At the risk of sounding like an old fogey, I don’t get Twitter. I’ve tried, but I just don’t see the necessity for what amounts to sms updates to the world at large – I mean, why bother? There’s IM that tells if you’re available or not. Email is instantaneous and ubiquitous these days. People, ahem, blog frequently letting others know what they’re up to. Why Twit? What’s the big attraction? Has it ever proven useful? Enquiring minds want to know…..

While I don’t get Twitter, I do have to admit, for some unknown reason, Twittervision can be mesmerizing although it’s a complete waste of time. All these people twitting here and there projected on a global map. But look at the content for a moment and it’s easy to realize this is not a high value communications medium.

So intrepid readers, if you twitter, tell me, what am I missing? Have I crossed the threshold to old?

Polaris Geothermal, who recently announced a successful well test on their Nicaraguan concession, has recently announced a debt funding round of $27M in exchange for 27,000 units. A unit will consist of $1,000 in 9.5% senior debt, 667 warrants, and 75 penalty rights. The debt is due in 18 months time and will be paid quarterly in arrears. Jacob & Company, the underwriters of the deal, stand to benefit $1.89M for their fee and an option to acquire 7% of the offering.

The proceeds from this funding round will be used to retire $8.3M in debt due and the balance will be used for general corporate purposes according to the company. This debt round comes on the heels of a prior $32M private placement completed in July, 2007.

I’ve found it! Nirvana!

Sunday I showed up a little less than an hour before an international flight at SFO. I should have been worried, right? Wrong! First off, the United web check-in program is brilliant. As mentioned in a prior entry, Fly Clear is also brilliant. The combination of the two programs? Priceless. I was at the gate after having dropped of my luggage and breezed through the security line with 15 minutes to spare.

As Kevin mentioned recently, you have to wonder about people who share secrets, but hey, you were going to find out anyway. I can’t imagine flying the “old way” – too much hassle and too much time wasting…

Maiden Voyage of SkySail

Photo Credit: SkySail

In December, 2006, Return to the Age of Sail, we first reported on SkySails. The concept is simple, use an enormous kite-sail in conjunction with conventional propulsion to reduce the fuel requirement for cargo ships. Rather than investing in masts and extensive rigging, the SkySails approach is to fly a kite sail (which resembles a modern parachute in design) up to a kilometer above the ship. At this height, wind speed is substantially higher yielding better wind power results.

In the maiden voyage of nearly 12,000 nautical miles, the reported performance was an aid of 20% resulting in a net savings of about 2.5 tons of fuel and more than $1,000 a day. This is our favorite kind of green project, it produces a good environmental benefit along with a strong tangible economic benefit.

Here’s the core question: Is Raser a legitimate geothermal developer or a company chasing the latest hot trend pumping out news to prop up valuation?

There has been some spirited discussion inside our shop about which is the “real” Raser, and as a team, we’ve really taken a “wait and see” attitude. One side of the argument goes: this is a company that has entered the geothermal developer space with both feet. The company has acquired development rights on nearly 12,000 acres, has now inked a PPA for 21MW, has secured funding for 155MW of construction, has drilled a well and hit resource, and has secured a deal with a supplier for the harvest technology needed to convert geothermal resource into electricity. If that’s not the profile of a “real” geothermal developer, then what is?

The other argument centers around the fundamentals. The company’s cumulative revenue is under $1M and its cumulative loss is now over $50M. Yet, it maintains a market capitalization of nearly $400M! The first Raser business centered around electric motors and was branded Symetron and targeted for use in the automotive industry. Despite a few agreements, the business has failed to materialize. Thus, a strategy switch to geothermal developer with an initial false start where a definitive agreement to purchase a geothermal company was terminated at the target’s request. Now, the company has charted a course to fund the geothermal development with heavy debt and dilutive equity agreements. The facts are stark: The company has under $6M in cash and near-term liabilities due this year over over $34M according to its own financial filings. In fact, in those filings, the company’s independent auditor questions the company’s ability to carry on operations.

There are the two arguments, there is validity in both positions we believe, but recent developments show the company is serious about geothermal development even if the financial underpinnings are very precarious. One way or another, 2008 is the year that should answer the question definitively.