If you want to know more read below... You buy a stock based on what is going to happen in the future and guidance, thats why I got in, and if you read below I dont see anything that is going to be negative and any reason to sell now when they have projects coming online in 2017 and dividend increases expected. If you take the time to read whats going on then you can see value is appreciating and hence the share price action. This below is news from a while back......
The enhanced cash flow per share from this Transaction supports a dividend increase of $0.04 per share to $0.88 per share annually upon completion of the Transaction, which is in addition to the further dividend increase of approximately 6% to 7% we expect when South Hedland is fully commissioned in mid-2017. The Portfolio is highly contracted and provides additional cash flow diversification. The associated Offering and AIMCo Investment will increase the float size of the Company and improve liquidity for investors and we are pleased to have AIMCo joining as a key shareholder of TransAlta Renewables," added Mr. Gellner.
"Since its creation in 2013, TransAlta Renewables has proven itself a very strong player in the renewable energy space," said Kevin Uebelein, AIMCo Chief Executive Officer. "AIMCo has a demonstrated track record of placing strategic investments in significant infrastructure assets around the world. Our team of professionals is looking forward to working with the team at TransAlta Renewables to find ways to collaborate in their future growth and success."
Investment Highlights:
- Long-term, highly contracted Portfolio underpins significant increase in cash flow and enhances customer diversification
- Approximate 3% expected increase in cash available for distribution ("CAFD") per share over the near term and longer term periods
- Represent a price to CAFD of approximately 10x
- Dividend increase of approximately 5% ($0.04 per share on an annualized basis) upon closing of the Transaction
- Significantly increases the public float
- TransAlta Renewables receives a Right of First Offer to invest in growth projects related to the Portfolio
- Potential for future growth from behind the fence power customers at the Sarnia facility for both power and steam
- TransAlta, as majority sponsor and manager, maintains significant ownership of TransAlta Renewables
Upon completion of the AIMCo Investment, the Offering and the financing of the Transaction, but before giving effect to the over-allotment option, TransAlta will own approximately 65% of the outstanding shares of TransAlta Renewables. TransAlta's interest will be reduced to approximately 64% if the over-allotment option is exercised in full.