RE:RE:What l have said, many investors abandoned aqn due to CEO Hey Def
I actually think most of this is actually on the new CEO. I've seen this story play out a few times now where a new CEO comes in and thinks he's a BTO (Big Time Operator) and piles on a punch of debt just for the sake of growing (and getting his bonuses).
ALA used to be one of my favs but when Harris came in as CEO, he completely ruined an excellent Canaidan compnay by over-paying for a terrible asset (WGL). They then had to see most of their best assest and cut their dividend vy 56%.
I totally think Kentucky Power is a terrible asset and that's a lot of new useless debt. I actually would not be surprised if AQN ends up having to cut their divy.
Another example of a stock I sued to own is IPL building Heartland on thier own.
There's a few more os these type of stories and they usually end up poorly.
Ciao
Sarge
Defiance2050 wrote: Undertaker why are you so upset? How do you normally handle short term price volatility? 2018 pipelines, December 2018 tarriff spat, individual days of panic like last friday?
Was it the CEOs fault for the ice storm in Texas? Was it his fault that anything to do with renewables has been selling off since then.
Look at comparables for the last tear Fortis is flat or up by 10% for 52 week low. Other pure utilities are flat and are trading at lower multiples than AQN.
From AQNs 52 week high it is down 20%. Of that factor 10% in for Texas impact and roughly 10% on the cost associated for issuing shares and it evens out to flat.
Even if you say 10% is due to the pending acquisition, it is following AQNs long trend of issuing shares for acquisitions and development of assets.
Since you have an obsession with Altagas congratulations for picking up a dead cat bounce. The sell off with the dividend down to low teens was overdone. Even though they have sold assets at a lower cost it was viewed as a positive. Altagas in my opinion has values in their assets high 20s low 30s (depending on when you look at it).
Since 2014 and the subsequent overleveraged ALA acquisitions it is still down 50% since then. AQN went the other direction and is up 100% since then.
You could have used Transalta or Capital Power as examples but it is all examining time perspective. Utilities as a whole have under performed since April 2020 and are roughly flat to February 2020 prices.