(By Tim - iStockAnalyst Writer) Frustration remains high for value and fundamental oriented stock investors. After a nice 5 day run up from recent market lows the market gave back 2/3 of the recent gains on Monday. As has been typical with this bear market, positive company news will not prevent falling share prices if the entire market is selling off. Earnings are being negatively affected in the financial, retail and now energy companies. However, there are still plenty of companies whose business models work just fine in a slower economic environment. Eventually, we should start to see the benefit of lower commodity prices for companies that have long term contracts to deliver their finished goods and their raw materials cost significantly less.

Zoltek Companies, Inc. (NASD:ZOLT) is a company that should be able to both continue their growth pattern and benefit from lower raw material costs. Zoltek is in the carbon fiber business and until about 5 years ago their major market was sporting goods: golf clubs, skis and bicycles. The growth of wind turbine energy and the ever increasing size of the turbines has propelled Zoltek into the renewable energy business. The high strength and stiffness of carbon fibers make them a necessary element of wind turbines as they became larger and larger to generate more energy. The amount of energy generated is the square if the increase in turbine diameter, so bigger is definitely better.

Zoltek has become the top provider of carbon fiber for wind turbines. Their success in this area has led to other opportunities in both alternative and conventional energy. Carbon fiber is finding growing use in the fuel cell industry for the manufacture of high strength natural gas and hydrogen storage and transport applications. Carbon fiber reinforcement components are also becoming necessary for deep sea oil drilling rigs. As oil companies drill in deeper water carbon fiber will become a larger part of platforms, pipes and tether lines. The next growth area for carbon fiber is the automotive industry. Carbon fiber has been used in the aerospace industry for years where the lightness and strength were required in spite of the high cost. As the cost for carbon fiber comes down these same qualities can be used to make autos stronger and more fuel efficient.

Zoltek has just reported record revenues for the 4th quarter and all of 2008. The company had a loss of 5¢ per share in the 4th quarter and net income of 22¢ for the entire fiscal year. Revenues for 2008 were 23% greater than 2007 yet failed to meet the companies growth targets. Zoltek is aiming for $500 million in revenues in 2011, almost 3 times the $185 million revenues of 2008. The stock went public in August of 2007 and the company has had some management issues but now has plants in the U.S.., Hungary and one recently opened in Mexico. The Mexico plant alone has the capacity to produce $600 million of carbon fiber at today's prices. Zoltek has 6 competitors in the manufacture of carbon fiber and their goal is to obtain 1/3 of the worldwide market that is growing at 25% per year.

The manufacture of carbon fibers is very energy intensive and falling energy prices should significantly improve margins. For 2008 In my opinion the margin between cost of goods and selling revenues were very tight for Zoltek and the company needs a better spread to be successful. Expanding margins are the key for Zoltek to increase bottom line profits as revenues continue to grow. ZOLT's current market cap of $225 million is less than next year's projected revenues. The stock price is off 85% from the days when renewable energy was considered a hot growth market. I think renewable energy is still a growth industry and Zoltek is a solid way to invest in the continued growth of wind energy.