Superb Entry PointI love this stock - a beaten down regulated utility! Bash away if you want but you're being Penny foolish as the saying goes. Now that tax loss season is over look at the facts:
1. Regulated utility - this is conceptually costs plus a return on capital. So when cost of capital (interest rates) rise then so do the allowable return rates for utilities. Short term lag only until the next rate adjustment.
2. Tax credits - timing issue only. These will arrive in due course.
3. Kentucky Power acquisition - probably the biggest opportunity. If approval is stalled because of keeping utility rates low for the consumer then - after the April deadline - Algonquin is in the best position of anyone to buy at a lower market price based on the revised DCF at today's cost of capital! Splendid position to be in. And if they are smart enough to go floating rates when interest rates peak next year they will enjoy the windfall when rates start to decline.
I see nothing but upside on this. Oh yeah - management has bought in the $12 a share range. We can buy at sub $9 a share. Don't you think it'll get back to $12 a share in a relatively short time? The bargain basement prices can't last long. And you can collect the divi in the meantime.