Pritchard Capital: Magma Energy Still Has Long Term Potential

Pritchard Capital Partners believes the stock for Magma Energy Corp. MXY is undervalued. In a research report, Pritchard writes "The acquisition of HS Orka, which is finally deemed legal, is a major milestone for the company. Since MXY went public in July 2009, the company has grown from 11 MW of capacity to 186 MW. On the conference call, the company mentioned that they are planning to apply for a listing and go on a US stock exchange this coming winter, which we consider good news in terms of improving the liquidity of the stock." Pritchard maintains its Buy rating and $2 price target. Magma Energy closed yesterday at $1.42.