Canadian Hydro Developers a high-powered stock
The company generates about 364 megawatts through run-of-river, wind and biomass plants in British Columbia, Alberta, Ontario and Quebec. It also has several hydroelectric and wind projects in the pipeline.
However, permitting holdups have forced delays on some of those projects, introducing cost overruns. But for Mr. Isaacson, the company is worth the risk. “We believe the company is undervalued,” he said.
Mr. Isaacson expects Canadian Hydro Developers to add about 400 MW of capacity in the short to mid-term. The company's proposed Dunvegan hydro project in Alberta, which may be confirmed by the first quarter of 2009, will also be critical, he said.
“If commissioned on-time and within budget, this project could add up to $1.50 per share to (Canadian Hydro's) stock price,” he said.
Other selling points for Scotia Capital include a strong 19-year management track record and plenty of stock catalysts in the next 12 to 18 months as Canadian Hydro Developers continues to bid for new projects in British Columbia and Ontario.
Mr. Isaacson based his valuation on a 75%-weighted discounted cash flow approach using a 9.5% discount rate. He also used a 25% net asset value calculation.
Related News
British Columbia Halts Further Expansion of Self-Driving Vehicles
VANCOUVER - British Columbia has halted the expansion of fully autonomous vehicles on its roads. The province has announced it will not approve any new applications for testing or deployment of vehicles that operate without a human driver until it develops a new regulatory framework.
Safety Concerns and Public Questions
The decision follows concerns about the safety of self-driving vehicles and questions about who would be liable in the event of an accident. The BC government emphasizes the need for robust regulations to ensure that self-driving cars and trucks can safely share the road with traditional vehicles, pedestrians,…
