AltaGas Ltd T.ALA

Not so an exciting market at the moment but...

[bossu]

The only consolation for ALA share holders is the fact that we are not  experiencing a big damage so far and the next quarter results is the stronger of the year with a 40% of the yearly EBITDA  and this will help the share price going foreward 

Would not want to  be in the renewables where just a couple months ago 
manyinvestors  were getting into the train and now experimenting a significant drop in the share price.
Better to  be   in an  overly  cash position where you d'ont have any yield but not experimenting any loss.
''Dry powder '' will be usefull and I d'ont see the market going higher !

[GunnerG]

Confusing, 40% of yearly EBITDA next quarter which should help sp going forward. Then you say better to be in cash and you dont see market going higher. Seems contradictory IMHO.

[bossu]

From The EBIDA delivered in 2020 $ 1 310 B or 12 % growth from 2019 The projected EBITDA for      2021 $ 1 400 B -$ 1 5 B  is way underestimate  « The upper end of the guidance need ''only'' $ 190 M . Just to show you that  all  the projected EBITDA    from the  Petrogas acquisition : «Assuming reasonable LPG exports

[bossu]

Still not very exciting today. -What willl decide OPEP today.---500 000 barels/day increase or stand still  -What will Powell will say  Powell likely to push back on bond-market doubts over Fed policy . -Tomorrow something else: ''Jobs number in the US -Would not take many ''clouds.'' to make the market to drift lower...

[Capharnaum]

It's all short term noise. The 10 year bond rate is still on the lower end at 1.5%. In the latest bull markets, the rate has been between 2% and 2.5%, to reflect a normal 1.5% to 2% inflation rate. The 10 year bond rate had never been in history below 1.5% before last year. As to OPEP, an increase would lower oil prices, which in general is good for the economy (I know it's bad for the

[bossu]

Thank you Capharnaum , Very informative. Have a look at Fortis bullboard where I made a copy of this morning Globe and Mail  The kind of Company to consider in the kind of market we are in .

[Capharnaum]

It's true that higher yields should compress utilities multiples. Since utilities have a somewhat fixed rate of return, the spread between their rate of return and the 10 year bond (or inflation rate) drives their multiple up. However, I think in the past that markets have underappreciated the excellent cashflows that utilities generate, as well as their value in terms of limited risk return,