RE:Hmm... those results didn't seem to impress anybodymaldwyn wrote: Flat growth doesn't really cut it when you are yielding less than AQN and have political risk.
I've sold some earlier this year as the Q1 results were predictable. The new PPA on San Jacinto was going to lower revenues and EBITDA. The ramp-up in Peru would increase revenues a bit but wouldn't be able to make up for the lower PPA on San Jacinto.
However, they are sitting on over $100M in USD cash for acquisitions or project development. It's a bit disappointing that they've been sitting on cash for a while without making a move.
As to the comparison with AQN, the payout ratio on cashflows isn't the same, so the yields can't be compared directly. Polaris pays out about 25% of its cashflows in dividends while AQN pays out about 50% of its cashflows. At the "new" run-rate, Polaris generates around $2.40 (USD) per share in cash, so approx 16% of the share price as I write this ($18.35). AQN generates around $1.24 (USD) per share in cash, so approx 8% of the share price. Thus, Polaris trades at 6x net cash flow vs AQN at 12.5x net cash flow. The political risk and lower diversification discounts the price of Polaris by about 50% when compared to AQN, despite the same yield.