With the price of crude oil nearing $100, much attention has been paid to alternative energy. While their stocks have been moving up on hype, it's nice to see that some of the companies are actually executing their business plans and growing profits. The Israeli company Ormat Technologies (NYSE: ORA) is one of them.

Ormat designs, develops, builds, owns and operates geothermal and recovered energy power plants using Organic Rankine Cycle (ORC) technology. Additionally, they design, manufacture and sell geothermal and recovered energy power units and other power-generating equipment.

Ormat reported net income for Q3 was $15.8 million, or $0.41 per share (basic and diluted), compared to $13.9 million, or $0.39 per share (basic and diluted), in Q3 '06, an increase of 13.1%.

Dita Bronicki CEO said, "In short, our Electricity and Products Segments are performing well and we are strategically investing in growth opportunities that will build on our success and contribute to our growth in the years to come."

In addition to the strong numbers, and being in a "hot" space, the company has been at the center of many rumors, of a potential takeout. Goldman Sachs (NYSE: GS), along with Apax private equity, have expressed interest, and Israeli real estate mogul, Chaim Katzman (no relation) has been buying up shares for the better part of a year. All of this bodes well for investors.

Disclosure: Author has a position in ORA. Author holds no positions in any other stock mentioned as of 11/7/07.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com.