Quick4you wrote: From Karen, she has a good history... AltaGas has been a thorn in my side, as market suspicions came to fruition yesterday, and the company seemed to direct investors to the conclusion that the dividend would have to be cut.
Although it was covered on a cash flow basis, it left little flexibility for the company to pursue its long-term growth plans, which are to focus on its growing gas and U.S. utilities businesses.
I get it.
So the stock got killed yesterday, and is now trading at 42% lower year-to-date.
But going forward, there are a few bright spots that long-term investors can focus on.
First, with its diversified infrastructure platform of high quality assets, and 80% of its EBITDA coming from contracted medium and long-term agreements, AltaGas has stability on its side.
Second, WGL’s high quality assets and market position will bring AltaGas many growth opportunities as well as significant earnings and cash flow accretion.
Finally, the recent approval of LNG Canada’s project bodes well for AltaGas stock, both in terms of market sentiment and in terms of actual volumes that will ultimately come through AltaGas Montney facilities.
Reference :
https://www.fool.ca/2018/11/01/altagas-ltd-tsxala-vs-transalta-corp-tsxts-which-dog-is-worth-a-look/