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To: ~digs who wrote (461)10/14/2007 5:47:26 AM
From: bruwinRead Replies (2) | Respond to of 557
 
Yes, maybe geothermal energy stocks are currently "hot" (excuse the pun !)...

But don't we have, here, an individual company being bought just because of the attractiveness of its sector, with little, or no, regard for the actual financial performance of that individual company ?

If a sector is up, does that necessarily mean that virtually every company in that sector will be profitable and provide shareholder value ?
The fact of the mater is that UGTH is, and has been, losing money. To date, there doesn’t appear to be a reason, as displayed within its financial statements, to conclude that UGTH will reverse that trend, hence my previous reference to "speculation".

One also quite often sees the corollary of this when a sector may, generally, be down, yet an individual company within that sector is "steaming ahead", due to its stellar performance, which will be well reflected within its financial fundamentals.