Q: Now that the Republicans have claimed a clean sweep, how does that bode for the continued electrification and greening of the economy. Do you think that this will slow down growth of such companies as Hammond Power Solutions? Or do you think that things will continue as they have the last few years?
5i Research Answer:
HPS.A has lots of non-green business, but there could certainly be a sentiment impact and possibly a fundamental impact as well. The stock has been weak for the past two weeks. It is possible the 'worry' will be more than the reality, of course, and for now we just don't know. We will have to see if there are any specific changes come January when political power changes hands. HPS also has the financial capacity to make an acquisition in an area not impacted, if it thinks growth might slow elsewhere.