Raser, a Play in Geothermal Juice
Investment opportunities in renewable energy abound, but one that is still getting scant attention is geothermal energy, the kind that produces heat from under the ground. Adam Adelman, an energy analyst at Capstone Investments, laments that "geothermal has not gotten the press it deserves." On a cost basis, he says, geothermal is a preferred alternative energy source for electric utilities.
One pure play in geothermal is Big Board-listed Raser Technologies (RZ), which Adelman rates a buy. (Capstone expects to do business with the company.) Two months ago, Raser opened a geothermal plant in Utah, which is already selling electricity to Anaheim, Calif. Raser will soon complete construction of another plant in New Mexico, which expects to supply electricity to Phoenix. Raser's stock, now at 3.45 a share, is worth 7, Adelman figures.
Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.
—Gene Marcial
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