Solutions to the worlds energy efficiency and water conservation challenges.

May proved to be the worst month since last September,for the stockmarket. Even the massive Facebook Inc IPO could not bouy the markets up for long. In fact Facebook shares have fallen in six of its nine trading sessions, so far. Overall investor sentiment has sunk during the last month,due to lingering economic concerns, the relentless Euro-zone debt crisis and still high rates of unemployment in the UK, USA and Europe. Spain is at the centre of the latest European developments as concerns grow that Madrid's government will sooner or later have to ask for outside help for its banks. Greece is still hovering on the verge of leaving the Euro.

Commodity prices also fell with the euro at 23-month lows against the U.S. dollar. But the US dollar weakened sharply versus the yen, a sign that investors are moving money into perceived safe havens. Gold made a strong start this year, but it has been sliding for the last four months. It may stage a bit of a recovery if the huge volatility on the equity, commodity and forex markets continues.

Our pick for the Ethical/Renewable Energy Portfolio this month is:

• Wasabi Energy (WAS:ASX and WAS:AIM)

Wasabi Energy Limited is a clean technology company dual listed in Australia on the ASX (WAS) and in London on AIM (WAS). Wasabi's core businesses provide commercially viable solutions to the worlds energy efficiency and water conservation challenges.

The core businesses operate through three separate companies:

1.Global Geothermal Limited which generates power from waste heat and geothermal sources, without fuel.

2.Aqua Guardian Group Limited which is a water conservation company which invests in and develops businesses, technologies, and solutions for the preservation and enhancement of water resources in Australia and internationally.

3.Australian Renewable Fuels Limited (ARF) is an Australian company currently producing biodiesel at two plants - one in Adelaide, South Australia and another in Picton Western Australia. ARF produces biodiesel meeting the strictest biodiesel standards worldwide.

Wasabi also has stakes in Clean TeQ, which cleans up the water from mining and shale gas.

The company has grown significantly over the past 12 months and now has the key platforms in place for continued growth and future profitability.Wasabi Energy continues to deliver on its objectives and is building a portfolio of assets to make it a profitable company that delivers sustainable solutions to environmental issues.

The past year has been transformational in positioning Wasabi Energy for future growth, but obviously, given the field it operates in and its size, it’s not a stock for the faint hearted. But if you’re looking for an interesting speculative play on alternative energy that should be able to avoid the pain of a China slowdown, it could be worth a look. Check out all the details of this company in the report on the website...