Raser Technologies, Inc. (RZ)

ravenquork (< 20) Submitted: 12/24/07 5:49 PM : Start Price: $17.30 RZ Score: -37.18

Long term this is a good investment.
Geothermal:
1. The geothermal business will provide a steady and predictable income that will be favorably indexed to energy costs.
2. Tax incentives, although they may be fairly short term (5 or so years, maybe more)will provide additional cash flow for the well planned growth in this segment.
3. RZ is utilizing low grade heat sources that are easy to verify prior to construction and are plentiful and well known. RZ has huge chunks of previously surveyed properties. Many locations are near existing transmission lines to further reduce capital expenditures.
4. Their geothermal plants are modular. Fixed delivery times and costs provide good revenue visibility and require relatively small capital investments per unit.

Motors Generators:
HVAC
1. The technology has been proved in the lab and the field.
2. Even very small % efficiency improvements in the HVAC industry can produce large dollar savings for both the installed base and new construction market.
3. RZ's technology utilizes existing production techniques and facilities,and will be cost effective and very competitive for the foreseeable future.
AUTOMOTIVE
Alternators/Generators
1. Alternators already field proved and in limited production. Razor advantages include low cost production, higher power to weight and size than competitors.
Cars:
1. The automotive "green" industry may be (or not) slower to develop, and should be watched carefully. There is a limited pool of grade A potential partners, but RZ appears to have a competitive product. RZ products enjoy easy production ramps, fully scalable solutions, lower weight than rare earth motors, high low rpm torque, high efficiency, compact size. Only time will tell is this segment, but any significant announcements in this area would propel the stock higher.

All of the market segments represent very large markets and even small market penetrations represent huge growth opportunities for RZ.

In reply to some posts that quote various standard metrics to declare this stock a failure, prior to even getting rolling, I can only say- Surely you jest! A stocks value is based on future (or perceived future) performance, not a set of numbers that do not apply to the future.
IMHO, good management, good business plan, good technologies,good markets, good products, good short term visibility, good future.
A word of caution- This is not a stock your grandmother would have owned, so be prepared for high volatility and short term news driven swings.

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