RE:RE:Why heck sale so many shareswhen2buy wrote: I have had AQN on my Watchlist for some time as a new position consideration. It was clearly obvious the post-March SP appreciation could not be justified on EPS outlook alone combined with the $500M USD ATM (7% potential dilution to 2022). Significant Insider selling in the $18+ range confirmed my belief but clearly there was more to the story with the release of the $900M CDN Share offering(s) (immediate 10% dilution).
It's not difficult to calculate an appropriate entry now (much lower than Friday close), but I have a new concern of company goverance given the latest issuance fiasco.
For now, it will continue on my watchlist but the SP would have to be significantly lower to be a compelling risk/reward as additional corporate goverance risk has to be accounted for.
Still believe this (as most of the market) will drift lower over the summer. Renewables in general have been drifting lower as earnings estimates go lower and PE ratios enter into Tech growth territory.
Bushman3333 wrote: This is stupid, they could borrow money for less than 3% interest, and the Company would way ahead,
It seems to me that you have everything a**backwards. I've heard some say that AQN did well to be able to raise that amount considering the current market and economic uncertainties. What's more, you are focusing entirely on the dilution effect of the new shares but you don't seem to understand that that money will be used for expansion purposes most likely in the area of renewable energy which will result in higher earnings per share in the years ahead despite the dilution. You don't like the renewable sector but it will be greatly assisted by the probable election of Joe Biden who wants to turn away from oil and gas as sources of energy.Do you pay any attention to politics? Finally, if you can't see that a dividend yield near 5% is very attractive especialy considering that there will be more increases in the dividend coming as the company continues to grow, there is something wrong with you.
In regards to Bushman's stupid remark, the reason that AQN issued stock instead of selling more bonds is because its debt to equity ratio is already on the high side and continuing to load on more debt would risk its credit rating. I'm still shaking my head at all the stupidity I've just read in only one post. Whentobuy and Bushman -- two people who know absolutely nothing about corporate finance and it shows.