Every portfolio needs a few oddball microcaps just for sport, and Advanced Environmental Recycling Technologies Inc. (NASDAQ: AERT) fits the bill.

Advanced Environmental is "green." It uses proprietary processes to recycle polyethytlene plastic and other types of scrap plastic to make construction materials including a composite plastic outdoor decking material. Previously the company had used recycled plastic in the construction of window sills, but is now moving away from that product.

Considered on its own, the company currently does not look that attractive. 4Q2007 sales plunged 54% and FY2007 sales were down by 16% to $82 million. FY 2007 net loss (unaudited) stands at $9.5 million. Nonetheless, the company has several things going for it.

I have been feeling guilty about not posting in a while but I have been traveling and just came upon something worthy and a terminal that is convenient at the same time. Warren Buffett of Berkshire Hathaway (NYSE:BRK.A) has made big news recently having purchasing an Israeli metal working company named Iscar, his first outside the United States. My day has been spent with Jonathan Medved of Israel Seed Capital, that most notably just sold Shopping.com (another Israeli Company) to eBay, Inc. (NASDAQ:EBAY)...so what now?

It turns out that a company called GNRY Green Energy has started generating substantial amounts of power utilizing steam generators for industrial use primarily associated with food processing plants. GNRY has taken equipment readily available in the United States and waste product from trees in Israel, and instead of disposing of them in landfills is using them as fuel. By utilizing existing technology, looking backwards -- wood is an ancient fuel -- and extending its usefulness in a way not previously used in these types of factories, they are moving forward by salvaging waste to reduce energy consumption at the plants and conserve precious land.