Friday, January 24, 2014

Seeking Alpha: It's Not Easy Being GreenHunter

Given the controversy over the pollution risks from the improper handling of wastewater produced from fracking operations, I looked into GreenHunter Resources (GRH) hoping that I might find an appealing small cap energy services play. I have to say that I came away disappointed and unimpressed.

I do believe that GreenHunter is addressing a large potential market opportunity. Although wells in the Marcellus and Utica shales do not typically require as much water as those in the Bakken, the lack of disposal capacity (including haulage) has led to strong pricing.

My problem is with GreenHunter's apparent operating plan and financing woes - although I understand it takes money to make money, I don't see enough upside in the shares right now to compensate me for the risk. Speculative investors who believe that GreenHunter can grow out of its funding problems may be proven right (and have sizable profits to show for it), but I'm willing to take the risk of missing out until I see more signs of capital stability in the business.

Follow this link for more:
It's Not Easy Being GreenHunter

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