RE:StrangeJohnwith30years wrote: How BMO analyst has an outperform rating and positive comments after Petrogas sale on Ala then says earnings might disappoint two days ago but also argues exchange rates may be a factor on some midstream's due to strength in US dollar.
He is usually quite good and after his report ALA backed off a bit so hope he's dead wrong about this quarter. Still he has 30+ targets in place along with outperform.
Due to the regulated nature of utilities, there is some delay in catching up when costs increase. Under the cost of service model, they will get back everything plus interests, but when reporting earnings, they will have a temporary hit (which will be completely returned in future rates and be compensated by higher future earnings).
That could explain the comment. If I wasn't clear enough in my explanation, just let me know.