The current month is not among the best for the shares of Nevada Geothermal Power Inc. (CVE:NGP), (OTC:NGLPF). The stock has been falling since the beginning of April and has lost 23.5% from its value over that period on the TSX Venture Exchange (CVE). It is coming nearer and nearer to its yearly-low level of $0.48. Meanwhile, the company has remained silent and has announced no new developments lately.

Nevada_Geothermal_-_Chart_-_20_Apr_2011.jpgIt means there is absolutely no obvious reason for the recent shares’ decline on the Canadian market. We might only suppose that shorters’ activity is probably responsible for the plunge of the stock on the CVE.

Otherwise, we have nothing else that could explain yesterday’s 10.3% fall of NGP on the TSX Venture Exchange. The stock dropped to $0.52 in the end of the session. Besides, the decline was confirmed by a turnover beating 2.4 times the average for the company.

As we wrote in an earlier article, Nevada has certain financial problems with a working capital deficiency of $ 3.1M in the end of 2010.

On the other hand, the company is trying to expand its business – last February it entered an agreement with Iceland American Energy (IAE), under which Nevada acquired the exclusive right to purchase 100% of IAE’s deposits in the Imperial Valley in California for $4.15M.

3Nevada_Geothermal_-_Logo.pngStill, there is no guarantee how valuable the IAE’s projects really are – only the future will show. From a technical perspective, NGP is touchng the oversold area. It is far from clear whether the stock will enter this area and for how long it will stay there.