Regulatory Decision Confirms Attractive Value At Capstone Infrastructure

Summary

Competition Markets Authority released its summary decision, with management confident that dividends can be sustained under new rates.

Management discussed additional levers to find value at Bristol Water, including new financing options, additional efficiencies and increased leverage.

Overall, following the decision, valuation has been derisked and significant upside maintained.

Nearly two months ago, we published a report on Capstone Infrastructure Corporation (OTCPK:MCQPF), a Canadian small-cap infrastructure company. The company has a variety of critical infrastructure assets, from solar, wind, hydro and biomass power generation, to natural gas co-generation, district heating and a water utility. The firm’s assets are geographically diverse, with the power assets located in Canada, the district heating business in Sweden and the water utility located in the U.K. The company has a market capitalization of just over C$300 million (US$230 million) and is traded primarily on the Toronto Stock Exchange under the symbol “CSE.” Today, we would like to share some analysis of a recent regulatory decision that we believe adds considerable certainty to the future sustainability of Capstone Infrastructure and confirms the company as an attractive value play. For the full article click here 

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