China Hydroelectric Corp. (CHC)

[hebercreeper]

$CHC Q2 Results in mid August. American CEO & company operating in China with a nice read from last fall:

China Provides a Favorable Climate for Small Hydro Investment

http://www.renewableenergyworld.com/rea/news/article/2011/10/china-provides-a-favorable-climate-for-small-hydro-investment

After reporting record Q1 results in mid June, management confirmed Q2 would be strong as well:

http://finance.yahoo.com/news/china-hydroelectric-corporation-announces-record-203000445.html

Quote:
As of the date of this release, rainfall in the second quarter of 2012 has been well above that of the same period in 2011 and more in line with above average level we experienced in 2010, particularly in Fujian and Zhejiang provinces, our higher tariff regions.



After drenching Taiwan, typhoon Saola making landfall today will be right in the heart of 60+% of CHC hydro capacity in Zhejiang and Fujian...Q3 is off to a strong start.

Map of facilities:

http://www.sec.gov/Archives/edgar/data/1477156/000093041312002538/c64864xmap.jpg

You'll recall I recently posted news as reported in Chinese media of the Wangkeng facility sale for $45 million. CHC IR would not confirm this "rumor" but stated any such event would be announced with Q2 results in mid August.

Use chrome browser for translation of the asset sale to Fujian Electric Power:

http://istock.jrj.com.cn/article,000993,4661807.html

Yunnan province is coming out of a three-year drought as reported by China Meteorogical News:

Continuous rainfall alleviates drought in Southwest China

http://www.cma.gov.cn/en/NewsReleases/News/201205/t20120531_174168.html

Tariff increases ahead of the current rainy season will go straight to the bottom line & asset sale alleviates short term liquidity issues. When reviewing chart, consider that the run starting in December was sparked by a much smaller asset sale.

I expect this to be a nice turnaround story for the remainder of the year.