Give Your Portfolio a Head of Steam With Ormat
By Morningstar:
by Mark Barnett
One of the brightest stars in the Morningstar alternative-energy universe is Ormat Technologies (ORA), the premier developer and operator of high-efficiency geothermal equipment and power plants. Cost overruns at its newest plant, North Brawley, combined with a drop-off in the products business in 2010 drove Ormat's shares well below our fair value estimate. Concerns about the viability of U.S. renewable tax policy, a primary financing vehicle for growth, have kept up the pressure. But with its recent financing successes and substantial new plant orders, we think the time is right to scoop up shares before results improve in a big way in 2012 and beyond. Ormat's low-cost, environmentally friendly advantage makes it the only independent power producer in Morningstar's coverage universe with an economic moat, and it is currently the only alternative energy company Morningstar covers with a 5-star rating. Industry-Leading Growth on Tap Ormat, whose verticallyComplete Story »
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