BNN TOP PICK AGAIN Douglas Kee, income investor, says he just took a position for his clients at $30.30. He is looking for dividend growth going up 5% / year up to 10% per year in 2014 as 3 big Hydro projects come on. One of those projects is a 60 year contract with BC Hydro with unprecedented future consumer price inflation indexing. John O'Connell who has chosen ALA as a top pick twice in the last month said the big dividend funds have not picked up ALA yet - perhaps Kee is one of the first.
The effect of the acquisition by AltaGas of Pacific Northern was not addressed but we know it increases both the customer and rate base of ALA.
In general Kee noted that the pipeline companies are off across the board, due perhaps to funds who did some window dressing before year end now switching back into other equities. This may be a short term opportunity in a relatively stable, high yield industry, considered part of the Energy industry but not as subject to the effects of commodity prices. The "Gas" in ALA's name may have unnerved some investors yesterday.