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59% Potential Gain as New CEO, Dividend Is Announced
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This Canadian company recently made two notable changes and remains a Buy, noted an M Partners report.

Hammond Power Solutions Inc. (HPS.A:TSX; HMDPF:OTC) appointed a new chief executive officer (CEO) and declared a quarterly dividend, reported M Partners analyst Maxwell Carr in a June 6 research note.

59% Potential Gain

M Partners has a Buy rating and a CA$75 per share target price on this manufacturer of dry-type transformers. The Ontario, Canada-based company is currently trading, in comparison, at about CA$47.10 per share. The gap between these two prices reflects a projected possible return for investors of 59%.

Change at the Helm

Carr reported that after an extensive search, Hammond Power appointed Adrian Thomas as its new CEO and will be another member of the board of directors.

This "highly experienced professional," Carr described, has 20-plus years in the electrical and automation industries, including in senior executive roles. Well-known companies at which he has worked include General Electric, TMEIC, and, most recently, Schneider Electric.

"We see the hire as a perfect fit for Hammond Power's long-term strategy to become a global player in the electrical industry," commented Carr.

Thomas is replacing Bill Hammond, the company's CEO of 22 years. Hammond, in turn, will become the executive chairman and "remain involved with the business at a strategic level, where he will continue to provide excellent guidance," Carr wrote.

Dividend To Be Paid

In other news, reported Carr, Hammond Power announced a quarterly cash dividend of CA$0.125 per Class A subordinate voting share and per Class B common share of the company.

The dividend is payable on June 27, 2023, to shareholders as of business close on June 20, 2023.

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Important Disclosures:

  1. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  2. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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Disclosures for M Partners Research, Hammond Power Solutions Inc., June 6, 2023

The particulars contained herein were obtained from sources which we believe to be reliable but are not guaranteed by us and may be incomplete. The opinions expressed are based upon our analysis and interpretation of these particulars and are not to be construed as a solicitation or offer to buy or sell the securities mentioned herein. Disclosure codes are used in accordance with IIROC Rules 3608, 3609, and 3616.

Description of Possible Disclosure Codes:

  1. M Partners or its affiliates collectively beneficially own 1% or more of any class of equity securities of the company which is the subject of the research report.
  2. The analyst or any associate of the analyst responsible for the report or public comment has a long or short position in the company.
  3. M Partners or a director or officer of M Partners or any analyst provided services to the company for remuneration other than normal investment advisory or trade execution services within the preceding 12 months, (may seek compensation for investment banking services from the company herein within the next 3 months).
  4. The director, officer, employee or research analyst is an officer, director or employee of the company, or serves in an advisory capacity to the company.
  5. The analyst has viewed the material operations of the company. We define material operations as an issuer's corporate head office and its main production facility or a satellite facility that is representative of the company's operations. Unless otherwise disclosed herein, the analyst’s travel expenses were not paid for or reimbursed by the company.
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  7. The analyst preparing the report received compensation based upon M Partners investment banking revenues for this issuer

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