Mawer Investments increases stake in AltaGas by 1000%When I saw this post on Yahoo Finance I thought, yes and why so late to the party? They are a very conservative investment group but why now and why such a large investment since the year-end report? I went back and re-read the year-end report and looked for any hidden gems I might have missed.
Knowing Mawer's reputation for trying to pick only the best Canadian companies with a long term earnings profile I did more calculations on the new VLGC net back to AltaGas over the next 7 years. Bigger than my original arithmetic.
Add in the increasing net ownership of C3's and C4's coming from expanding Canadian Operations and the bottom line increases dramatically. Also the low Natural Gas price in Canada reduces shrinkage costs at midstream facilities. Not much for downside except long term holders cashing out on run-up.