Sunday, June 13, 2010
Steaming Hot Geothermal Stocks
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'.
One big advantage of geothermal over the solar and wind industries, is that geothermal energy doesn't rely much on government subsidies or tax credits. In addition, geothermal plants run 24/7, all day and all night, whether the sun is shining or not and whether the wind is blowing or not.
Ormat Technologies Inc. (ORA) a 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 forward P/E is 23, the PEG is 2.15, and the yield is 0.7%.
Calpine Corporation (CPN) was originally founded in 1984. This Houston, Texas based company provides electricity in the United States and Canada through the ownership and operation of its own power generation plants, through geothermal and natural gas. The company went through bankruptcy and came out of it, now traded back on the New York Stock Exchange. The stock has a forward PE of 33.5 with a PEG ratio of 4.13.
Nevada Geothermal Power, Inc. (NGLPF.OB) is a company that explores for and develops geothermal projects in the United States to provide electrical power. They own a 100% leasehold interest in the Blue Mountain, Pumpernickel, Black Warrior projects in Nevada and the Crump Geyser Project in southern Oregon.
Raser Technologies (RZ) which is a Utah based company that trades on the New York Stock Exchange, and founded in 2003, is an environmental energy technology company, which develops geothermal power. The company has a portfolio of geothermal interests in Utah, Nevada, New Mexico, Oregon and Indonesia which generates seven megawatts of power. The company recently generated negative earnings.
Sierra Geothermal Power Corp (SRAGF.PK) is a developer of renewable power from geothermal sources. They have investments in 15 geothermal projects located in Nevada and California. This is a very low cap stock and should be considered very speculative.
US Geothermal Inc. (HTM) which is a Boise based company, founded in 2002, is involved in the development of geothermal energy power plants in the Raft River area of Idaho, the Neal Hot Springs area located in eastern Oregon, and interests in an operating geothermal power plant and geothermal energy leases in Nevada. Earnings for the latest reported quarter were negative.
Constellation Energy Group (CEG) is an electrical generating company that 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 forward P/E is 10.3 and the PEG is 1.1. The company pays a yield of 2.7%. Geothermal is a very small part of the company's business.
IdaCorp, Inc. (IDA) is a holding company which 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 forward P/E is 11.4 and the PEG is 2.68. The stock yields 3.7%. Geothermal is a very small part of the company's business.
PG&E Corp. (PCG) is a California-based electric and gas utility that 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 11 and the PEG is 1.76. The stock yields 4.4%. Geothermal is a very small part of the company's business.
For a list of electric utilities, natural gas utilities, or water utilities, go to WallSteetNewsNetwork.com.
Author does not own any of the above.