"For example, it takes four tons of water to produce enough food for one person for one day. One hamburger requires more than 2,500 gallons of water.

"We currently have the technology to convert seawater to fresh water through a process known as desalination. It's likely the only way the world's water needs will be met. However, it's also an expensive process, due to the vast amount of energy required in the conversion process.

"That's where Energy Recovery comes in. The company makes the PX Pressure Exchanger – a device that captures the wasted energy in the desalination process and recycles it back into the system. This reduces energy costs by up to 60%.

"In some areas it's now cheaper to desalinate seawater than to pump fresh water in from miles away. Energy Recovery is making strong headway in this business, with its water products already installed in more than 300 projects around the world.

"We've heard a lot about America's crumbling infrastructure in recent months – and President Obama's bold plan to spend billions to repair and upgrade many parts of it. And make no mistake... hundreds of billions of dollars will be spent on water infrastructure projects over the next decade.

"In fact, current estimates have the U.S. and China spending more than $200 billion each by 2019 to build and update their water infrastructures. And over the next 2-3 years, several hundred more projects will be completed around the globe, representing potential revenue of $500 million.

"There's a large backlog of projects waiting to get underway, many of which secured financing before the credit meltdown occurred. And because it's such a critical industry, both in terms of sheer human necessity and job creation, governments guarantee most of the larger jobs.

"Turning to Energy Recovery's financials, the major number of note is that the company boasts $79 million in cash and less than $1 million in debt. It's also profitable and cash-flow positive. It's no upstart either – the company was founded in 1992 and has a stellar management team at the helm.

"The stock isn't cheap – not in Price-to-Earnings terms anyway. The company is expected to earn $0.24 in earnings per share in 2009 on revenues of approximately $69 million. Still, ERII is the only publicly traded pure play on water desalination and no competitor has a product as simple or effective.

"Moreover, with annual growth of over 27% expected over the next few years, we should grab the chance to get in at current levels. I expect this stock to pay us handsome rewards for years to come. I expect the stock to rise several-fold over the next few years."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.