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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