The Rude Awakening
Baltimore, Maryland
Friday, July 13, 2007 ------------------------- - Investors get hot and steamy with geothermal
potential, - An illiquid steam investment on the Bulletin Boards,
- Don't miss this Sunday's options alert, some snazzy
photos from Sonoma and plenty more…
------------------------- Eric Fry, reporting from a hot and steamy location in California… "The state of California and electricity love to make headlines together. It seems there's never enough juice to go around on the West Coast," quips Greg Guenthner, editor of Penny Stock Fortunes. "Doesn't it seem a bit odd, then, that geothermal energy attracts such little attention?" In the column below, Greg points out that geothermal power provides 6% of California's energy supply. And yet, this clean and renewable subterranean energy source garners very little attention. Greg believes that geothermal's low media profile will present compelling investment opportunities, especially considering the industry's breakneck growth worldwide. Within California alone, the California Energy Commission estimates that planned geothermal developments could contribute over 2000 operating jobs by 2010. Worldwide, the International Geothermal Association predicts the "potential creation of about 1.3 million geothermal jobs by 2010." Any industry that can produce 1 million jobs in three years should also be able to produce one or two investment opportunities. --- Don't Miss This Sunday's Alert --- So Far this year, 9 of this investor's triggered picks have at least doubled. In 2003, he had 12 plays that more than doubled.
In 2004, he had another 12 plays at least double.
In 2005, he had 13. Several were even over 300%. This Sunday he's sending a brand new alert, backed by the best guarantee in the financial newsletter business. Click here to find out how you can get in on the next winner: Double Your Money Average On Every Trade -------------------------------------- Geothermal Energy…That's Hot
By Greg Guenthner For decades, we've been burning coal to generate most of our electricity here in the United States. While burning fossil fuels is a cheap and relatively inexpensive way to generate power, its downsides are widely known. And the public dialogue is shifting toward finding better alternatives. Acid rain, mercury and carbon dioxide emissions are all products of coal-burning power plants. In fact, electricity generation is responsible for 38% of the United States' carbon dioxide emissions. Facts like these are fostering the spirited worldwide debate over global warming and - more importantly for investors - the frenzied boom in alternative energy production. No matter whether the planet is becoming too hot…or too cold…or just right, most alternative energy sources offer distinct ecological advantages…if only they were available at a competitive cost. Alternative energies have always been available, of course. Unfortunately, the "competitive cost" part of the story has often presented obstacles. But $70 oil is rapidly changing the competitive landscape for non-traditional energy sources. Furthermore, the cost hurdles of wind, solar and other Earth-friendly power generation techniques will continue to plummet as new technologies emerge. But there's another renewable resource almost no one is talking about. It's a proven power generating system. In fact, this system produces more than 25% of the power in Iceland, thanks to the country's unique geology. And it could be an energy savior, even in parts of the U.S. I'm talking about Geothermal power -- channeling steam produced naturally from deep inside the Earth to power electricity-producing turbines. Because Iceland is so volcanically active, this nation can feed its power needs through geothermal power. As an added bonus, this process does not produce any of the harmful emissions, unlike burning fossil fuels. Of course, the effectiveness of geothermal power has depended largely on location. Iceland is one big volcano, with geysers and steam flowing up almost every crack in the ground. Closer to home, the Geysers field in Northern California happens to be the largest geothermal development in the world. Geothermal energy accounts for about 9,300 megawatts of the world's electricity. That adds up to 60 million people in 24 countries who are getting their power from the Earth's heat. 
In the United States, more than 2,800 megawatts of electricity from geothermal plants supplies four million people in Alaska, California, Hawaii, Nevada and Utah. Six percent of California's power comes from geothermal sources, where 15 new projects are under development. The rabidly green state of California is the perfect place for geothermal expansion. The state of California will require 20% of electricity sales to come from renewable resources by 2010. In 2006, 15% of all electricity used in California came from geothermal, wind, solar and small hydro. Geothermal energy, therefore, already provides more than one third of all of California's renewable power…and most of that geothermal energy comes from the Geysers field - a small cluster of rolling hills in the Sonoma wine country. Apart from a few small buildings and some curious white pipes that wind along the hillsides, you'd never no that much of anything was going on there. 
Historically, small, independent energy companies operated power plants in the Geysers field. But today, Calpine Corp. (CPNLQ. OB), operates 19 of the 21 facilities in the region. You may recall Calpine as one of the high-profile Enron-era basket cases. Through a series of missteps and misfortunes, the one-time darling of Wall Street skidded into bankruptcy. The company continues to operate in bankruptcy, albeit profitably, thanks partly to its vast geothermal operations. Therefore, as the quest for alternative energy accelerates in California and elsewhere, Calpine's turnaround should also accelerate. For the rest of the world where volcanic activity is minimal, there are two options to extract steam from the earth: water pumping and drilling. Water mixed with chemicals can be pumped into the ground to enlarge the natural cracks and passageways, creating big enough steamholes to effectively run large turbines. But some scientists believe they have found a way to extract power from the Earth's heat no matter what the location. It's called an enhanced geothermal system. Essentially, this is a way to "enhance" the flow of water into the ground by pumping in water mixed with chemicals. Think of it as mining for heat, except the drill being used is water. This may seem far-fetched. However, some of the sharpest minds in science see this as one of our best chances at clean, sustainable energy. A 2006 report issued by MIT claims that it would be possible to affordably generate 100 gigawatts of electricity or more by 2050 with a $1 billion investment. The new era of geothermal energy has arrived. Prepare your portfolio. A final comment from Greg: While Calpine's turnaround gains momentum, one tiny competitor is preparing for operations at the Geysers, as well as a second location on the West Coast. Unfortunately, I can't divulge the name of this bulletin board gem in this forum. It's just too small and too illiquid to reveal to a large audience. Currently, the company is pursuing two projects that are under development. One of them is a $100 million geothermal facility at The Geysers in Northern California that is projected to go online sometime before the end of the decade. This will be just what California needs to fulfill its green energy needs as 2010 approaches. We'll be watching to see how the power giants respond to these developments. Buyouts and consolidation could be eminent in the near future. We could even see geothermal power expand beyond areas like The Geysers. Modern technology and advanced drilling should allow these kinds
of operations to spread to locations where geothermal power was thought to be impossible. You can get the name of this future force in power by subscribing to my new Bulletin Board investment service. But you'll have to hurry -- I can only accept a limited amount of readers. There will be an announcement this weekend about the release of my new service and my publishers are expecting spots to fill quickly. If you're interested, be sure to check out this weekend's Rude Awakening. P.S. It must be noted that the Bulletin Board Elite service invests in very thinly traded stocks and, therefore, will be limited to a small number of nimble readers. Doors could be closed this weekend so, unless you want to hang around on the waiting list, I suggest you get in early and avoid disappointment. | 
