Algonquin Power & Utilities Corp T.AQN

STARBOARD VALUE...Upping the ante

[bmbruce]

Oct 19 (Reuters) - Algonquin Power & Utilities Corp : 

 

 STARBOARD VALUE LP REPORTS 8.8% STAKE IN ALGONQUIN POWER & UTILITIES CORP. AS OF OCTOBER 17 VERSUS PREVIOUS STAKE OF 7.6% AS OF JULY 20- SEC FILING

 

[Accountprince]

Wow what a vote of confidence from Starboard Value!  These guys don't do anything but make money.  Happy to be riding on their coattails.  Read their presentation - very informative.  They spend lots of time discussing the two components - regulated and non-regulated businesses - they separate them quite intentionally.  Not the right time currently to sell the non

[bmbruce]

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

[malx1]

Nothing unforseen about it. Only people who didn't see higher rates were high school kids in Ontario and recent MBA grads in Vancouver.

[bmbruce]

...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%...

[malx1]

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

[longkk]

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?  

[malx1]

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