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Heating Up LSB Industries (BusinessWeek)

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HEATING UP LSB INDUSTRIES
One goal of the Obama stimulus package is to invest in renewable energy and fuel efficiency. Many companies will benefit, and some investors say a smart way to play the stimulus is through LSB Industries (LXU), an under-the-radar outfit whose shares have climbed to 10.29 from a 52-week low of 6.62 a year ago. It's a leader in geothermal and other energy-efficient heat pumps and fan coils, used in residential, commercial, and government buildings.

LSB should gain from the $12 billion in the stimulus plan designated for making federal and state buildings more energy-efficient, says Daniel Mannes of Avondale Partners, who rates the Big Board-listed stock outperform, with a 12-month target of 14. Schools will also get funding to upgrade their energy systems. Geothermal pumps save money as they require less energy to operate, explains Mannes.

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