AltaGas Ltd T.ALA

Just looking at the P/E ratio of ALA

[Johnwith30years]

and it compares very well with any similar companies.  Unless inflastion is runaway then it becomes a harder climate for Utilities but as tehy recover most of it from rising fees to customers if  growth is otherwise strong and export market on their propane  remains strong then ALA is in quite a nice little niche. Analsysts are right to think about 30  12 months out.  I  am targeting a more conservative 28   within 6 months but will revise all estimated after DEc investor day.  Right now I am looking at $1.90 for the full year in earnings which in this climate would boost price to over $27 I predict.

let's see guidance....

[Capharnaum]

Technically, inflation gets reflected in utilities returns, as it increases the cost of capital included in the rate cases. It does lag though, as you need to justify the changes to the cost of capital in a rate case and then wait until those rates apply.

[Johnwith30years]

Yes indeed.  You have said very succinctly what I was getting at.  Modest rate increases are not a problem even though the next rate case willl lag but the big ones don't always get reflected in the rates set - sometimes for political reasons.  Currently I think ALA has just had some good outcomes with rate cases.  But the offset for ALA, unlike other utilities, is they