Innergex Renewable Energy Inc T.INE.P.A

Free Fall

[RusticHit]

This so called energy stock is in free fall while Oils are Mooning  why ???

[tomperns]

Maybe because with rising interests they can no longer service that big pile of debt and keep the dividend in place. This is going to $10 if they cut dividend.

[Stratocheif]

As I said before, this company has zero equity. Take "intangables" off the balance sheet ant there is nothing there...even negative equity now that the price has fallen. It's all smoke and mirrors. This company is 100% owned by the bond holders. If they cut the dividend, people will wake up to this and it won't go to 10. It will go to 1. Seen it many times before. People bid up

[tomperns]

Bingo! A growth story going nowhere. If rates where low, the acquisitions/debt/goodwill has legs on the EBITDA growth, but with rising rates, this one is in trouble. Just a matter of time before they cut the dividend.

[wkrpradio]

So much doom & gloom. In reality renewable power projects often get lower interest rates that are backed by governments and are guarenteed a high rate of return.  P.S I bought some more shares yesterday at $14.51 and already am ahead by 5 % .   

[tayson]

More accurately, interest rate increases will not impact earnings as the projects have long term financing. Interest rate increases will impact future growth, especiallly for projects that have an existing PPA but have not secured finance (unless management was wise enough to enter into an interest rate hedge). Projects without a PPA will now need a higher PPA price to be viable but will be