Casey's Energy Report in its July 19, 2010, issue, refreshes its buy of Ross Beaty's Magma Energy Corp. at $1.12. The newsletter said buy this geothermal energy play on Aug. 20, 2009, at $1.95, and again on June 18, 2010, at $1.39. Assuming an investment of $1,000 for each of the two buys, the $2,000 investment is worth a disappointing $1,366. The writer scans the press releases and notes that Magma bought Geysir Green's stake in Icelandic geothermal outfit HS Orka. The move takes Magma's ownership to 98.5 per cent. The resulting increase in production (now 186 megawatts) gives Magma more cash flow. The buy also gives Magma greater access to Icelandic expertise in geothermal technology. At Soda Lake in Nevada, the company is increasing its megawatt output to 23 MW from 13.5 MW. The writer says investors should take advantage of the stock's swoon to "average down" their investments. Last month, with the stock at $1.39, he said he was "ecstatic" that he could get Magma at rock-bottom prices. The stock has been on a slide since peaking at $2.10 in August, 2009. The ever-optimistic writer adds that consolidation has pared down the number of geothermal players; Magma could emerge as a blue-chip geothermal, like New York-traded Ormat Technologies.