1. Most Discussed
  2. Gainers & Losers

re: Pacific Hydro - Any thoughts

  1. Company looks like it has major problems.

    Last year it boosted profits by running the gain on sale from Bay of Plenty energy above the line. There seems no justification for doing this.

    The Wind Industry is brutally competitive and absorbs massive amounts of capital. There are plenty of competors such as HEC, Stanwell Corporation, Trust Power and ANZ Wind. PHY has no technical, locational or commercial advantage.

    The rising Aussie dollar will diminish returns from their Phillipines plant.

    The capital requirement for expansion will soon demand yet another dilutive equity raising.

DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top