We have just completed a research paper on a renewable wind energy producer called Infigen (IFN). We would like to share our findings with you. IFN generates renewable wind power. On our assessment, there will be a shortage of renewable energy production to meet the Government's legislated renewable energy target, and therefore the current very high renewable electricity prices will be maintained till 2021. On this basis, over this period IFN will likely earn excellent returns, and this does not seem to be priced into the stock. We think IFN is trading on a 2017 price earning multiple of just six times. Despite a market capitalisation of over $500 million, the stock has no broker coverage, likely creating this potential mispricing. Please feel free to critically assess our detailed research note at: (VIEW LINK)
Thanks for sharing Tim, you make a very compelling case. Am I understanding correctly that they're generating less than 1/3 of their capacity - so they could triple volumes with next to no CapEx? Or is there some operational reason why they're running at a fraction of capacity?
Hi Patrick, different types of electricity generators run at different rates. Because mainstream renewable sources are variable (wind blowing, sun shining) - their actual output can range from 20-50% of installed capacity. Conversely, base load generators such as nuclear and thermal run close to 100%.