AltaGas Ltd T.ALA

Just cashing some ...

[bossu]

But I have a ton of ALA and just cashing a few !

[Johnwith30years]

Don't do it Bossu unless you are planning to buy back before the ER.. there is strength here.

[bossu]

Read  back my post ''just cashing some'' because my position is still heavy and I like what I'm seeing this morning. By the way I had another letter from the ALA investor relation relative to Petrogas revenue and as you can see on the last 2020 annual financial release where we coud read that from the time they announced the formal signature of the deal to the end of

[Johnwith30years]

Fun to play with your figure - Imagine every 16 days the revenue is 143 million  - then for a full year that is 22x 143 =3,146 M  and if 15% of that is earnings that becomes 471.9  million minus your 225 =246.9 or .88 cents a share more than you expected.  With an P/E of 12 that would become $10.56 value per share more than you expected.... Although fun that is too high. Either

[bossu]

Johnwith30years No matter what is the additional top line revenue we have an idea of the EBITDA contribution from Petrogas caquisition. By the way I did the same calculation and the $ 143 M for 15 Days is ''misleading''and this is why I truss more the expected EBITDA below.... «Assuming reasonable LPG exports from Ferndale in 2021, the current forward curves and other

[Johnwith30years]

Yes  I am aware which is why I said just for fun but how did they get to 143M for 15 days?

[bossu]

From SEDAR MD&A    (Management Discussion & Analysis) Page 99 «Upon completion of the Petrogas Acquisition, AltaGas began consolidating Petrogas. For the period from close of the transaction through December 31, 2020, Petrogas has generated approximately $143 million in revenues and $3 million in net income after taxes. » Call Randy ! «

[Johnwith30years]

This is clearly not a reliable guide to the future  No one is interested in operating at just 2.09% profit after taxes!   There may hav ebeen a large one time tax bill to settle as the hurdle rate for most companies is going to be at least 15% profit on such sales.