Buy Ormat Technologies (ORA)

Procrastination and mindless delay can create profits for investors.

The example I use in my book The Jubak Picks is the environment.

 It’s not that we don’t recognize environmental problems; it’s just that it takes so long for us to do anything about them. And then, of course, we rush to find the fastest fix. That delay and then the rushed fix shapes what technologies, what industries, what companies profit from whatever we do to protect the environment—and what technologies and companies get filed under “Great idea. Maybe next universe.”

Well, guess what, we’re doing it again. Environmental delay, that is. And the delay is rearranging where and when the profits lie among environmental industries.

One winner from delay is Ormat Technologies (ORA). The company’s has built, either for itself or for other owners, about 10% of global installed geothermal power capacity. The 27% of the company’s revenues that don’t come from geothermal come from selling or operating power plants that produce electricity from “waste” heat. The company’s recovered energy generation clients include oil pipeline companies, cement makers, and utility companies. (Ormat’s parent company Ormat Industries trades on the Tel Aviv stock exchange, but Ormat Technologies trades on the New York Stock Exchange.)

I think both those technologies are clear winners from global climate change delay. Read more