Infigen Energy
Recommendation
There have been no particularly important announcements from this wind farm owner since Downdraught prompts Infigen upgrade of 30 Nov 11 (Speculative Buy – $0.22). Major shareholder The Children’s Investment Fund has continued to creep up the register and now owns almost 30% of Infigen Energy. It’s an interesting development but we doubt it’s a harbinger of anything. Corporate action is a possibility but Children’s isn’t a logical bidder. It is, however, clearly happy to own more stock and potentially more influence over any asset-sale process.
With Infigen’s share price up 27% since our last review, the value on offer has diminished. The stock is still quite cheap, but the opportunity is no longer lopsided enough for us. In case you missed it, we published a ‘Dumb questions’ video on Infigen in December which outlines the important risks and opportunities for the company. With the share price no longer compelling, though, we’re downgrading to HOLD and watching closely.