US Geothermal, Inc. (NYSE:HTM) Can Start a New Rally

[[tagnumber 0]]Shares of US Geothermal, Inc. (NYSE:HTM) got a bullish chart pattern as the price consolidated at the close yesterday above the 10– and 20–day moving averages. The company‘s Board approved a share repurchase program in August on which the stock climbed to a new high while the second quarter report showed substantial increase in profit this year.[[tagnumber 1]] [[tagnumber 0]][[tagnumber 3]][[tagnumber 1]] [[tagnumber 0]]HTM closed at $0.605 for a share yesterday, gaining only 0.33% from the previous close. Trading volumes started to grow up again and technically the stock seems to have a bullish chart for today. Technical indicators for HTM are in a bullish position and thus the share price could move higher towards the higher end of the trading range.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]Current market cap of HTM is less than half the reported book value of equity in the company‘s latest quarter report. Yet, that low valuation could be justified as HTM does not seem to be in the perfect financial condition. It has a $98 million liability in the form of notes, $4 million of which due already in the current quarter.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 12]][[tagnumber 1]] [[tagnumber 0]]Though the company has positive operating cashflows and there is an increase in the net profit attributable to HTM shareholders for the first half of this year, revenues do not grow fast enough to make the stock attractive. Also, overall production was lower in the second quarter due to scheduled maintenance, while two of the three working plants had lower contracted energy rates.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]Last month, HTM announced its Board of Directors has approved a share repurchase program for up to $2 million that will run through the end of July 2016. That could provide more support for the share price in the next weeks.[[tagnumber 1]] [[tagnumber 20]] [[tagnumber 1]]