Raser Technologies: The Long Case

Raser Technologies (RZ) has been the topic of much discussion over the last few months. With roughly 4 million shares sold short and a relatively thin trading volume profile, much emotion and misinformation has dominated the online forums. This essay seeks to present the facts in an unbiased fashion so that investors may make an informed decision on the shares. Further, this author seeks to present all the facts, versus a partial and incomplete analysis as others have presented.

It is this author's viewpoint however, that most rational and well-informed investors will conclude that the stock presents an excellent investment opportunity. In the name of full-disclosure, readers should know that Abraham Gaines is the pen name of the author, who is an institutional investor and owns shares of Raser.

Readers should understand that this essay assumes some understanding of the Raser business and geothermal energy production in general. Readers wishing to learn more about either of these can read previous posts by this author under the ticker RZ.

Brief Profile

Ticker: RZ

Market Capitalization: roughly $500 million

Daily Trading Volume: roughly 120,000 shares

Short Interest: roughly 4 million shares

Recent price high: $18 – achieved mid-January 2008.

Current price: $7.65

Company description: Raser is a development stage company which produces and sells steam-based energy made from hot water found beneath the earth's surface. This is called Geothermal electrical production and has been well-studied, documented, and explored for decades. Raser intends to use its proprietary motor technology called Symmetron to make its geothermal power plants meaningfully more efficient than its competitors' plants and will leverage its well-documented relationship with the United Technology Corporation (UTX) to mass-produce the equipment necessary to convert this hot water into electricity. The company has secured drilling and surface rights to several properties (hundreds of thousands of acres) that are known to have hot water reserves (KGAs – "known geothermal areas").

To date, the company has not produced any revenues and has substantial accumulated losses. In this author's opinion, this has been the topic of most short-related essays and is not an appropriate way to evaluate a development-stage company like Raser. As an example, would an astute investor evaluate a pre-revenue biotech company on the basis of its balance sheet and history of accumulated losses? Likely not – an informed investor would realize that the value of a stock is based on the discounted FUTURE value of the company's cash flows and that a development stage company should be evaluated based upon its intellectual property, business model, and verifiable FORWARD-looking statements of fact.

Rather than rehash the issues that short-biased investors have with Raser's balance sheet and history of losses (an article detailing this was published in this forum only last week and can also be found on the website of the 10-Q detective), this essay seeks to point out the current and forward-looking facts juxtaposed alongside the short arguments.

Short argument: The company has no revenue

Fact-based response: True. The company did however, just announce on March 18th 2008 their first power-purchase agreement with the City of Anaheim. In the power industry, a power-purchase agreement is the same as a revenue-producing contract. In a worst-case scenario where Raser could not produce electricity themselves, they would procure the electricity and sell it to Anaheim. Either way, this will represent revenue to Raser.

Short argument: The company has no hot water – how will they make electricity?

Fact-based response: Not true at all. See the linked pdf file which is a description of the hot water found at the Lightningdock Geothermal site. Raser recently purchased this piece of land – it already has a production well where temperatures and flow rates are sufficient to generate commercial-grade power. Further, see the company's press release from Feb 27 indicating hot water in one of their other wells in Utah. Informed investors will further realize that the company's business strategy is to acquire previously explored properties that are known to contain hot water flowing at appropriate rates to generate commercial-grade electricity. While the first well they drilled in Nevada has yet to be certified as containing water with acceptable flow rates and temperatures, the company's portfolio approach to drilling and land acquisition mitigates this risk. Plants are constructed of modular equipment which is not customized to any site and can be easily moved to the most relevant well as needed.

Short argument: the production tax credit (or PTC) is set to expire on December 31, 2008 and if it is not renewed, would be a substantial negative to Raser's 'tax equity monetization' method.

Fact-based response: Raser has been successful in negotiating "escalators" into their PPAs which protect them in the event the PTC is not extended. Said differently, PPAs now include 'step-ups' in the price of power if the PTC is not extended. By doing this Raser not only insulates themselves from any negative impact of a non-extended PTC, but they also have made the utilities additional 'lobbyists' in favor of extending the PTC.

Short argument: They burn $12-14 million per quarter and don't have a balance sheet capable of absorbing those losses.

Fact-based response: If taken on the surface, this is true – however doing so would be an incomplete analysis and would lead to an incorrect conclusion. While the company's cash burn to-date has been $12-14 million per quarter, much of that represents drilling costs which ultimately get reimbursed by their financing partner, Merrill Lynch. This brings the "true" cash burn after consideration of these items which will be reimbursed, down to $12-14 million PER YEAR.

Note that the company recently raised $50 million through a convertible bond offering led by Merrill Lynch to help fund these drilling costs.

Short argument: the company will burn through these funds and be out of business in a year.

Fact-based response: The company has indicated that they have 7 geothermal projects in production right now (representing 70-75mhw of production) and that they expect to have at least one producing revenue towards the end of the third calendar quarter of 2008. They expect to have several more in operation by the end of 2008. Each 10 mhw project generates roughly $4 million in revenue to Raser (on a non-GAAP basis) in the first year. If only 4 of the 7 go into service by the end of 2008 and Raser doesn't get anything else into service ever, the company will generate $16 million in revenue in 2009 and will be break-even at worst.

If they get all 7 into production, and don't do anything else, they would produce $28 million in revenue (non-GAAP) and $15 million in EBITDA/net income. With almost 60 million shares outstanding, that would be $0.25 in EPS.

Short argument: who cares about non-GAAP? Only companies with something to hide do this.

Fact-based response: The reason one must distinguish between GAAP and non-GAAP numbers in this instance is that all of the projects will reside off-balance-sheet. They will require some level of consolidation and would mean that both revenues and costs would seem higher (profits would be the exact same). By distinguishing between GAAP and non-GAAP, one can truly analyze the pure income statement impact that each project will have and the leverage it indicate as operating margins expand.

Short argument: the Merrill Lynch financing deal is not real but rather a proposal

Fact-based response: rather than shooting from the hip, an informed and educated investor will read the entire 8K in which the details of the agreement are spelled out. This is a very legitimate deal and represents over $600 million in committed financing over 48 months.

Short argument: the Symmetron business is bogus and will never be worth anything.

Fact-based response: the company does have a long and storied history (under prior management) of making promises related to this business that they were never able to fulfill. However, an examination of the 8K with Merrill Lynch shows a 7% royalty being paid to Raser so that UTX can use this motor in the pumps which go on their pure-cycle machines. Further, a recent agreement with Hyundai lends further credibility to the partnership as Hyundai will likely be the manufacturing partner – relieving Raser of this burden. Note that by using the Symmetron motor to reduce the parasitic load in each of the motors used in a power plant, Raser (through UTX) will be able to produce more net electricity than any competitor would on the same resource.

Short argument: why would the company require $50 million from a convert if the Merrill agreement were real?

Fact-based response: the two financing agreements fund different entities. The money from Merrill will go directly into each geothermal project (known as "the llc") after such time as Raser has met the conditions sufficient to close on each of them (namely, proving the resource and getting a PPA). The money from the convert will go to the Raser corporate entity and will fund the drilling costs which the LLC will repay.

The conclusion of all these facts is this: The company is now in the process of moving from development-stage to commercial-stage. They have signed their first revenue-generating contract and will soon allow investors to evaluate them based on the merits (or lack thereof) of their income statement and cash flow statements. The Merrill Lynch financing package is worth reading (in this author's opinion) and should shed some light on how serious Merrill is in funding the construction of these plants.

The company has indicated their intention to initiate the production of 100 mhw per year for the first three years (they are approaching the end of year 1) and then 150 mhw per year thereafter. While that would indicate 1,350 mhw placed in service over 10 years, let's assume they are only half right, and can only get 675 mhw into service over that time. At a net present value of $300 million per 100 mhw (simple math based upon the figures RZ provided in the 8K and using a 12% discount), that would indicate that the simple sum of the present values is worth $1.091 billion – more than a double in the stock price from here.

Disclosure: Long RZ

Comments

[peytopolo:]

I believe this to be a well balanced and accurate projection. I do believe it left out a number of additional potentials in Raser's business plan.

2008 Mar 24 12:40 PM

[subuclayton:]

Simply put, the burden of proof and credibility rests with the company.
RZ will be dead money until somebody actually buys their product. I am long, but realistic.

2008 Mar 24 07:07 PM

[alphaMS:]

This is quite possibly one of the worst articles I have read. You are clearly violating seekingalpha’s online rules of conduct. How could someone who is supposedly an institutional investor write this garbage? You begin by saying there is a lot of <b>misinformatio... dominating the online forums, yet your “essay is wrought with misinformation. Let’s start with daily trading volume; 120,000 shares? Hardly, it is about 3X that. While this average daily volume error is miniscule, it shows your lack of attention to facts. Your first sentence; “Raser is a development stage company which produces and <b>sells steam-based energy</B> made from hot water found beneath the earth's surface.”

Raser has not produced nor sold any energy. You know or should know that. To say they sell steam based energy is blatantly false.

Several sentences later you mention they have produced no revenue. This is poorly written and misleading. The fist sentence of your second paragraph completely contradicts your first sentence in the essay.

Many of the arguments you present to the short side have never been brought up. You presuppose softball arguments that do not exist so you can support your case for the long side.

As an example:
Where on earth did you come up with a short argument that the company burns $12-$14 million per quarter? I like to see just one online discussion forum topic where that was brought up.
You then go on to say the cash burn number is correct. Are you capable of even the most basic understanding of financial statements? How, as an institutional investor can you come up with such inaccurate information?

The rest of your “essay” is as poor and inaccurate as the few items I mentioned. If you are an institutional investor you should post which institution, as I am sure any informed investor would want to pull their funds from your institution.

I have posted below a copy of the posting rules of conduct.
You agree not to:
<i>Post any comment that you either know or should know is false, deceptive or misleading, or misrepresent or deceive others as to the source, accuracy, integrity or completeness of any comment you post.</i>

If you are an institutional investor, you know or should know that cash burn is not $12-$14 million per quarter.

2008 Mar 25 01:07 PM

[Abraham Gaines:]

Dear AlphaMS,
Thank you for your posts. I will address each of your concerns in order.
1) average daily trading volume - this was an approximation and meant to signal a rough range. Further as you well know, one can look at this over various time-periods. For example, from the period 1/3/06 until the present time, the average trading volume is actually 139,000. If you look at 1/3/07 until the present, the figure is 213k. I wasn't trying to misrepresent the actual trading volume - rather, for an institutional investor - one who tends to purchase in denominations of 50-100k shares, this was meant to represent a range. As institutions, we look at the trading volume and say to ourselves, "I want to make this position x% of my fund - how many days of volume will I represent." By stating "approximately 120k", that would give an investor a rough sense. I sincerely apologize if this item distorted your perception of the article or of my knowledge of the subject matter.
2) Regarding the language I used to describe their business model. You are accurate and the wording should have been "Raser is a development-stage company which seeks to sell steam-based electricity." My tenses were incorrect (by using "sells" instead of "seeks to sell." However, with the signing of the recent power purcahse agreement with the City of Anaheim, they will be selling steam-based energy imminently. I will be glad to use the proper grammar/tense in the future. Please understand, I did not mean to be misleading in that choice of words - most readers would understand that the business description wasn't meant at all to be misleading particularly when I then comment that they have "no" revenue.
3) your point about claiming they have "no" revenue is also accurate - it is a number greater than zero, and therefore my use of the word "no" was misleading. However, my point (similar to the share volume comment) was meant to be directional. Last quarter, the company reported $320,000 of revenue. In the institutional world of money management - particularly for a devopment-stage company, this is effectively zero. While $320k is $320k and it's not "literally" zero, it is close enough to demonstrate the point, which is that to date, the company has effectively generated no revenue from their primary business activities. Biotech companies which receive small sums to fund r&d and call that revenue are still considered to be "pre-revenue" even though they may actually report a modest sum. Once again, please accept my most sincere apologies for not using terms which you find appropriately accurate.
4) Regarding your cash burn discussion, I will unfortunately have to disagree with you. I will admit, that by simply reading the 10Q, some investors wouldn't conclude that the cash burn was as large as I state. However, if you dig through it and start with net income, then remove the cash generated from the warrant/stock and option issuance ($3.8m) as well as the monies spent on wellfield development and power project development deposits ($2.5m and $3.7m, respectively), you get into the range I indicated. An astute investor will further realize that the drilling costs ultimately get reimbursed by the LLC, and so my discussion of the forward-facing cash "burn" would simply be the operating costs, which average approximately $1m per month - I was being generous in suggesting they could get as high as $14m per year.
In summary, some of your points are valid, although only on the semantics. If you wish to debate the merits of the company's business model or any of their claims, I would invite you to lay out your points in a concise and professional manner. I would be happy to address them again - point by point and will make sure to use tenses and grammar which are appropriate. You were comfortable telling me that my essay was a work of fiction - please provide your counter points - raise as many questions as you wish, and I will address them in this very public forum immediately. Good luck.

2008 Mar 25 01:56 PM

[StateofConf...:]

This is an excellant article (even with some small factual errors like volume) and Raser will be an excellant company. It has high efficiency motors for use in both industrial applications and hybrid cars. Efficiency is becoming the mantra of new design. As a former engineer at Dell, it certainly became the guiding principle for our work.

Geothermal energy is a great renewable source and Raser has made all the right moves to bring it into production.
The author does state that Raser has not yet started electric production and this is known as they are building the plants now. I believe this is an excellant investment that should be held for long term gain. I am long in this stock.

2008 Mar 25 01:58 PM

[alphaMS:]

In response to Abraham Gaines,

Here is your comment on cash burn:

Short argument: They burn $12-14 million per quarter and don't have a balance sheet capable of absorbing those losses.

Fact-based response: If taken on the surface, this is true – however doing so would be an incomplete analysis and would lead to an incorrect conclusion. While the company's cash burn to-date has been $12-14 million per quarter, ....

My point is ---cash burn has never been $12-$14 per quarter. No one has presented an argument that cash burn is $12-$14/quarter.

I challenged you to show where someone said it was that number (which you didn't) and I then challenged why you would say, ..."If taken on the surface, this is true"


I never argued what cash-burn actually is--so please don't reiterate your number.

2008 Mar 25 03:11 PM

[alphaMS:]

For Abraham: You wrote
<<<1) average daily trading volume - this was an approximation and meant to signal a rough range. Further as you well know, one can look at this over various time-periods. For example, from the period 1/3/06 until the present time, the average trading volume is actually 139,000. If you look at 1/3/07 until the present, the figure is 213k. I wasn't trying to misrepresent the actual trading volume - rather, for an institutional investor - one who tends to purchase in denominations of 50-100k shares, this was meant to represent a range. As institutions, we look at the trading volume and say to ourselves, "I want to make this position x% of my fund - how many days of volume will I represent." By stating "approximately 120k", that would give an investor a rough sense.>>>

I would argue an informed investor would not look back to 2006 to calculate avg volume. Volume in 2006 has little if any significance to todays trading. That said, avg volume according you since Jan 3 07 is 213 K

Yahoo shows avg for 3 months at 304K
Marketwatch shows avg volume at 308K


Where do you get your data to support 213K

2008 Mar 25 05:43 PM

[razormd:]

Although the potential for electric generation is pretty interesting, the potential for Raser to accomplish anything is probably ZERO ...RZ would have you believe that the temperature of the well is the most important detail and they emphasize the purecycle plant's ability to use a lower temperature source...however, read about the Chena Hot Springs plant -- the ONLY purecycle plant currently in operation -- and discover other important facts...FIRST, while hot well temperature is important, also very, VERY important is a cold source -- the efficiency of the purecycle plant DEPENDS on this...in Chena, they use cold air during the winter; during the summer, they DEPEND upon water pumped from a nearby deep well...what is RZ planning to use for a cold source?...cold air in the desert???...doubtful..... cold water well?...presumably -- IF there are any in the desert...SECOND, there has to be a reinjection site for cooled water coming from the plant...that site has to be far enough away from the hot water well that it doesn't cause cooling of the source and far enough from the cold well that it doesn't cause heating of the cold source...Chena had to move their first reinjection site after it caused dilution of the heat source...THIRD, there has to be a place to pump the heated water originally from the cold source...in Chena, they just pump it into a nearby creek...of course, Chena has only TWO purecycle pumps...RZ claims they will have FORTY FIVE pumps at work...what will RZ do with all that water?...dumping it on the ground in the desert seems rather wasteful...FINALLY, it's important to know the fluctuation of the water table through the year -- hitting water in January doesn't mean it's still going to be there in July...also, those forty five pumps sucking water out 24 hours a day from the cold source could significantly affect the water table -- particularly in the desert...now, all of this would be important to RZ and, presumably, would be issues addressed in their press releases...the fact that they don't address those issues leads me to believe they don't really ever plan on ACTUALLY operating geothermal plants to generate electricity...like the infamous "symetron" motor, geothermal is nothing more than a "gimmick" to lure naieve investors into the trap that constitutes the company's true source of income -- selling stock!...the fact is that management didn't even know geothermal existed until a year ago when apparently one of them saw something about tax credits and recognized it as something they could package into an idea they could sell...but I have no doubt geothermal will go the route of the symetron powered snowmobiles, symetron powered Humvees, symetron, and that symetron powered race car they were supposed to have produced a couple of years ago...and I wonder what the next gimmick will be -- a "cold fusion" machine?

2008 Mar 26 09:08 AM

[alphaMS:]

Response to razormd;

Actually raser was familiar with geothermal going back to 2004 when they begin their bid for Amp resources. They would have been aware of geothermal since at least the time BC came on board, as he as a past employee of Amp.

The cold water temp for the Chena geothermal plant is 39 degrees, it comes from glacier run off. Water temp that cold will be tough to find in Nevada.

2008 Mar 26 12:06 PM

[alphaMS:]

response to Abraham:

Ok, one more for us to discuss, you said:

<<<Short argument: The company has no hot water – how will they make electricity?>>&g...

i don't think anyone has said raser has no hot water. It is pretty evident that there is a ample hot water in Nevada, Utah and other KGRA's. I'm not sure why you would even throw that out as a short argument--other than to try and paint the short arguments as baseless.
If their is a related short argument it would be that raser has not given quantifiable results such, as temp, flow, and pressure. and time. Nor has raser addressed the issue of cold water, as another contributer point out, cold water is also needed.

Hot water isn't enough. If it was, you would see UTCP Purecycle geothermal units being implemented in a number of locations

2008 Mar 26 03:43 PM

[razormd:]

Actually, the Amp purchase was announced in January, 2006:

www.rasertech.com/news...

...prior to that there was mention of Amp or geothermal anywhere I
could find...and that deal was highly suspect given that Brent Cook was
Raser's CEO and ALSO was a 2% partner in Amp at the time of the deal:

www.secinfo.com/d2U1m....

...and this was made even more suspect when Amp ended up being sold to
Enel for 70 million -- far less than the 260 million the RZ deal was
going to cost:

www.reuters.com/articl...

www.altenergystocks.co...

....with regards to Chena, indeed the cold water source is quite cold
and Chena DEPENDS on that for function of the purecycle plants through
the Alaska summer...but that's also why the ONLY purecycle geothermal
plant in the world is located in Alaska...for nine months they can use
cold AIR...and two pumps operating for just three months doesn't pose
much environmental risk nor much risk to the water table...and remember
that it's the DIFFERENCE in temperature between the hot source and the
cold source that determines the efficiency of the purecycle plant...there
isn't much cold air in the southwestern desert and I question whether
RZ be able to find a cold source sufficient to operate the purecycle
plants...nothing RZ has published indicates RZ has any interest in these
details...and I believe the reason is that they don't care because they
don't intend to ever actually operate geothermal plants...it's just an
"idea" to pitch to suckers.

2008 Mar 26 05:00 PM

[razormd:]

Addendum to prior post...should say there was NO mention of Amp or geothermal prior to january of 2006...also apologies for odd appearance of the post -- my JAVA appears to be acting up today.

2008 Mar 26 05:05 PM

[Abraham Gaines:]

Gentlemen,
Your point regarding cool water is relevant and important.
Usually, the cool water is used to cool down the refrigerant - that is the butane or the isobutane - that is the secondary fluid which turns into a gas and then moves the turbines.
In areas in which there are cold water resources, the operator of the plant can obviously use this water to cool his refrigerant.
However, as you properly point out, in the desert this can be somewhat more difficult. However, this is not a new issue and certainly is not unique to Raser.
If you were to vist an Ormat plant for example, you'd see huge cooling towers - these are usually air-cooled towers with large fans. Take a look here (www.ormat.com/projects...) you'll see the towers for yourself.
Another way to cool the refrigerant would be to bleed off some of the brine (that's the salty water pulled from the earth) and create what's called a "cooling tower." In a cooling tower, the water is dripped down, fans blow on it, and the evaporation causes the water to cool. This enables cool water to then chill down the refrigerant.
One other thing to note is that when Raser negotiates land deals with folks who have hot water in the ground, they usually (and this is typical) also negotiate rights to the surface water as well - this surface water is typically cool enough to chill down the refrigerant.
You are correct however, in pointing out that because of these obvious thermodynamic items, the plant can produce more electricity in the cooler months than in the summer months.
Chena is a unique example - they do have very cold water which allows them to really chill down the refrigerant. That helps make up for otherwise relatively weak pressure/flow.
I wouldn't claim to be a geologist - so you will have to wait to see what the independent geologists say about the pressure and flow in Raser's wells, but you can read a current geological survey which was written about one of Raser's properties - it's called Lighting Dock - and the report is right here (geoheat.oit.edu/bullet...). This will give you all the pressure, temperature and flow information you'd possibly want.
It will also explain how reinjection wells work. See the thing is, you're not actually chilling the water - you're only chilling the secondary fluid. Sure, this removes some of the heat from the hot water, but it's not enough (if your geologist places the reinjection well in the right spot - typically down the hill) to muck up your hot water source. Again, I'm not a geologist, but folks sometimes reinject at different depths - if they were to reinject cooler water right into the same body of hot water, it'd be like (pardon the vulgarity) pis*ing into the wind. Geologists are usually smart enough to do that - Ormat sure figured that out.
Also, the temperature of the water below the surface is not affected by the ambient temperature - so winter/summer - does not matter.
On the topic of volume....I use a system called Bloomberg. It's typically what most professional investors use. It allows us to examine volume on any particular series of days - we can adjust the start and end dates....pretty easy stuff. I don't really know how Yahoo works...sorry.
Last item - you pointed out that "nowhere does it say that Raser burns that much money." You're right. However, an astute investor who actually reads the cash flow statement will subtract the "one time items" which helped to inflate the cash flow (like exercise of warrants - see that brings cash into Raser) and would conclude that on a pure operating basis INCLUSIVE of the wellfield development, they were burning that much. I apologize if that wasn't entirely apparent, but you'd have to actually parse through the cash flow statement to know it. I'm sorry if I gave folks the credit they didn't actually deserve by assuming they did that.
I hope that answers all of your questions. Once again, please feel free to toss all your "beefs" my way - I'd be happy to answer them. sorry if it sometimes takes me a little while to reply - I actually do have a job :)
Fondly,
Abe

2008 Mar 26 05:15 PM

[razormd:]

Quoting from the Lightning Dock link you provided:

"In 1995, three binary power generators were moved
in from Lakeview, Oregon – a 350 kW unit and two 400-kW
units of ORMAT/SPS design (Photo 3). They were run for
two session of approximately eight months each, but cooling
water and the design of the heat exchangers/evaporators
became a problem, thus the generators have been shut down.
Mr. Burgett is attempting to acquire a cooling tower, as the
spray operated cooling ponds are not adequate."

...ultimately, Mr. Burgett ended up just using geothermal to heat his greenhouses...I have to presume cooling towers never worked out since, as of 2006, the power plants are still offline:

www.geo-energy.org/pub...

...hence the importance of cooling: the refrigerant MUST be cooled so that it recondenses back to liquid for recirculation...since the purecycle necessarily uses a low boiling point refrigerant it's going to require significant cooling to transform it back into a liquid...cooling from 200 plus degrees backt to 165 degrees in 112-115 degree desert heat poses quite a challenge...has RZ discovered some new cooling method that they're keeping secret?...I doubt it...and note:

"Chena has been working on characterizing its wells for nearly 2-1/2 years, largely in
anticipation of minimizing the stresses placed on the reservoir due to increased production
necessitated by the power generation project. Initial injection well candidates were chosen
primarily due to their distance from the proposed production area and the natural hot springs.
However, additional testing showed that while these wells are unequivocally linked to the
geothermal system/reservoir, they have low injectivity indexes which make them poor candidates
for injection of any substantial volume of fluid under the low wellhead pressures planned."

...from:

www.yourownpower.com/P...

...TWO and a HALF YEARS to find injection wells...that's just for TWO purecycle plants...and they had to move the first one after a couple of years because it started to affect the geothermal source...RZ claims to be aiming for FORTY FIVE plants yet have given no indication that they are even aware of the need for injection drilling...again, that's just an irrekevant detail to them since they're not really planning on ever selling electricity -- only stock...and they don't need no stinkin' injection wells to sell stock!

2008 Mar 26 06:38 PM

[razormd:]

Addendum...you brought up Ormat...isn't it interesting that Ormat paid 400-600 dollars an acre for the leases it acquired at the last auction...RZ, on the other hand, paid only FORTY bucks an acre...now did Ormat, with its 30-40 years of experience in geothermal, get suckered?...or did RZ, with its less than 2 years experience, get its money's worth?

2008 Mar 26 06:50 PM

[alphaMS:]

Abe buddy, you are digging a hole.

There is now way you can reconstruct the cash flow statement and come up with cash burn of $24 million/quarter. I really don't know who you are trying to sham on that. Despite your claim to be a professional, your not. It is apparent to all that you are not. That was a nice ploy though to use the condescending tone and say it is apparent to the informed investor. Bottom line--you are wrong.
But hey, walk me through it, line item by line item. There isn't that much there, it can easily be done.

I checked Bloomberg there volume coincides with the two sources I quoted.

finance.yahoo.com/q?s=...

www.marketwatch.com/qu...

www.bloomberg.com/apps...

Bloomberg doesn't show avg volume, however you can check volume for any day via the chart feature and it will match the other two sources.

Don't even try to go down that road that you have the "true institutional volume" that argument will not fly.

My beef with you is you post things that are just flat out not true.

Why?

2008 Mar 26 07:14 PM

[alphaMS:]

My previous post showed:

<<<There is now way you can reconstruct the cash flow statement and come up with cash burn of $24 million/quarter.>&g...

It should have read $14 million/quarter.

I am sure no one believes Abe's bogus claim of $14 million cash burn per quarter. If you have any doubt about it call Raser and they will confirm without a doubt that past cash burn is nowhere near that

2008 Mar 27 09:52 AM

[razormd:]

Mr. Pluvia seems to think cooling towers in the middle of the desert will solve the problem...I provided a link in a previous post to the Lightning Dock site where apparently towers either didn't work or perhaps weren't cost effective...but you can also check:

www.energy.wsu.edu/doc...

...this talks about the difficulties of cooling at Empire Energy in Nevada...they managed to solve it with construction of cooling towers...but look at the photo provided of those things...how much did it cost to build those?...how much does it cost to run and maintain them?...I have to believe there is a significant amount of change tied up there -- perhaps as much as the geothermal pumps themselves.
...and, in case you don't understand, source water HAS to be pumped back into the ground once the heat is removed in order to not deplete the water table and WHERE that is done is very important...see the Empire link again -- they had to do more drilling to find adequately spaced reinjection sites that wouldn't affect the heat source.

2008 Apr 03 11:20 AM

[yseclov:]

The worse the energy crisis gets the more the world need Razer

2008 Apr 13 03:58 AM

[Whitman:]

Raser’s shares are currently trading at $10.29, +/- 25% off its yearly high. The company is scheduled to present at Jesup & Lamont’s Small & Midcap Conference in NY on May 15.

We have been and remain bullish on the geothermal sector, as it is one of the few alternative energy resources that provide the opportunity to scale to a level on a global scale that can realistically enable a meaningful move away from brown energy. Geothermal energy is the earth’s own heat, captured and used to turn water into steam for powering clean-running electrical generation facilities.

We have reported previously on Raser, find quite a bit compelling about it.



Editor
smallcappulse.com

2008 May 03 10:47 AM