Polaris Infrastructure

(A Top Pick Oct 27/17, Down 24%) They are operating superbly. They have gone through a transformation over the last few years. The big issue is the political risk because there is quite a bit of political unrest where they opreate. The asset is performing well but the stock went down because of political uncertainty. The stock trades at a huge discount.

Had done well, then problems in Nicaragua. A one-asset company. Don’t want to own. Well run, but market is telling you that the risks are higher, and the risks can wipe out your dividend in a hurry. Government could cancel their contract. Yield is north of 7%.

It has been a great turnaround story. They paid down a bunch of debt. It is a stable business. Everything is going well, but there has been some recent political turmoil and is creating an overhang on the company. It is hard to know how it is going to play out.

Good time to buy? Geothermal play in Latin America, especially Nicaragua. Very much a growth play. Only one project up and running, but tremendous opportunity here. Canada already has renewable infrastructure. But a lot of countries don’t yet. Bit more of political risk, that’s why it’s a growth play and not a dividend play.

(A Top Pick May 29/2017, Down 17%) Own geothermal facility in Nicaragua. Steady cash flow, nice dividend. Had been performing well until recently, with civil unrest in Nicaragua, which they think will resolve, but this is one of the risks of investing in another jurisdiction. One positive is that this asset is a stable business and is pretty important to the country. Pullback could even be a buying opportunity.

Providing power in Central America. They are bringing down the price of power in Nicaragua. Management is doing an outstanding job. 17% cash flow yield so lots of upside here. Dividend Yield if 4.2% (Analysts’ price target is $26.00)

his company has a large rock quarry in BC, he says, and their biggest customers are in California. If there is a big infrastructure bill put forward in the US and if cement will be sourced from Canada, this company would directly benefit.

They have a current geothermal facility in Nicaragua. They pay a nice dividend and have a low payout ratio. They have a low PE. If they partially closed the valuation gap it would be $30 plus stock. (Analysts’ target: $25.00).

(Top Pick Apr 4/17, Up 17.84%) They reported a strong quarter. They had gone through a restructuring and now they are focusing on operating as expected. They are going to expand the current project and then move onto new ones.

Not a very liquid stock. This is a cash flow story. They operate from a plant in Nicaragua. Have increased their dividend quite regularly. Yields about 4%, which is paid in US$s. There are some growth opportunities. They are going to be drilling more wells, and are looking to put in a heat exchanger which would add a lot more output. Thinks there is room for upside and that the dividend will grow.

Their main asset is a geothermal energy facility in Nicaragua, a pretty stable political jurisdiction. Nicaragua relies significantly on renewable energy for power generation, in particular this company’s power facility. They have a long-term contract with the government, which generates very stable cash flow. Dividend yield of 4%. (Analysts’ price target is $25.)

A geothermal play in Nicaragua. He saw a presentation in January where they finally got their utilization levels up to a reasonable level, which isn’t that far from a point where equity investors are wiped out. They are now at a point where they could start generating cash flow. Instead of milking this as a cash cow, they are going to spend some more money, and he shook his head in disbelief. He would run for the hills from this stock.

Geothermal energy. They punch holes in the ground down to hot water and steam, and send it up through a power plant. Producing about 70 MW of power, which is supposed to grow over time. This is a cash flow investment. Once they set up the facilities, they should run and generate cash. It will be a dividend play over time. Based in Nicaragua, which apparently has pretty good laws. Probably not a huge growth stock.

A geothermal energy player in Nicaragua. New management and new capital came in, in 2015 and turned it into becoming a very efficient operation. They’ve continued to capitalize upon growth opportunities going forward. Some drilling plans they have are going to continue to grow their cash flow. Dividend yield of 4.41%. (Analysts’ price target is $23.)

Geothermal energy in Nicaragua. They have a fantastic PPA with the grid operator there. They pay a dividend and have raised it twice in the last few months. They pay in US$. There is upside in the form of higher production. There is a chance you might get a bid from a bigger operator. (Analysts’ Target: $22.33).

(A Top Pick Oct 8/15. Up 47.87%.) Operates a geothermal plant in Nicaragua. They basically punch holes in the ground, draw steam up, and it turns turbines. This also has a US$ dividend. He still likes this and thinks it still has upside. Payout ratio is 50%.

It is a little junior for him. They are in geothermal in Nicaragua. It is a one plant operation in a third world country. It is risky. It ticks all the right boxes, however.

The company has doubled in the last 6 months. They are a geothermal company that sells electricity to governments. It seems like a decent company.

Thinks that the run on this can continue. They have enough things in the works to increase their dividend which is paid in US$. They have drilled some holes which looks pretty promising. They have equipment that they can add on to the plant which adds a lot of megawatts. For every megawatt they add, they add about $1 million US of cash flow. Definitely thinks the dividend is heading higher, and he could see the stock reaching $20 in the next year or so.

An energy producer. Has a geothermal plant in Nicaragua. They have cash flow and initiated a dividend this year. Dirt cheap. He really likes this and has been buying a lot of it. Trading at a massive discount to its BV. Have some good upside. Some of their drilling programs could bring in significant more cash flow.

A turnaround story that was recently recapitalized to reduce their debt. They have a geothermal plant in Nicaragua. It is only operating at 2/3rds capacity. It is cranking out lot of free cash flow. They have a much bigger reservoir that they have been studying. The world bank is happy to fund them. There may be some M & A. There is a dividend.

Thinks it will go higher from here but not see its all time highs any time soon. Operations have turned around and financial risk is out of the stock.

Converted to dividend paying company late last year so market was focusing on looking at last quarter results and could they sustain the dividend. The results showed increase debt, which surprised market. Strategic review today did not tell market much so that is why it is down.

Thinks they are out of the woods operationally. Brought their phase 2 power plant online and are about to refinance the bridge and mezzanine (?) debt, which lowers their interest charge.