This from Penny Sleuth:

We don’t play politics at Penny Sleuth. Frankly, we can’t agree on politics. But that doesn’t mean smart investors should ignore what Washington’s doing. Some of the largest profits in history spawned from legislation and court rulings.

Take solar energy for example. After the introduction of the Solar Energy Research and advancement Act of 2007, investors watched as solar companies’ share prices exploded.

One of the biggest winners was First Solar Inc (NASDAQ:FSLR). The bill was brought before the House of Representatives on June 19, 2007. Over the next 12 months, First Solar’s shares jumped 300%.

Another was SunPower Corp (NASDAQ:SPWRA). SunPower’s shares blew up 151% in just six months.

Both of these gains can be directly contributed to a small bill being read in the House. This can happen on any particular day with any particular piece of legislation. We never know which bill or act will cause such run ups. But after November 4, we have a pretty good idea.

Obama Profit Opportunity No. 1:
Science’s Most Important Breakthrough in Centuries

While on the campaign trail, Barack Obama called for the ban on stem cells to be peeled back. He said that we have a duty to advance science in any way we can to cure the sick and improve the health of the world.

This should send all stem cell stocks through the roof. But if investors can pinpoint the right biotech/R&D firm, they’ll see the largest of these gains. Potentially collecting triple or even quadruple digit profits.

Fractured Spinal Cord? No Problem

Neuralstem Inc (AMEX:CUR) is an industry leader in Human Neural Stem Cell technology. Simply put, Neuralstem is working on cures for central nervous system diseases. The company currently has four issued patents and 12 more pending. Each of these are crucial to the industry. It limits competition, while providing a lucrative asset for future growth.

These patents cover a specific regenerative process where neural stem cells are administered to the area where a spinal cord fracture occurred. These stem cells grow and heal the fracture, which restores motor functions to the parts of the body where it’s been cut off.

For instance, if someone falls and fractures their spinal cord, there’s a good chance that person will lose control over the lower half of his or her body. In the past, that person would never be able to walk again. With Neuralstem’s technology, a simple injection can restore the person’s control.

Currently, the market values Neuralstem at just $51 million. Shares can be bought for around $1.60. That’s obviously too cheap. It’ll only take one bill, announcement, or speech to send shares flying. It appears that the stem cell ban will be lifted in the first 100 days of the Obama Presidency, so Neuralstem could see a huge boost in early 2009.

Obama Profit Opportunity No. 2:
Fixing Renewable Energy’s Fatal Flaw

There is only a certain amount of time during the day when windmills can produce energy. The average capacity factor for wind power is about 30%. The rest of the time, these windmills sit like giant statues, waiting for the next gust of wind. During that period — the “energy time gap” — no new electricity is going onto the power grids.

The same goes for solar power. The sun doesn’t shine 100% of the time. Even in the vast deserts of the U.S. Southwest in the peak of summer, the sun is up only about 14 hours per day. When it is up, there are problems with cloud coverage. The average capacity factor for solar power is around 25%.

Round-the-Clock Energy Storage

ZBB Energy Corp (AMEX:ZBB) designs and manufactures a special type of fuel cell storage device called Zinc Energy Storage Systems (ZESS). ZBB’s systems are used worldwide in the renewable energy fields. For instance, wind and solar farms use ZESS to store extra energy during peak hours. Then, in off-peak periods (no wind or at night), the ZESS can transmit its stored power to the grid. This system allows for continuous electricity 24 hours a day.

Here’s the best part… It only takes three to four hours to charge a ZESS. That’s plenty of time to store the solar or wind power during peak time. The company sells its systems to wind and solar farms, utilities, and commercial/industrial sites.

Banking on the First 100 Days

Within the first 100 days of Obama’s Administration, the demand will likely multiply. Obama plans to invest $150 billion to help create five million jobs in clean energy over then next 10 years. You can bet that a good portion of that money will be sent to wind and solar farms. Those farms will need to increase efficiency and storage. That’s when they’ll call ZBB.

On top of the spending, Obama has already declared he’ll push for new, strict mandates on energy and efficiency. For instance, he’s calling for 10% of our electricity to come from renewables by 2012 and 25% by 2025.

Obama Profit Opportunity No. 3:
It’s Upgrade Time

Many investors run from the defense industry when they hear a Democrat coming. We think you should jump right in. You see, the largest defense contracts in our nation’s history have come under Democrats. In fact, almost every period of the military buildup has come from a left-of-center White House…with the exception of Ronald Reagan.

As we enter our sixth year of the Iraq War and our eighth year of the one in Afghanistan, our weapons, vehicles, and equipment are desperately overdue for repairs and upgrades.

Whether you are a Democrat or a Republican, you still provide our troops with the best equipment available. It certainly wouldn’t look good for Obama to enter the oval office on day one and cut equipment upgrades to the troops in war zones.

We think he’s going to take the opportunity to “reach across the aisle” and upgrade our military’s technologies and defenses. He’ll want to do that early if he plans to get any of his agenda passed.

Niche Player in a Mega Industry

That’s why we recommend you check out Herley Industries (NASDAQ:HRLY). Herley is a leader in RF microwave and millimeter wave components. These components are crucial to flight instrumentation, weapons sensors, guidance systems, and radars.

The company currently has a backlog of $157 million, with a market cap of just $139 million. Herley’s list of customers include Northrop Grumman, Boeing, Lockheed Martin, and the U.S. government.

While you might not have heard of it, Herley has been around since 1965. It’s been designing microwave devices for the defense industry for over 40 years. The company’s technology has been implemented in such projects as the F-16 Falcon, E-2C/D Hawkeye, and the AMRAAM air to air missile.

This kind of background puts it in the front spot for any future defense upgrades. On top of that, it’s stock is extremely cheap. It’s trading at just 0.72 price-to-book, and 0.63 price-to-sales.

Defense is likely a top priority for the incoming Obama Administration. The time is right to jump in on a niche defense company like Herley.

Source: The Three Best Plays for Obama’s First 100 Days

Such showdowns between lawmakers and oil titans have become a familiar routine on Capitol Hill. But with gas prices nearing $4 a gallon, and lawmakers headed home for a weeklong Memorial Day recess where they expect to get an earful from angry constituents, there is added urgency for Congress to appear active.

But while momentum is building for several measures, including a bill that would allow the Organization of the Petroleum Exporting Countries to be sued in American courts under antitrust laws, there is little sign that any of the proposals would do much, if anything, to lower prices quickly.

The hearing on oil profits came as Capitol Hill struggled to be seen to be ‘doing something’ about the 15-day run of record gas prices.

This week, the House voted in the so-called “Nopec bill”, which targets the OPEC oil cartel as a monopoly in violation of the Sherman Antitrust Act. Senate Democrats are also targeting windfall profits by oil companies and speculators in the oil futures market that they blame for high oil prices.

The oil company execs hit back at yesterday, however, pointing out that the fundamental laws of economics — such as supply and demand — was responsible for high oil profits.

“As repetitive and uninteresting as it may sound, the fundamental laws of supply and demand are at work,” said John Hofmeister, the president of Shell Oil. “Oil exporting nations, as has been said, are managing their natural resource development and production to supply their local and global markets in their own self-interest.”

Commodities investing expert Doug Casey at CaseyResearch.com points out that in its weekly inventory report, “the Energy Information Administration said that crude stocks were down 5.4 million barrels for the week ended May 16. Analysts had been expecting a rise of about 900,000 barrels.”

Keith Fitz-Gerald of Money Morning says the US can’t refine or drill its way out of the oil crisis, either.

“For one thing, refiners are the ultimate middlemen and they’re pinched at these prices. They simply can’t make money as they try to refine an increasingly expensive product and sell it to users who are chaffing at $4 a gallon. That’s why stocks like Western Refining Inc. (WNR), Tesoro Corp. (TSO), and Valero Energy Corp. (VLO), for example, have fallen by nearly 30-40% in recent months. Their margins get worse with each up-tick in oil prices from here on out now that we’ve reached a point where high prices are beginning to dampen demand.”For another, drilling and refining our way out of this assumes we have oil to begin with… we don’t. And even if we turn the Alaskan Tundra into Swiss cheese, the demand reduction we’re seeing here in the United States is being dramatically offset by developing countries that are guzzling gasoline at unprecedented rates.

Read on here to find out why Keith says oil prices will reach $225 a barrel and how a simple three-step plan can bring down oil prices, without the kind of political showboating seen Washington yesterday.