Use access key #2 to skip to page content.
$8.59 0.55 (6.84%)
8/29/2008 4:00 PM

Raser Technologies, Inc. (RZ)

CAPS Rating:
*

The Company operates as a technology licensing and development company. Its segment focuses on improving efficiency and power density of electric motors, generators and their associated power electronic drives and controls.

View All Commentary (RZ)

Recs

1

Avatar agchris02 (93.82) Submitted: 7/17/08 3:27 PM : Underperform Start Price: $9.28 RZ Score: 10.04

As I watch this stock tick upward, I sit amazed. The company has lost money each year since 2004. It's quarterly income has declined for four straight quarters. Cash flow has steadily gone more and more negative, quarterly and over the past four years. The only thing keeping this company afloat is its asset base, which hasn't been properly adjusted for recent market trends. It's licensing is down, which will further decline its income. I see this stock cutting in half again within no time, if the company survives at all.

The one possibility in favor of this company is that they do have a plant coming online, which makes them a target for acquisition. That said, I'm comfortable betting that the stock will face a significant decline in the very near future.

Report this Post Replies: 1 | Reply

Avatar agchris02 (93.82) Submitted: 7/22/08 1:35 PM

Recs: 0 | Rec This

I still don't trust this company, too many years of bad performance, changing products, and all with zero success. That said, the ONE interesting tidbit is that it appears as if they have a plant almost ready to come online in New Mexico:

http://www.rasertech.com/news/scripts/full-news.php?1215006180

I will maintain my position that this company is on the fast-track to bankruptcy and its stock price is currently being artificially propped up by Merrill Lynch's $40m+ investment, of which all of the details remained largely undisclosed (giant warning flag to me).

HOWEVER, if this plant (1) comes online as scheduled, (2) works as promised (low temp geothermal energy production), (3) the continue to get energy contracts with various cities across the country (all over NW, and now in CA as well), and (4) the price of the units they are buying from United Technologies doesn't change....this may just end up as the greatest miscall of all time. I'm thinking of just closing the position, eating an huge loss, and waiting to see the results of the New Mexico project. If it takes off, Raser already has half a dozen more plants in the pipes. Which frightens me.

Can you possibly imagine a company that has successfully developed a geothermal plant, with an expected life of 35+ yrs without major repairs, that can be deployed and constructed in 8-12 MONTHS? Each one generating, depending on the geothermal area, 10-150MW? If Raser can really perform, and generate electricity on geothermal areas under 150 degrees....
Forget coal, forget nuclear power, forget wind, there would be a true paradigm shift in power generation.

That said, Im still not sold, which is why I refuse to buy this stock and, for at least a few more days, am maintaining my thumbs down.
(More investigation into UTX is currently happening to see about the viability of their products, and if they are selling their low temp generators to anyone other than Raser)

Report this Post Reply

Featured Broker Partners