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Ormat Technologies Inc. Message Board

  • weslowskim weslowskim Jan 9, 2012 4:18 PM Flag

    Non-Marginable Security ORA

    I thought this was a reasonably secure investment. However, my attempt to purchase this stock was denied because it is a Non-Marginable Security. I was disappointed but it makes you stop and think before you invest. I might consider other securities first and check out why this is so risky. The dividend is very low and the earnings are also almost nil. Also, the stock is in a death spiral with likely margin calls if others had it on margin. Any Thoughts? Please reply.

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    • Buddy - you answered your own question. Its a crappy and risky stock. Why would your broker lend you money against it?

      • 2 Replies to medcan1
      • when you are short you are speculating about construction problems or 2014. Construction doesn't stop completly when the stimulas money runs out, nat gas prices are going up, cap and trade is in and price increases for other ppa's come into effect slowly and many new plants are coming online.

      • Sounds like you are short, I suspect you could get burned pretty bad because you look at the risky minors and try to combine ormat with them. Maybe sometime in late 2013 if you figure that construction falls off a cliff (and that may not happen because of overseas construction) and that decline is more than the new electric from the plants constructed. I also notice that nat gas prices are going up and it may not be a record warm winter this year. enviremental devopment corp and ormat are clearly in a different catagory from the other alternative geothermal stocks.

    • mine says it is marginable and usable as margin (unless it is a covered call)

    • Thats up to your broker. maybe you are using a risky amount of leverage. As a long term investment/investor I should state that I would like it better if you panicked. It may be alot like watching paint dry, but they could always do something intresting like bio-gas in kenya or something.

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