The usual then and now charts, then being a year ago (Dec 7, 2012). It was indeed a buy and it did double from that point. It has gone up in 5-waves and therefore should drop , at least, to about $20. After that it remains to be seen if a new bull market had started –possible a wave 5 if we got the count wrong – or part of a complex correction. We have no idea and are therefore out.

The usual then, Aug 2011 and now charts.

It was a buy at $12.31 but do use a stop just in case water stops burning.

Yes, these are the guys that figured out how to burn water, but, as always, timing is everything. Here are the then  (Aug 18, 2011) and now charts;

You need to enlarge the charts to properly see how nicely the stock followed the script. The low so far was at $12,30, very close to the indicated 61% anticipated drop. The count does not quite look as if it is complete. The third wave on the way up was extended and often corrections go right to the top of the first wave, in this case $12 . Do use a stop just in case somebody exposes the truth by finding out that their proprietary formula for burning water does not work as well as advertised. The stock pays a dividend of 6.7%.

Below is a more detailed chart that shows that there might still be a wave missing;

WaterFurnace builds units (essentially compressors) for geothermal applications. They extract the heat from the ground (roughly 15 to 16 degrees C.) and then upgrade it to a useable level for home heating. For each unit of energy that goes into the system, 5x as much is returned in heat. Large in ground loops extract this energy by running water (and anti-freeze) through them, so in a manner of speaking these units appear to be burning water, hence the name. The technology is not new, it is the same one used by Frigidaire a hundred years ago, but it took time to overcome some of the corrosion problems. High fuel prices and low interest rates certainly helped to put this on the map.

The stock completed a 5-wave sequence. The middle high point (there are 3) is the real one, which by the way, is another good example of getting out at double or triple tops. The correction seems to be taking the form of an A-B-C. Presently we are somewhere in the 3d wave. Typically we should drop to a 62% retracement, a little above $12. Typically wave C relates to wave A by a factor of 1.62X which suggests $12. Before we get there we still need to finish 3 and go through 4 and 5. $ will most likely be a flat or triangle (alternation) so we can monitor this one as it moves to the expected target.

The stock pays 4.18%.