The recent Global Geothermal presentation is a very interesting read and I've done a bit more poking around the Kalina cycle since. This stock offers exposure to market hot-spots such as the US geothermal industry and the Chinese waste heat/co-generation market. The former is starting to be seen as the future of power generation in the US, while the latter must be simply massive given the size of the manufacturing industry and the problems with electricity generation and pollution in that country.
The main problem with this stock is it presents very poorly with a range of interests in a hodge-podge of seemingly unrelated businesses. I'm not sure whether they are trying to be a diversified fund or their management has a short attention span, but its difficult for an investor to tell what they are buying into and what it will look like in a year's time. The market never reflects the theoretical valuation of groupings like this, especially where the companies they hold have negative cash-flow and ongoing funding requirements of their own. This situation can lead to the businesses that are hungriest for cash leading a parasitic existence at the expense of the others in the group that may have brighter prospects. Much better to let the market decide their future's individually.
Thankfully they seem to have recognized this problem and look as tough they have some plans to rectify this at least partially (though I would go further). This could be an easy way to unlock value for shareholders, especially if they use a cheap and simple method such as an in-specie distribution. Then those with an interest in thermal power generation aren't forced to invest in uranium specs and coal to liquids - unless they want to.
Looking forward to holding a greater interest in Global Geothermal and less of the rest at some point in the near future.
WAS Price at posting:
1.3¢ Sentiment: LT Buy Disclosure: Held
