Northland Power Inc T.NPI

The chickens have come home to roost

[Vega1357]

NPI and the other renewable energy stocks have finally taken note of the sharply higher government bond yields and are reacting by going the only logical way they can -- down.

[Dibah420]

US  T  10 y    2.76%              5       2.77              2       2.48 If you're happy to tie up your money for 10 years,  good for you.  Just make sure your "roosted" chickens don't come out charred.

[Vega1357]

I won't be tying up my money for any period of time. However, if government bond yields keep on trending higher that will provide competition for dividend paying stocks like NPI whose dividend yield is currently 2.87%.

[Karl63]

I don't think anybody buys a renewable as a bond proxie, there are better companies out there for that, including conventional utilities and telecoms (which aren't doing too badly today).  I'm not sure why the renewables are having a bad day, but I never try to question the short term logic of the stock market - that's a losing proposition.  It could be as simple as the

[AAJJRR]

Vegass likes to bash a stock until he buys in, then voila, pump away until he sells, repeat, repeat, repeat...

[Vega1357]

The renewables generally follow the utilities index which dropped over one percent today. 

[Dibah420]

******************************************************************************************************************* Agreed.  My sense is that  nervousness in renewables is merely a milder reflection of the tribulations among  political leadership everywhere.  Inflation, thanks to Mr Putin's cruel follies in Ukraine, has risen to be the top panic.  Climate change?