If you have been looking to invest in the energy sector, Perfectenergy (OTCBB: PFGY) is a great candidate for your small cap portfolio.

With the present condition of the market, investing in solid companies with a strong record of profitability is a key component for your portfolio’s success. A company that exemplifies these characteristics is China Display Technologies (OTC BB: CDYT). CDYT is currently trading at a P/E ratio of 4, while other companies in its industry are valued at an average P/E ratio of 25. As far as consistent profitability is concerned, CDYT has reported eight consecutive quarters of profitability, and it is expected to continue double-digit earnings and revenue growth for the fiscal year of 2008.

Perfectenergy is a very exciting company with a tremendous growth rate, it trades at the symbol PFGY (click here for the company profile). The stock is currently trading at $1 per share which is extremely undervalued compared with its peer group. PFGY has seen a 800% revenue growth rate with the last fiscal year generating $41 million in revenue with a net profit of $9 million dollars. The year prior PFGY generated $5 million in gross revenue. With these revenue numbers, PFGY should be trading around $3 per share, if you want to get into the alternative energy market, PFGY is a choice selection due to their undervalued share price combined with their solid revenue numbers.

China Display has achieved rapid growth driven by their successful market expansion efforts in both foreign and domestic markets.

It is clear that there is a high ceiling for solar energy companies to have expansive growth in Asia. With the windfall of economic surplus combined with the creation of a true middle-class population, China has very sizeable need for renewable energy resources, and companies that are positioned to fulfill this need are key investment targets. One such company is Perfectenergy (PFGY).

China Display Technologies trades at the symbol, and offers investors a great opportunity due to the management domain expertise along with market potential.

If you are an investor looking to strategically invest in the solar industry, you really need to take a look at Perfectenergy International Ltd.