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AltaGas Ltd T.ALA

Alternate Symbol(s):  ATGFF | T.ALA.PR.A | ATGPF | T.ALA.PR.B | T.ALA.PR.G | ATGAF

AltaGas Ltd. is a Canada-based energy infrastructure company that connects natural gas and natural gas liquids (NGLs) to domestic and global markets. The Company’s segments include Utilities and Midstream. Its Utilities segment owns and operates franchised, rate-regulated natural gas distribution and storage utilities, which includes four utilities that operate across five United States jurisdictions. It Utilities segment also includes storage facilities and contracts for interstate natural gas transportation and storage services, as well as the affiliated retail energy marketing business. Its Midstream segment includes global exports, which includes its two LPG export terminals; natural gas gathering and extraction, and fractionation and liquids handling. Its Midstream segment also consists of natural gas and NGL marketing business, domestic logistics, trucking and rail terminals, and liquid storage capability. Its subsidiaries include Wrangler 1 LLC, WGL Holdings, Inc. and others.


TSX:ALA - Post by User

Comment by Johnwith30yearson Feb 27, 2021 2:42pm
207 Views
Post# 32679535

RE:Quite disturbing...

RE:Quite disturbing...Bossu:  I think your analysis is quite right about it being a safer and better company than a few years ago and Randy has done an excellent job and it looks from guidance that he will continue to do so. I think many investors dont appreciate the balanced strategy of utilities with gas exports and the historical worries over this company are just now really fading.  Yesterday the stock got caught in a major downdraft that hit nearly everything including the darling of the utilities FTS,  but ENB and EMA and others also stopped dead in their tracks.  Fears of interest rates create a knee jerk reaction against utilities as others compare bond yields etc with where else they can put their money.   I do think ALA is NO LONGER an attractive stock to SHORT and I see gradual upward movement . In fact I think the negativity is overdone and added to my position at the lows on Friday.  It will be interesting to see how various analysts view this.  Nice to see BMO have an outperform rating but I think some are concerned that they do not see many catalysts for significant growth and others want more of a green exposure to their portfolio.

However I think value gradually wins out and I do not rule out my 24 target by year end especially  as their export strategy bears ever more income. I expect we may see some improvement even over the next week as larger players do their homework. Given the political risk of line 5 with ENB just now even with its higher dividend I moved some of my ENB over to ALA.   If  debt gets below 5 times or MVP  gets up and running - either of those should bump the stock but this stock is for long term holders and not quick traders.  I still see it as the Outperform among utilities but I also was disappointed and without the overall market fears around interest rates I think their results would have seen a bump.
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