcess Business News will continue to report on activities of these companies for our readers as it's sure to interest investors. Members should watch for an Axcess News Alert in their in-box! If your not a member, consider subscribing now and you can get these great market alerts too!

To view more wall street stories by Freddie Mooche, go to http://wwwtheaxcess.net and subscribe. Its free!