Among the companies making the cut on these bases was construction-material maker Carlisle Companies (CSL), where he put 1.1% of Amana's money in April at an average price of $30. Carlisle has become the dominant supplier of so-called "green" roofs, which help reduce the energy needs of large retail and industrial operations. Growing demand for such improvements in both new construction and retrofits is propelling secular earnings growth of 18.3% a year. At the time Amana acquired the shares, the trailing P/E was about 11, and earnings per share had jumped 50% over the previous two years. Kaiser moved into the stock when shares pulled back on disappointing first-quarter results. The decline was attributed to write-offs associated with the pending sale of a division, which he considered a one-off event. By early June, the stock was trading at nearly $32.

When the conglomerate Canadian Pacific split into several groups in 2001, it created some attractive opportunities, which Amana is still in. Kaiser started building his 1.3% stake in Canadian Pacific Railway (CP) at an initial cost of $11. Today, shares are trading at $65. The railroad, which serves Canada as well as portions of the U.S.'s Midwest and Northeast, has benefited from the commodity boom and a more competitive cost structure, which has helped get some pricing power back into the industry. CP's contract with its offshoot Fording Coal links transport charges on the price of coal. As a result, the railroad gains as coal prices rise. Meanwhile, increased spending on technology is realizing new efficiencies through improved tracking of cargo and trains.

EnCana (ECA), among North America's largest energy producers, with a market cap of $65 billion, was also spun off from Canadian Pacific. Kaiser established his initial position at around $12; the stock recently was quoted at 89. Amana's been increasing its stake since 2004, and it now represents 1.8% of his portfolio. Frustrated by its shares' recent undervaluation, Encana's management last month announced plans to split its natural-gas production from its integrated-oil operations. The latter, which derives petroleum from Canadian tar sands, has reserves large enough to meet all of the continent's oil needs for the next four years, according to Kaiser. News of the proposed 2009 spinoff helped send EnCana's shares up $10. Kaiser sees even more upside.

Kaiser als likes (UPS). Having initially moved into the stock in May 2003 at $61 and subsequently built up a 1.7% position, he's a big believer in the company's strategy of offering end-to-end logistical support for its clients. "UPS is an outsourcing play," Kaiser explains, "which should profit from corporate efficiency improvements spreading across a variety of industries." Rival DHL has become a major client, subcontracting out a portion of its domestic deliveries to UPS. By making use of UPS' excess capacity, the deal could boost earnings 15% by 2010, Kaiser says. Trading around 68, the shares haven't moved as much as Kaiser had expected. But he sees 15% upside over the next year.

AT&T (T) common stock is one of the fund's larger dividend plays, with a yield above 4%. "The company enjoys steady 10% earnings growth, driven by the continuing revenue shift from land lines to wireless, data services and increasing corporate penetration," says Kaiser. That's helped AT&T increase its dividend from $1.30 to $1.60 over the last two years. The prospect of bigger payouts encouraged Kaiser to establish AT&T as one of Amana's larger holdings two years ago at $25. The P/E at the time was less than half the industry's average, even though earnings were growing at a double-digit clip. Shares have since appreciated by 50%. Because the fund can't own Apple -- it doesn't pay a dividend -- AT&T is an effective proxy as a distributor of Apple's iPhone. Kaiser foresees substantial contract growth upon release of the upgraded iPhone, scheduled for next month.