"Itron (NASDAQ: ITRI), which is involved in the build-out of smart grids -- has been our radar screen for awhile," says growth stock expert Toby Smith.

In his ChangeWave Investing, he suggests, "As the top supplier of smart meters and meter infrastructure for the electricity industry, Itron is by far the best-positioned company for the smart grid build-out."

"The build-out of smart grids employs technologies that deployed across an energy grid which allow greater efficiency and flexibility during energy distribution and transmission.

"The cool thing about smart grids is that they are capable of isolating and better managing power outages and disruptions, integrating local power generating equipment, and avoiding electricity congestion or bottlenecks.

The third name in my list of the top 25 stocks for the NEXT 25 years (again, in no particular order) is Color Kinetics (NASDAQ: CLRK). This Boston-based company has the opportunity to redefine the world of lighting -- a massive market. Color Kinetics closed at $21.55 and currently sports a market capitalization of $459 million. Color Kinetics has $100 million of cash on its balance sheet. My estimates for this year call for revenues of $85 million and earnings per share of $.44-.47 and for 2008, revenues of $110-112 million and earnings per share of $.65-.67.

Color Kinetics makes intelligent solid-state lighting systems using light emitting diodes (LED). The company has 68 awarded patents in its portfolio with another 100+ applied for. The intellectual capital that Color Kinetics possesses is becoming extremely valuable. Its business model is to directly sell lighting systems, from architectural design to implementation, to licensing its technology, to third party partners.

The world of lighting is undergoing a revolution and Color Kinetics is emerging as one of the de facto leaders. The traditional incandescent light bulb is going the way of the horse and buggy. The incandescent bulb uses far too much energy to operate efficiently, and the lifespan is limited to normally a couple of thousand hours. LED lighting, not yet economical for mainstream homeowners, is winning in the commercial world. Color Kinetics systems are the choice for casinos, theaters, new commercial building projects, and street lighting. The technology included allows the customer to change the color of the lights from pure white to an array of different colors. The physical beauty of the systems are awe-inspiring.