Geothermal Companies Receive Cost Sharing Grants from DOE

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Tom Konrad CFA

My entire portfolio of Geothermal companies received DOE cost-sharing grants Friday.  Here’s a quick run-down:

Market Reaction

While the geothermal exploration companies (NGP, HTM, and SRA) were all up today, Ormat and the geothermal heat pump stocks were down (ORA -1.23%, WFI.TO -1.12%, and LXU -2.67%, on a day the S&P 500 fell 2.81%)  Ormat was probably down in sympathy with the market because it is much larger than the other companies listed, and these grants won’t make that much difference to its bottom line.  Waterfurnace and LSU may have gotten less market benefit since the grants were not directly to them, and money for geothermal heat pumps was already expected to be part of these grants.

Practically the only (nearly) pure-play geothermal company that didn’t get something was Raser Technologies (RZ), which I told readers I sold in September when the DOE announced they were no longer under consideration. I sold Raser at $1.78, taking a small (11%) loss.  It closed Friday at $1.18. I’m glad I got out when I did, although readers of the article who sold on my recommendation will have done better than I.  Raser bumped around in the $1.80-85 range for a couple weeks after I published my article, and even hit $2 briefly.


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