Forum Archive Index - July 2002

[Adam Rands <adamcrands@yahoo.com.au>]

It’s good to see some discussion on Pacific Hydro.
(ASX:PHY)

As mentioned in my first post I have held the stock
for sometime and have been a little puzzled why it has
been sold off over the last 4 months when the future
appears quite bright. I could only put it down to the
weakness in the whole renewable sector.

I was certainly glad to see PHY bounce last week.

My interest in the company started when I looked into
ethical investments and investigated what listed
investment options were available. Pacific Hydro was
the standout by a long way. PHY is the largest and
purest ethical investment listed on the ASX (in my
view).

It has sound management and excellent revenue streams
from geographical disperse regions (major investments
in Philippines and Chile). A few ethical fund managers
as well as America’s largest power generator American
Electric Power (AEP) dominate its share register

The proposed windfram in Portland is what I believe is
behind the sharp increase in price over the last few
days. The project is the largest to be undertaken in
Australia and IMHO will be the impetus for many more
developments.

It’s expected that the Victoria government will give
the go ahead for this development sometime in July.
Positive news may already be in the hands of select
few given the sharp rise on Friday. I must say if this
is the case I am a little surprised given the project
has had very few objections and its approval was
almost certain.

What I particularly like about the Portland project is
the fact they are going to develop a local
manufacturing and assembly facility for the windmills.
Its been mentioned that Pacific Hydro (and its
development partner) will be one of major windmill
developers in the southern hemisphere. With the
inevitable move to more environmentally friendly power
generation this has some long-term benefits for the
company

The Australian government has committed itself to
having 7% of power generated in Australia coming from
renewable sources by 2010. It is sill a long way from
this. There is also pressure to increase this to 10%
to bring themselves inline with Europe.

For what its worth all broker research I have read on
the company has valuations in excess of $4.50

All in all I think PHY is a great long term investment
and worth following closely. I expect the recent
shareprice rise has gained interest from a few
technical traders so it should be an interesting week
ahead.

Adam

Disc – Hold a few


http://www.sold.com.au - SOLD.com.au
- Find yourself a bargain!

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