I personally think it was a great investment. I know investors aren't impressed but I think management has really transformed this business over the last few years.
Yes there's been some mess, in particular the refinancing but this was absolutely necessary for the bigger picture. The 123MW upgrade will make more sense when there's an extra 400MW of intermittent renewables contracted @ 75%.
Batteries are good, but expensive. They have value but gas peakers are going to play the biggest part short-mid term. Gas prices are high but have been much higher and they have big government and industry pressure to move to the downside
Smithfield also looks to have been acquired cheap in regards to the $200M price tag indicated when they first approached the market late last year. I guess this has to do with how well it compliments Infigen' strategy compared to other market players, just my thought.
In regards to the money being better used paying down debt, I strongly disagree. Smithfield will produce 12% returns purely on the firming of the business not to mention other high price events. Much better than ~6% debt cost.
The dividend is more symbolic and will attract new investors and reassure others of more reliable future returns
IMO, I'm a happy holder at these prices DYOR
IFN Price at posting:
47.0¢ Sentiment: Buy Disclosure: Held
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