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Follow Plutonic on Facebook| Wed May 13, 2009 Plutonic Power Shares Soar After BC Election Publisher: DOW JONES NEWSWIRES Author: Jennifer Walter | |
| TORONTO (Dow Jones)-Plutonic Power Corp. shares are up more than 20% following the re-election of the B.C. Liberal government. The Vancouver company develops run-of-river hydroelectric projects in British Columbia, and several analysts have said the election results should be a positive development for the company. "We believe that no public company should benefit more from a B.C. Liberal win than 100%-B.C. based Plutonic Power," Scotia Capital analyst Ben Isaacson said in a note. Isaacson raised his target price for the company to C$4.25 from C$3.75. Plutonic Power is totally dependent on the B.C. power market for growth, with projects scattered across the province. "The B.C. Liberal party victory nearly guarantees that the current BC Hydro Clean Power Call will not be scrapped, as well as opens the door for future power calls," Isaacson said. Plutonic Power Chief Executive Donald McInnes said the election was "a huge affirmation for Plutonic's business plan and...(Premier) Gordon Campbell's vision that B.C. become a powerhouse in green energy development is now supported, justified and embraced by the electorate." He said British Columbians are taking climate change and carbon, or greenhouse gas, emissions seriously and that the government is looking at companies such as Plutonic as an environmentally friendly way to create low-cost, economic solutions to long-term provincial power supply. "This is a massive opportunity...and the price of our stock today reflects the almost instantaneous change in the investment climate for such projects following the provincial election," McInnes said. He said projects such as its proposed Bute Inlet Hydroelectric project, will, if approved, create some 1,200 to 1,500 jobs over eight years. This is in stark contrast to the wave of mine and pulp-and-paper mill closures that have hit employment in towns across the western province, he said. In Toronto Wednesday, Plutonic shares are up 70 Canadian cents or 24.1% to C$3.60 on 645,000 shares. Versant Partners analyst Massimo Fiore maintained his buy rating and his target price of C$5.60 for the company. Still, Fiore told Dow Jones that he thinks the election results are big news for Plutonic Power. "I think that since the Liberals are back in power now, it's likely that there will be a push for more renewable power development," Fiore said. "Plutonic still has to win its bids, but at least we have reassurance now that the government supports the development of new renewable energy." Fiore owns Plutonic Power shares but Versant doesn't have an investment-banking relationship with the company; Isaacson doesn't own the shares but his firm expects compensation for investment-banking services within the next three months. BC Hydro put out a call for 5,000 gigawatt hours of clean or renewable energy a year under its 2008 Clean Power Call. Plutonic Power submitted bids for roughly 3,400 GWh split between two project sites. Independent power producers expect BC Hydro to announce bid winners in June. | |
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