re: Pacific Hydro - Any thoughts
Utility_Guy, are you the person who tried to run a scare campaign against Pacific Hydro (PHY) a while ago by claiming that their rotors would slice through rare parrots - but was soon silenced when it was pointed out how slowly their rotors spun around?
It appears that when you claim that PHY unjustifiably claimed a gain on the sale of their Bay of Plenty electricity generating plant above the line, you might not be aware of the change of accounting standards whereby profits are no longer reported as normal (above the line) and abnormal (below the line) profits.
I don't know where you came up with your claim that PHY has no technical, locational or commercial advantage - it has locational advantage in access to sites, technical advantages in the machinery it uses and is planning to produce in Australia and commercial advantages in being one of the first movers in Australia.
The extent to which the rising Aussie dollar will diminish returns from their Phillipines plant depends on what exchange rate hedging policies they have in place. Also, the rising Aussie dollar implies cheaper imports of equipment for the company (once again, depending on exchange rate hedging procedures).
What basis do you have for claiming that the capital requirement for expansion will soon demand yet another dilutive equity raising? The company is highly profitable, pays a low dividend yield and thereby has cash flow available and would have access to debt finance. Even if they do have an equity raising, how do you know that it will be dilutive?
