Algonquin Power & Utilities Corp T.AQN.PR.A

RBC- Sentiment: Negative

[longkk]

RBC views Algonquin Power & Utilities Corp.'s recent decisions reflect a cautious, financially conservative strategy.
By prioritizing debt reduction with the $1.6 billion net proceeds from the renewables sale, the company is focusing on balance sheet strength, which may disappoint investors hoping for substantial share buybacks.
The 40% dividend cut to $0.26 per share and a restrained capital spending plan further signal a focus on stability over growth.

The ongoing regulatory challenges, including the $1 billion in assets not yet authorized into rates, contribute to a delayed realization of earnings potential.

While these moves may ensure long-term financial health, the market's negative sentiment stems from the perception that Algonquin is overly cautious, prioritizing risk management at the expense of immediate shareholder returns.

 

[BSdetector2016]

Sentiment: Hated Which means the entire shareholder base needs to turn over, and the rest of the market suddenly catch amnesia, for it to bottom and eventually recover. I'll never consider buying it again; BoD and management too weak...

[rusty777]

I agree - sort of - yes it's hated, and yes it is unlikely to recover anytime soon....but.....it's not because Management and the BoD are "too weak" but rather they have NO moral compass - it's all about what they can suck oout of the company for their own personal benefit rather than what they can do to make the company better. Sad - but it sems to be the way many companies