PIF.TO at risk after hurricane in Central America

Hi Rob -I decided to go right to the source and contacted investor relations. Good news, operations were not impacted in a material way:

"Hi Mat,

Both Hurricanes in fact mainly hit in the Northwest of the Caribbean side of the Country. Our facility in San Jacinto is close to the Pacific side, near the city of Leon. Furthermore, our Head office operations in Managua again were not affected given the geographic location of the Capital relative to where the two storms landed. To that end, other than heavy rain, our facilities and people were unscathed in the aftermath of these two Hurricanes."

As mentioned in my original response - typically, if there is a material impact a company will make a timely announcement to ensure shareholders are aware. Given its been 10-days, and Polaris has not made an announcement investors should be comfortable knowing that there was no material impact. Granted, there is always the possibility that the company doesn't disclose - but that would be poor form by management.

Hope that helps.

Mat

Hi Rob,

It is certainly something to be aware of - previous hurricanes in other areas have impacted utilities (short term impacts). The problem, is it is impossible to know the extent of the financial impacts. If material, you would expect PIF Management to make an announcement soon to update shareholders.

Interestingly, the company's share price has continued to move higher over the past couple of weeks. Need to pay close attention to see if PIF makes any announcements - it would be bad form if they waited until next quarterly results to fully disclose impacts (if material). This is one of the risks we outlined with PIF, is the high exposure to a single country. Although it is diversifying away from Nicaragua, it is still heavy reliant on the country.

Mat