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Raser Technologies: The Ugly Duckling of Alternative Energy

Jacke H:

With the funding announced today and again on 12/14/08, RZ now has all the money it needs to complete 105 MGW in 09 and according to RZ will not need to go back to the street again.

BC at the announcement today said to expect 65 million in revenues in 09 which is a buck a share. Not bad.

in 2010, we can expect that to at least double. 2010 screams for net earnings per share w/o anything but geothermal.

RZ has so much more upside that ORA, there is not comparison.

RZ's battle with the shorts is now at its lowest. There will be no more shares added to the float. Shorts won't be able to find more shares. UBS is covering and Knight had to cover today after it learned no additional shares in the market despite its attempt to hit RZ hard at the open.

So what does this all mean?

2009 is a revenue year for RZ and it's no longer a concept company.

No more financial issues or plant issues. All management has to do is to execute and I believe RZ will.




On Nov 13 12:48 PM Jake Huneycutt wrote:

> Chris B,
>
> P/E ratios aren't always a great way to value a company and they
> are particularly bad for evaluation companies with high up-front
> costs. I'd argue you need to look at book value and cash flows and
> if Raser is successful on the geothermal front, it appears as if
> it would be a very great bargain even if they bring in half the cash
> flows they expect.
>
> My problem with ORA has been that their stock has looked significantly
> overvalued for a while. It's starting to look a little bit better
> now that it's dipped down into the mid- to upper- $20 range, but
> I still view it as a riskier investment than Raser due to the high
> built-in expectations (which apparently makes me a contrarian, but
> that's fine). Since there seems to be a large swath of investors
> who despise Raser based on their lack of success for their Transportation
> sector, it appears to me that their stock offers a much more attractive
> opportunity. Like I said in the article, even if their Symetron stuff
> fails, I'm not sure it matters so long as the geothermal segment
> succeeds given their current valuation.