John Pugsley's opinionhttps://www.marketoracle.cn/Article27147.html
TER: You briefly touched on geothermal, and now peopleare starting to realize that it can be harnessed to producehydroelectric power in numerous areas around the world. Do you havesome thoughts on how our readers can profit in that arena?
JP: I think geothermal is an excellent area forinvestors. The market hasn't looked favorably upon geothermal in thelast couple of years. One of the reasons is that it takes a lot of timeand an immense amount of capital to develop a geothermal resource.There are four juniors companies in the field right now. One would be
Nevada Geothermal Power Inc. (TSX.V:NGP). The others would be
U.S. Geothermal Inc. (TSX:GTH; NYSE:HTM),
Magma Energy Corp. (TSX:MXY) that Ross Beaty started and
Ram Power Corp. (TSX:RPG). All of them are very cheap because geothermal hasn't gotten investors excited.
Of the four, I think Ram is the cheapest. It got hit when the founder ofthe company, Hezy Ram, quit. That was based on some problems thecompany had in developing its resource in Nicaragua. This spooked themarket and Ram stock sold way off—down to about $1.20. I think it's atremendous buy. We bought it at a lot higher price. I think $3.50 wasthe price at which I recommended buying it—and no more than that. Allof a sudden the whole thing began to collapse. It dropped way down, butI'm about to put out a buy order for Ram again because I think thefundamentals are there and the company's going to do just fine. Ramjust received a $50 million, two-year-term loan credit facility. It's agreat buy at the price it's at right now, based on what I know ishappening down there and the people that are involved.