However, unlike the price fall, trading volume of RZTI remained over 1 million, which is quite impressive for the stock. Now investors are concerned what will happen next, as the sharp difference in prices provokes attention.The records show that the latest gain of RZTI was a result of some positive news on the company’s business. A couple of days ago, wallstreetequityresearch.com published a small-cap research on Raser Technologies, pointing out that the company has recently announced the commencement of drilling a production well at its second geothermal power project. According to the announcement, Raser will produce 15 megawatts once the project is completed. This statement immediately influenced RZTI stock price, though it was back down shortly.[BANNER]
Raser Technologies, Inc. is an energy technology company focused on geothermal power development and technology licensing. Since the beginning of this year, RZTI has been releasing good news on its drilling operations and the stock made a few heavy gains, though the up move didn’t last long. Now everyone is expecting the next move of RZTI, which at this point seems to be unpredictable.
The only certain thing here is that the 10-Q report of Raser is quite disappointing. The company’s liabilities are almost 50% higher than its totals assets and it has a long-term debt to pay. Apart from this fact, as of end-November, 2010 the accumulated deficit of RZTI exceeded $194 million and the stockholders’ deficit was around $50 million. Apparently, Raser is not operating at cash break-even and its cash balance will not be sufficient to satisfy the company’s needs.
