This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why China Hydroelectric Corp. (CHC) Is Up Today

NEW YORK (TheStreet) -- China Hydroelectric Corp. (CHC) was rising 22.7% to $3.35 after the company announced it has entered into a definitive agreement and plan of merger with CPT Wyndham Holdings Ltd. and CPT Wyndham Sub Ltd., both of which are affiliates of NewQuest Capital Partners and the funds it manages.

Wyndham will purchase China Hydroelectric for $1.17 per ordinary share or $3.51 per American Depositary Share. The company announced on Sept. 4, 2013 it had received a non-binding proposal letter from CPI Ballpark Investments Ltd, an affiliate of the NewQuest Funds, to purchase all of the Company's outstanding ordinary shares that they did not already own. The $3.51 price represents a 57.4% premium over the closing price of $2.23 ADS on Sept. 3 and a 60.5% premium over the volume-weighted average trading price of the ADSs during the 30-day trading period up to and including Sept. 3.

As of 3:17 p.m. on Monday, China Hydroelectric had a volume of more than 1 million, far above its average volume of 67,143 and nearly hit its one-year high of $3.37.

TheStreet Ratings team rates China Hydroelectric ADRs as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate CHINA HYDROELECTRIC CORP-ADR (CHC) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Independent Power Producers & Energy Traders industry. The net income has significantly decreased by 81.3% when compared to the same quarter one year ago, falling from -$1.66 million to -$3.01 million.
  • Net operating cash flow has significantly decreased to $11.96 million or 52.02% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Independent Power Producers & Energy Traders industry and the overall market on the basis of return on equity, CHINA HYDROELECTRIC CORP-ADR underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for CHINA HYDROELECTRIC CORP-ADR is currently very high, coming in at 85.31%. Regardless of CHC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CHC's net profit margin of -18.37% significantly underperformed when compared to the industry average.
  • CHC, with its decline in revenue, underperformed when compared the industry average of 6.1%. Since the same quarter one year prior, revenues fell by 18.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • You can view the full analysis from the report here: CHC Ratings Report

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CHC $0.00 0.00%
AAPL $94.19 0.00%
FB $118.06 0.00%
GOOG $695.70 0.00%
TSLA $222.56 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs