Investors often overlook SEC filings, and it is the job of the 10Q Detective to dig through businesses’ 8-K and 10-Q SEC filings, looking for financial statement ‘soft spots,'(depreciation policies, warranty reserves, and restructuring charges, etc.)that may materially impact Quality of Earnings.
Friday, October 02, 2009
If Only Raser Tech Could Power Generators With "Hot Air!"
Raser Technologies (RZ-$1.40) still maintains that the five production wells drilled to date are viable geothermal resources, with demonstrated flow temperatures in “commercially productive” ranges of approximately 240° Fahrenheit to 300° Fahrenheit, and bottom-hole temperatures in excess of 350° Fahrenheit. Never mind questioning previous statements by management supporting the economics of its technology at “lower temperatures.”
Given Raser’s checkered history, I wouldn’t pin my hopes on the company solving its geothermal power problems. Management will likely stumble onto other revenue pathways to profitability: