Algonquin Power & Utilities Corp T.AQN

KPC Acquisition

[Dibah420]

"Kentucky Power currently operates two regulated electricity generation facilities (the Mitchell coal generating facility in West Virginia and the Big Sandy natural gas generating facility in Kentucky)"


Iam scratching my head. Why in October 2021 would anyone buy a coal plant (+debt) which will be shut down pronto?

[SargeX]

Total bummer!! I had really hoped they wouldn't go ahead with this. What a mess and what a totally stupid thing to do. AQN had been one of my all time favs having first bought at $5.55 in Nov, 2011. It no longer is and after it bounces back a bit after tomorrow's massacre, I'll be trimmig it from a full position to a mid-position. This is quite significant for us as we currently only

[nitehawk66]

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[apollojetic]

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[Dibah420]

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[SargeX]

Son of a gun, I should have learnt from ALA and listened to myself back in Oct, 2021 (see below). I always thought the Kentucky Power take-over was a bone-head move but I had somehow eventually convinced myself that AQN could handle the financing. Man was I wrong. My wife & I are actually still just above water price wise with an initial purchase price of $5.55 and average of $11.77. We have

[born2trade]

Thanks Sarge . Hope you are keeping well .  It is good to know you are not throwing your towel on this one yet.  I am thinking to initiate a position and it looks like a falling knife today.  Perhaps market is already pricing 50% dividend cut . What is your outlook for stock price because many retirees will not be happy own it at 4% yeild when inflation is over 7% and GIC is

[SargeX]

Hey B2T Nice to hear from you. All is going great over this way. I hope all is well with you as well. My wife & I currently have an average yiled for our portfoilio of 5.54%. I prefer over 4.5% (except banks) but am actually fine down to 3%. Over the last year or two, I have decided to sell any stock if the yield gets below 3% so even with a 50% diivy cut, AQN would still be qualify as a

[hawk35]

Hey Sarge. Sorry for your pain today but I know your portfolio holds a lot of winners so today's pain is minor in the grand scheme of things. Think your right that management will trim the div by about 1/3.  Also think they will suspend the DRIP and come up with more "non core" assets to sell.  Should hear more about that in the new year. There are some who are trying to

[fakmiz]

Your right Hawk35. I believed Motley Fool on AQN and got in at a highter price. Down 28% from cost and, while I'm a bit upset it's only a small part of my portfolio. I have others that are doing very well. I will however keep AQN for the long term dividend as I am a retiree and like the return. I will watch the price going forward closely and will consider averaging down. As they say "

[SargeX]

Hey Hawk Just back in town after heading out Friday morning so slowly catching up. (I never do any internet stuff when I'm out of the house. Heck, I don;t even own a smartphone  :-)  Thanks for the comment on the pain. It's actually no big deal. Sh*t happens. We do own 14.430 shares so it was a bit of a spanking but that's the way it goes. As mentioned, we're actually

[AlwaysLong683]

I too got caught with ALA when they were in the midst of acquiring WGL and had to arrange financing, plan for the sale / joint venture of some of their existing assets, and get approval from I think it was 3 utilities commissions (D.C., Maryland, Virginia) to which they had to promise all kinds of goodies to get the go-ahead. WGL was a good asset, but the price paid for it all-in was messy and too

[SargeX]

Hey Always We also hold a full position in EMA, FTS, and CPX and really like all 3. I also really like your Green vs Brown comment. As I mentioned, renewables are a totally flawed joke with the lack of reliability, not being able to recycle so many compenents, being costly as far as pwer generation goes, needing so many rare minerals, etc, etc, etc. ALA is the most disappointing stock I've

[Capharnaum]

They are playing the regulated assets game. They bought the rate base at a 1.3x multiple (which is low relative to other transactions) and they'll invest in the rate base to convert the coal generating facility to "green" energy, increasing the rate base to generate better future cashflows.

[gimebackmymoni]

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[rustyblades]

Page 9 of their presentation shows the potential for a large improvement on the ROE to match other Kentucky utilities, increasing from 6.6% to 9.3%. Also a reduction in the time between rate case applications from 33 months to 24 months.

[gimebackmymoni]

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