mowibble, I think you've got the right idea looking at HRL and EHR as geothermal stocks. Both companies have outstanding prospects for the future. EHR is my pick. I'm not holding HRL, but I have certainly had moments where I've regretted not chosing to split between the two (to even out the highs and lows in share price).
Even though both companies are working in the same sector, they have adopted different business strategies. Where HRL have opted to play junior partner to EDC on a number of exploratory projects, EHR have chosen to maintain majority ownership of their flagship project, Copahue (which is the most advanced volcanic geothermal project on the ASX). EHR's choice to maintain majority ownership does mean that they own a lot more up-front risk, however, the future returns could be well worth it. EHR's sp is also quite attractive at the moment (down from the recent high of 4.7c).
Of course, even though HRL have surrendered 70% ownership of their projects, EDC's expertise in geothermal development does significantly de-risk the projects.
Anyway, happy choosing. Whichever side of the fence you end up on, I'm sure that you'll be happy with your choice to invest in the shallow volcanic geothermal sector.
HRL Price at posting:
7.2¢ Sentiment: Buy Disclosure: Not Held
