Tuesday, July 10, 2007

Geothermal Stocks: Some have been Steaming Hot

One of the alternative energy industries that hasn't received much press coverage is the geothermal group of stocks. Geothermal generation utilizes natural underground heat sources that powers a turbine which turns a generator. The word 'geothermal' comes from the Greek words 'geo', which means 'earth', and 'therme', which means 'heat'. As it turns out, several of these geothermal stocks have been steaming in terms of stock price.

Calpine Corporation (CPNLQ.PK) Founded in 1984, this San Jose based company provides electricity in the United States and Canada through the ownership and operation of its own power generation plants. They own 19 geothermal power plants at The Geysers in California. Earnings have been negative but revenues were up about 27% for the latest quarter.

Constellation Energy Group (CEG). This 1906 electrical generating company owns and operates generating plants and fuel processing facilities utilizing various types of fuel including nuclear, coal, natural gas, oil, solar, geothermal, hydro and biomass. The P/E is 15.8 and the PEG is 1.43. Yield is 2%.

IdaCorp, Inc. (IDA) This holding company owns Idaho Power Company, which is involved in the generation, transmission, distribution, and sale of electric energy primarily in southern Idaho and eastern Oregon. Their electrical generation comes from hydroelectric, natural gas, diesel, coal, and geothermal plants. The P/E is 12.6 and the PEG is 2.92. The stock yields 3.8%.

Nevada Geothermal Power, Inc. (NGLPF.OB) This company explores for and develops geothermal projects in the United States to provide electrical. They own a 100% leasehold interest in the Blue Mountain, Pumpernickel, Black Warrior projects in Nevada and the Crump Geyser Project in southern Oregon.

Ormat Technologies Inc. (ORA) This Nevada based company, which trades on the New York Stock Exchange, was founded in 1965. It owns and operates geothermal power plants, selling electricity in the United States, Guatemala, Kenya, Nicaragua, and the Philippines. They also provide products and services to other geothermal power generators. The P/E is 70.2, the PEG is 2.67, and the yield is 0.5%.

PG&E Corp. (PCG) This California-based electric and gas utility serves 5 million customers. Their electrical generation comes from natural gas, nuclear, hydro, coal, geothermal, wind, and several other types of renewable sources. The P/E is 15.6 and the PEG is 2.08. The stock yields 3.2%.

Polaris Geothermal (PGTHF.PK) The company is a developer of renewable energy in Latin America. They are currently developing a 66 MW geothermal project on its San Jacinto Tizate concession in Nicaragua.

Raser Technologies (RZ) This Utah based company trades on the New York Stock Exchange Arca exchange, and founded in 2003, develops high performance electric motor and controller technology. In addition, it has secured geothermal rights to certain Nevada properties owned by Truckee River Ranches, LLC, under the terms of a 50-year lease agreement. Earnings have been negative.

Sierra Geothermal Power Corp (SRAGF.PK) This is a developer of renewable power from geothermal sources. They have investments in 15 geothermal projects located in Nevada and California.

US Geothermal Inc. (UGTH.OB) This Boise based company, founded in 2002, is involved in the development of geothermal energy power plants in the Raft River area of Idaho. Earnings for the latest quarter were negative.

Western GeoPower Corp (WGPWF.PK) The company develops geothermal energy projects. They own the Unit 15 Steam Field located in The Geyser Geothermal Field in California and in the South Meager Geothermal Project in British Columbia, Canada.

WFI Industries (WFILF.PK) This Fort Wayne, Indiana company is development and manufacture of geothermal heating and cooling systems, for both residential and commercial customers. The P/E is 35.5.

Author does not own any of the above.

By Fred Fuld for Stockerblog.com.


Clare said...

Why are you recommending Calpine a stock that says on their web site that at the end of the Chapter 11 proceedings the value could be zero. Am I missing something?

Stockerblog said...

I'm not recommending Calpine. I never recommend any stocks; I just provide information about them.
Calpine's web site says "any remaining value after such allowed creditors' claims have been paid in full will be distributed pro rata to existing holders of allowed interests (primarily holders of existing Calpine common stock) and holders of subordinated equity securities claims in the form of reorganized Calpine common stock."

daniel said...

I wouldnt recommend any geothermal stocks either, i would only recommend researching information about investing in geothermal energy. The more research you do will ultimately lead you to your choice of stock. I recommend this report to continue your research...

Geothermal Energy Special Report