“Tiny $0.80 Geothermal Company Is Now Generating Revenue: BUY!”

By Travis Johnson, Stock Gumshoe, March 2, 2009

That’s the subject line of a recent ad from Jeff Siegel for his Green Chip Stocks newsletter, as he issues a new buy recommendation on a stock that he has written about several times before.

It’s a geothermal power generation company, which was a huge favorite of investors for quite a while in 2007 and 2008 when energy prices were climbing and alternative energy stocks of all stripes were taking turns being the “flavor of the month.”

We’ve seen many of these stocks teased by newsletter writers over the past couple years, including the one we’ll look at today, not just by Green Chip Stocks but by several other newsletters as well.

So what is today’s pick? And with almost every single stock in the market falling like a stone today, is it worth a gander?

Siegel tells us the story of going to meet the executives of this particular company a few years ago:

“After I checked into the Marriott, dropped off my luggage and freshened up, I was escorted to downtown Boise, where I was to meet the top brass of my latest blockbuster renewable energy play.

“I met them at the Basque restaurant Leku Ona, which means “good place.”

“I was pretty excited to meet the officers of the company because single-handedly these guys sealed the deal to construct and operate the first-ever geothermal power plant in the state of Idaho. This is huge considering the DOE ranks Idaho 3rd in the nation in potential geothermal energy capacity. Only California and Oregon are bigger.”

And the story continues …

“Now, the next day – on Saturday, July 29, I attended the groundbreaking ceremony at the site of the new power plant, which is situated in a town known as Raft River.

“Raft River is the most unlikely place to find the early stages of the American geothermal revolution. It’s a jerkwater outpost that’s a 3-hour drive from Boise. When I say “jerkwater” I mean this place is isolated from civilization. I counted only 6 residential homes and just one diner on our way in.

“But I couldn’t have cared less. This was an historic day for the state of Idaho and for the entire geothermal energy market.

“You see, the geothermal power plant at Raft River would soon become the only geothermal power plant in the state of Idaho. So this tiny $0.80 company had a virtual stranglehold on the Gem state. “

He goes on to explain the potential of this company …

“And were talking about a mountain of cash in return. This one single project has a potential worth of about $140 million in annual revenue!”

And then he goes on to explain why this stock should be bought now — I’ll give you a little hint: he thinks it’s a bargain, because it’s once again as cheap as it was when he first touted it:

“I recommended this geothermal stock to my readers on July 25, 2006, when it was trading for around $0.80 a share. By October 31, 2007, the stock hit $4.78 a share – delivering Green Chip investors a 497% gain – in less than 14 months….

“Less than 3 years ago, this company had no operational power plants, no revenue stream, and only one other property besides the one in Idaho.

“That’s when we first got in and watched it soar ne