Touch of Geothermal

Power Efficiency Guide

Ultimate Guide to Power Efficiency

Get Instant Access

With geothermal energy offering such significant potential for investors, there are also companies that aren ' t considered pure geothermal companies but have seen their stock price spike after investing in this sector. Take Raser Technologies (NYSE:RZ), for example.

Raser Technologies manufactures high-performance electric motor and controller technology for electric vehicles. This is what originally got us interested in this company, and ultimately one of the reasons we recommended it as an alternative transportation play. However, in January 2007, we got word that the company had decided to get into the geothermal game. A few days later, a press release appeared announcing that Raser Technologies had secured geothermal rights to a few properties in Nevada. A few months later, more properties were announced. Then a few weeks later, another property was announced. It became a trend. In fact, from late March through October 2007, Raser announced all of the following:

■ Five drilling targets in Nevada.

■ Two additional geothermal leases in Nevada.

■ A geothermal lease in Utah.

■ A series of agreements with United Technologies Corporation ' s UTC power unit, for UTC to provide 135 Pure Cycle geothermal power systems for three Raser power plants.

■ The securing of a project permit for the purpose of developing geother-mal well fields in Nevada.

■ A project alliance agreement with Cummins & Barnard to construct power plants.

■ The securing of an option to develop geothermal properties in California.

■ Three new drilling targets in Utah.

■ The securing of an additional 3,972 acres of geothermal rights in Utah.

■ The securing of yet another 11,294 acres of geothermal rights in Utah.

When we first jumped on Raser, back in November 2006, the stock was trading around $6.05 a share. But look at what happened to the stock, starting in January, after the company began its aggressive geothermal push. (See Figure 4.4 . ) Investors who picked up shares of Raser on our original recommendation picked up gains in excess of 200 percent in just over a year.

Was this article helpful?

0 0

Post a comment