Top Pick DetailsAt $17.10, I would expect the over-allotment option to be fully exercised. If it drops close to this level this morning, I will probably add more. It also explains why the SP has been weak lately (info leak?)
Last stock in the clip. GLTA
https://www.bnnbloomberg.ca/video/chris-blumas-top-picks~1991515
Algonquin Power & Utilities Corp (AQN TSX)
Algonquin is a diversified utility with a mix of generation, transmission and distribution assets. The company generates the majority (95 per cent) of its revenue in the U.S. and has two main business groups: regulated services and renewable energy. Algonquin generates most of its profits from regulated utility services and has low commodity price exposure through inflation-indexed, long-term power purchasing agreements (PPAs). Additionally, the company has an attractive near-term capital program and a proven acquisition strategy focused on acquiring orphaned assets. The shares currently trade at 17 times’ forward earnings with a dividend yield of almost 5 per cent.
TOP PICK
Algonquin Power & Utilities Corp (AQN-T)
July 8, 2020
A very unique Canadian listed company that has over 90% of revenues coming from US markets. The majority of its cash flow comes from the regulated return side. It is a fairly small market cap in the utility space. They have made a successful strategy of acquiring unloved assets and have good organic growth as well. It trades at 17 times earnings and 10 times cash flow. A good defensive holding. Yield 4.74% (Analysts’ price target is $21.32)
Chris Blumas
Price
$17.700
Owned
Yes