Have you seen the price of electricity in Victoria since Hazelwoood closed?
It has risen by 30%. Which means Infigens profits are also going to rise by at least 30%. Did you see when they announced the rights issue they also upgraded EBITDA by 5%. I think this is conservative and it is actually going to be 30%, as electricity prices are not coming down anytime soon.
The rights issue increased their capital by 20%, but they are going to use the cash to build a new wind farm that will increase their production capacity by 20%. Makes perfect sense the price should not decline.
I think $1.30 is more like fair value.
Anyone know how to exercise the rights issue?
IFN Price at posting:
$1.03 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)