RE:RE:RE:RE:RE:RE:RE:STARBOARD VALUE...Upping the antelongkk wrote: malx1 wrote: bmbruce wrote: malx1 wrote: bmbruce wrote: AQN's recent stock price decline from $10 to $7 was primarily a result of the substantial and unforeseen escalation in borrowing costs and debt financing rates….further exacerbated by AQN's significant debt load….it was not "orchestrated" or manipulated lower" to purposefully unsettle less confident investors….it is essential to consider the performance of ICLN, the global clean energy index, which has also experienced a significant 30 percent drop over the past three months due to similar underlying factors….this decline can be attributed to the natural and expected reaction to evolving economic conditions, particularly the rapidly rising cost of debt financing, and should not be construed as a deliberate manipulation of the stock price...
Nothing unforseen about it.
Only people who didn't see higher rates were high school kids in Ontario and recent MBA grads in Vancouver.
...It seems that Starboard Value, possibly comprising a mix of high school students from Ontario and recent MBA graduates in Vancouver, did not anticipate the abrupt increase in borrowing costs and debt financing that occurred after their July proposal to adopt an activist stance with AQN, involving the acquisition of an ownership stake of approximately 7.5%...
You never see a takeover go bad?
I'm sure Starboard is a wonderful group of NY money managers.
They make mistakes too. Same as you!
Bigger picture:
Debt costs have hammered the profitability of many Renewable Power assets.
You forgot, the Pandemic ended in 2021 and BoC overnight rates are not 0.25% now.
Wake up, man. You're losing.
Show me a Renewable Power Co that's posted a trailing 12mo positive return and I'll eat my sock.
Best move for you Bagholders here is sell this junk and buy BEP.un.
BEP a buy now.
Malx1, could you please share your view on the current investment potential of BEP.UN in the context of the rising borrowing costs and their impact on profitability within the renewable energy sector? Do you believe it's a favorable time to buy, considering the possibility of these costs continuing to rise?
If you're asking me to provide an opinion on the direction of interest rates.
Upside might be 1% if energy prices fall. They ain't.
Downside will be maybe 1% from here if Canadian real estate and construction collapses. Which it is.
I'd say, hold your nose and jump into the swamp.
BEP.un will do well from this valuation.
AQN could outperform over a ten year period I'd they don't get acquired.
But if I had $100k to invest today in one renewable power company, I'd pick BEP.un
The BOD and execs at AQN have FAILED. Look at share price. End of story.
The bagholders here will call me a dummy, that's fine. They are -30% on their cheap shares.
My favourite stock is Gamehost Inc, (GH), they are getting ready to double their dividend within 9 months. Dividend growth is the way to go. Always impressive.
With AQN I could see a new board and management suspending the divend until they get their ship together. Decent assets, totally mismanaged.
So you guys have your own money and objectives. Do what's best for you.
I just see a long series of failures here.
Money is mobile. When people mess up, you exit and find a better company to invest in.
No excuse for the muckups this group has created. They royally messed up.
Your call from here.