RPG in tomorrows Globe&MailQuote
"Investors looking to buy energy dirt cheap may want to consider an unconventional asset – shares of geothermal power producers.
Purchase a stake in one of these green power firms, and it’s possible to buy reserves of energy in the ground at a price that works out to be the equivalent of about $5 (U.S.) per barrel of oil, according to analysts at Wellington West Capital Markets in Winnipeg. That’s a huge discount to the $50 a barrel usually applied to proven reserves at junior oil companies, and of course, a whopping haircut to current market values of around $100 a barrel for oil .
In a note to clients, the Wellington analysts concluded that geothermal companies offer energy exposure that is “significantly undervalued” by the market, even though they think the reserves should trade at a premium to oil in the ground, based on their view that geothermal is a cleaner power source than hydrocarbons. "
The article goes further in depth and mentions that RPG is buy rated at Wellington. GLTA