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Genie Energy: As Successful As Its Parent, IDT?

Jul. 22, 2016 9:19 AM ETGenie Energy Ltd. (GNE)IDT9 Comments


  • GNE is a small, diversified energy company focusing on Israel's huge "Black Gold"Potential.
  • GNE is an IDT offspring with the same Howard Jonas at the helm.
  • GNE may well be worth the risk at current valuation.

Genie Energy LTD (NYSE:GNE) was spun out of one of my favorite (and previously covered) companies, IDT Corp., in 2011. One of my criteria in seeking the great companies of the future continues to be their management. With GNE, we once again get Howard Jonas, its Chairman and CEO, who created substantial wealth for IDT shareholders over the years. The question is whether he can do it again. Given where GNE is today and what its strategies are, my answer is a resounding "yes". However, for anyone who is thinking about a short flip, this is not the place to be.

Company Description

GNE through its subsidiaries operates as a retail energy provider and a developer of two oil and gas exploration companies. The company operates through three segments: Genie Retail Energy, Afek Oil and Gas, and Genie Oil and Gas. It resells electricity and natural gas to residential and small business customers primarily in the Mid-Atlantic and Midwestern United States. The company also has a 86.5% interest in the exploration project in the southern portion of the Golan Heights in Northern Israel; has an 86.4 interest in an oil shale exploration project in Central Mongolia, as well as an 86.1% interest in an oil shale development project in Israel. [via Yahoo Finance]


This under-followed, undiscovered, Newark, N.J.-based, $166 million micro-cap has several exciting ventures that may prove rewarding for the patient investor. First, GNE Retail Energy, founded in 2004, is one of the largest independent residential energy providers (REPs) in the eastern United States. GNE Retail Energy currently serves 394,000 customers, of which 267,000 are electric meters and 126,000 gas meters. Future growth will focus both on geographic expansion and penetration of existing markets. Under this structure, customers benefit from possible savings on their utility bills, while the Utility Company purchases the receivables and generates revenues from consolidated billing while the REP takes the

This article was written by

2006-Current-Managing Partner, Ascential Equity LLC, Richmond, VA. Investment Services focusing on Community Bank; mezzanine financing; and commercial leasing. 1982-2006-Director of Cash Management and Investments-Treasurer of Virginia. Responsible for oversight of $15 billion fixed income portfolio, cash management and banking services. 1974-1982-Investment Administrator, Bureau of Naval Personnel 1967-1974-Silberberg, Rosenthal and Co 1964-1967-Goldman, Sachs and Co MBA Finance, St.Johns University, Jamaica, NY BBA Finance, Pace University, NYC CFA #006270 Adjunct Professor of Finance, Virginia Commonwealth University, 1995-current. Chairman, City of Richmond Retirement System Board of Trustees and IAC 1990-March 2016. Chairman, Virginia College Savings Plan IAC 1996-2011.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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