Algonquin Power & Utilities Corp T.AQN

BUY NOW

[Sukhi19]

You can not go wrong if you buy below $8.

[DeanEdmonton]

Suhki - someone said the same thing at $12, $11, $10, then $9. Long and short. this is going to run in the ditch until a clear path forward is articulated and significant change in performance is evident. They also need to change out at least a chunk of the board members. Cheap compared to previous price does not guarantee it goes up a bunch anytime soon.

[DeanEdmonton]

Still headed downhill like a Bob Sleigh. Higher for longer rates on top of REALLY poor leadership is not this stock's friend.

[Capharnaum]

For the utility portion, higher long term rates means higher returns on equity. It is of course delayed since it depends on when they submit rate cases. For example, if rate of return included in the rates was 9% when long term rates were at 2%, then it will be 12%+ with long term rates at 5%+.

[bmbruce]

imo..we also have to consider the real possibility of continuing inflation and weak growth going forward... in such an enviroment utility companies may face challenges getting meaningful ROE increases approved by regulators wary of exacerbating recession risks and reduced consumer purchasing power… utility companies  will need to justify moderate ROE adjustments as critical for investment and

[Capharnaum]

That's not how regulated utilities work. Regulators approve rates based on ROE required to keep investors investing in the infrastructures. In its most simple term, a utility is a financial arrangement where costs are passed as is to the customers with allowed return on investment at long term bonds rate + implied risk premium. Regulators can't disallow costs, they can only push them

[bmbruce]

my point is that the relationship between the rate of return (ROE) included in utility rates and long-term interest rates is not always as straightforward as the statement “For example, if rate of return included in the rates was 9% when long term rates were at 2%, then it will be 12%+ with long term rates at 5%+.” suggests….while it is generally true that higher long-term rates can influence an