“Will this stock ever start going up again?”. Probably this is what many traders have been wondering over the last three and a half months about the shares of Nevada Geothermal Power Inc. (CVE:NGP), (OTC:NGLPF). Now it looks the stock has finally ceased its fall on the TSX Venture exchange (CVE).

Nevada_Geothermal_-_Chart.pngThis could only be to investor’s delight. After all, how would you feel to have put your money in stock bringing you losses with its dropping price for several months?

Having climbed to a new high of $0.88 per share in early November, NGP began to sink, losing 34% till last Tuesday. Since then, the decline seems to have stopped. Last session, NGP moved 3% up. This happened soon after  a new company release was issued.

Last Wednesday, Nevada Power informed about its agreement with Iceland American Energy (IAE) under which the company acquires the exclusive right to purchase 100% of IAE’s deposits in the Imperial Valley in California for $4.15M. Nevada Power will pay only $100K in cash and the rest by issuing shares.

It looks the company is expanding by coming into possession of new assets. This gives a good ground for a further appreciation of the shares.

As the name suggests, Nevada Power is a renewable energy company developing geothermal energy projects.

Geothermal energy is defined as a heat emanating from the interior of the Earth. It is considered to be a clean, renewable resource that provides energy around the world. The heat from the Earth is essentially limitless and is available practically everywhere. This is expected to remain so for billions of years to come, ensuring an inexhaustible supply of energy.

Ten days ago, the company took part in GEA 2011 Geothermal Energy Finance Forum in New York where plenty of views about geothermal project development were shared.

In spite of all these achievements, Nevada Power has several issues to attend, as they could influence negatively the share performance too. At the end of 2010, the company reported a $3.1M working capital deficiency, with current liabilities being in surplus of current assets. In addition, it is still questionable how prospective the fore-mentioned IAE’s properties really are. Only the future will show.

Nevada_Geothermal_-_Logo.pngNevertheless, the future does not  at all look dark for Nevada Power. The company is ranked as a 2011 TSX Venture 50, which is recognition of its overall robust performance on the market.