/biz/ - Business & Finance

What are you buying now for cheap that will rocket once kyogre virus is over?

Hey /biz/,

I found this little gem on the TSE and pink sheets and I want to know what you guys think about it.

Ticker is RPG on the TSE; or Ram Power.

They're a penny and a microcap, but they're also a geothermal company selling power in Nicaragua. If you can look past the penny and focus on the fundamentals, I'd like to hear your opinion.

2013 Annual report here:
http://ram-power.com/sites/default/files/assets/FINAL%20RAM%20Annual%202013%20Financial%20Statements%203%2031%202014.pdf

The company has a plant that is going to finish remediation on their plant within 10 days, after which it will be possible (depending on the results) for them to issue a dividend.

Now if you take a look at their balance sheet, you'll notice a large decline in their cash, and that's because of paying for CAPEX projects and also because they were conducting repairs on a thermal vent. I believe this company is undervalued because this is a geothermal plant, which means that after it's up and running, the cost to business operations will be virtually non-existent - but it will continue to generate power! That means that cash and distributions for a dividend only rises as time goes on, or so is my investing thesis.

Pending their debt obligations and repayment covenants, if the remediation is satisfactory, it will be capable of distributing dividends reliably for a long time.

Other opportunities include: geothermal industry is pretty much overdue for consolidation so there is always a present chance that the company will be purchased by another company. The company may also be granted future development grants like they did with the geysers project, which is free money.

What does /biz/ think? I've already got a position in myself and I'm thinking of buying more in anticipation of a dividend. Is my reasoning sound?