Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Northland Power Inc (Ontario) T.NPI

Alternate Symbol(s):  NPIFF | T.NPI.PR.A | T.NPI.PR.B | NPICF

Northland Power Inc. is a Canada-based global power producer focused on helping the clean energy transition by producing electricity from clean renewable resources. The Company owns and manages a diversified generation mix, including onshore renewables, natural gas energy, as well as supplying energy through a regulated utility. Its facilities produce electricity from clean-burning natural gas and renewable resources such as wind and solar. The Company’s segments include offshore wind facilities, onshore renewable facilities, natural gas facilities, and utilities. The Company’s natural gas facilities use turbines to produce electricity. It owns or has an economic interest in approximately 3.4 GW (net 2.9 GW) of operating capacity. The Company also has an inventory of projects in construction and in various stages of development encompassing approximately 12 GW of potential capacity. It operates power infrastructure assets in Asia, Europe, Latin America, and North America.


TSX:NPI - Post by User

Post by Red_Deeron Apr 11, 2022 3:42pm
131 Views
Post# 34594738

VEGO knows NOTHING,,,,,,,,,,,re:Chickens Coming HOME

VEGO knows NOTHING,,,,,,,,,,,re:Chickens Coming HOME
Utilities Have Been Soaring as Treasuries Get Crushed. That Isn’t Supposed to Happen.
   
By Jacob Sonenshine/BLOOMBERG
April 11, 2022 
 
Investors often seek out utility stocks as a haven because demand for power is relatively stable. Above, a Consolidated Edison van in New York City.
 
 
Utility stocks have soared recently, while yields on Treasury bonds have done the same. The two aren’t supposed to rise at the same time—and now it seems utility stocks will struggle in the short run. 
 
Normally, utility stocks and long-dated Treasury yields move in opposite directions. When the 10-year Treasury yield rises, it makes the dividend yield on a utility stock—a favorite option among people seeking steady payouts with little risk—relatively less attractive. That gives investors a reason to dump utility stocks.
 
At the same time, higher Treasury yields also reflect expectations for high inflation, a result of a strong economy, in the future. When the economy is growing briskly, investors often abandon utility stocks for those whose earnings are more likely to rise significantly in response to greater demand for goods and services. 
 
That isn’t what is happening now: Utility stocks have risen alongside Treasury yields. The Utilities Select Sector SPDR exchange-traded fund (XLU) has risen just over 18% since Feb. 23, the fund’s low point after weeks of declines. The yield on 10-year Treasury debt, meanwhile, has jumped to 2.71% from 1.73% just after the end of February.
 
The rise in both utility stocks and Treasury yields makes sense given today’s economic landscape. Investors expect the Federal Reserve to reduce its bondholdings as part of an effort to raise interest rates on debt of all sorts—short- and long-dated—as it seeks to bring inflation under control. The potential that the central bank will hold less debt is weighing on prices for Treasurys, which sends yields higher.
 
The likelihood that the Fed’s efforts to control inflation will slow the economy significantly, perhaps bringing on a recession, meanwhile, is prompting investors to rush into defensive stocks like utilities, which see stable earnings growth even when economic growth slows down.
 
“The market expressed these macro fears through positioning with investors bidding up the more-defensive sectors,” wrote Christopher Harvey, chief U.S. equity strategist at Wells Fargo, mentioning utilities’ move higher. 
 
Now, utility stocks appear to be due for losses in the near term. First off, at just under $77 a share, the utility fund trades at almost $10 above its 200-day moving average. That is, roughly speaking, the highest dollar amount above that average the fund has traded at since the late 1990s, according to BTIG data.
 
The shares’ explosive move away from their longer-term trend is a sign they are due to slide. “Utilities are likely to pullback in the near-term,” wrote Jonathan Krinsky, chief market technician at BTIG. 
 
That makes sense given valuations of stocks in the fund. Its aggregate forward price/earnings ratio is about 10% higher than the 19.5 times for the S&P 500, according to FactSet. Utilities often trade at a slight premium to the S&P 500 during times of high economic uncertainty. In early March 2020, the utility fund traded at a multiple about 20% above the S&P 500’s; historically, utility valuations tend to peak right around this level. 
 
If a pullback does come, buying some shares might make sense. The utility fund is expected to achieve aggregate earnings-per-share growth of almost 8% in 2023—and by the end of this year, the stocks will be reflecting that earnings stream.
 
The comparable figure for the S&P 500 is 10%, but earnings estimates for the S&P 500 could decline if the economy slows down. Morgan Stanley
 
strategists just upgraded the utilities sector to Overweight, partly because the sector has seen some of the lowest variation in their profit estimates out of all of the index’s sectors. 
Utilities could provide portfolio protection once they pause from their recent run. 
 
<< Previous
Bullboard Posts
Next >>