Catching my eye today is Spain’s Iberdrola SA which is the worlds largest clean energy utility symbol IBDRY and the second largest utility in Spain. It is also the worlds largest provider of Wind Power. Iberdrola stated in 1998 they intended to invest over $8 billion dollars in clean energy, primarily wind power in the United States, regardless of what Congress may or may not do with tax incentives.
IBDRY plans on building a 30 megawatt wind farm on US forest service land in Vermont and will be called Deerfield Wind Power. Vermont Public Service plans to buy 20 megawatts of power from Deerfield at an undisclosed price with a contract for nine years. Iberdrola will have the option to sell the remaining 10 megawatts at market prices. The project will have 15 wind turbines.
Iberdrola SA is an interesting company in which we have no position in but will commence doing our homework on. In 2008 the company was the potential target of a takeover attempt by France’s state owned Électricité de France and Germany’s E.ON.
Shares of IBDRY are trading at just under $30 a share with an estimated Book Value of $29.73 with a dividend of just over 5.8%. Cash on hand is $6 a share which subtracting from the Book Value and using last years $2.68 in earnings creates an Earnings Yield of 13%, pretty good.
Based upon valuation relative to growth I believe IBDRY deserves further attention. IBDRY meets our standards for Green Investing in that IBDRY is not a speculative company dependent upon a make or break product. IBDRY could make sense for most investors who seek a long term investment in Alternative Energy.
No Position
Brad