SargeX wrote: Hey Karl
I really think most of this is isolated. AQN already had a lot of debt and then went and over-paid for a bad asset in KPC, then issued a bunch of shares to compound the problem.
First off for self-disclosure,, we own a full position of AQN, CPX, EMA, and FTS. We used to own a full position of ALA, NPI, BEP.UN, and BIP.UN. We owned a bit of RNW for a short period but bailed quickly as I don't like TransAlta and came to my senses. We've never owned CU nor ACO.X as they never looked quite "right" to me.
FTS is the most stable and conservative of the bunch so no worries there. EMA has quite a bit of debt and has the Nova Scotia issue (which I think is already baked in). Historically, EMA has tended to trade at least a $1 higher than FTS and right now it is $2.40 lower. We've actually been adding a bit to EMA recently.
I had also steered clear of CPX because of the coal side but got interested when I was looking for a spot for the cash from selliing all our ALA back in the fall of 2020. My research seemd to indicate that they were doing a masterful job of moving away from coal so I moved all the ALA cash to CPX starting at $29.07. Obviously, a very nice move. We've also been adding a bit to CPX including today.
As I mentioned recently, we sold all of our BEP.UN and NPI in late 2020/early 2021 and did incredibly well with it. As I also mentioned, I think renewables are totally flawed and that's why we bailed.
Lastly, we bailed on BIP.UN as I got tired of all the "financial engineering" they seem to do. We also did incredibly well with it.
So, bottom line - really like CPX, EMA, and FTS, hate renewables, think ALA is still b*ggered with WGL's aging/needing mucho maint pipelines, and don't like Brookfield (I actually keep expecting to wake up one morning and find that Brookfield has finally been caught for doing something illegal. :-)
Ciao
Sarge
Karl63 wrote: I wonder if Algonquin is an isolated case, or if there are other utilities similarly at risk that we're not aware of yet? I own AQN, but also FTS, EMA, BIP.UN, CU and the infamous ALA which I just bought recently. I also have some of the renewables including RNW and BEP.UN.
Generally I feel better with larger cap companies, yet find I have an unusally large position in CU, a smaller utility, not sure why. I imagine many own much the same things, any concerns?