Algonquin Power & Utilities Corp (AQN.TO)

Tough go due to capital structure and cost overruns. Needs to get the dividend, cashflow, and balance sheet straightened out. Not looking at right now. If you own, consider harvesting a tax loss if you can and redeploy into other names.

Likes the power space in general. See his Top Picks.

Today's disappointments are tomorrow's opportunities. He's looking at water utilities, a business that won't go away. He's waiting for a plan from the new management team. Once we get it, the stock will re-rate back to an acceptable range, with double digits over 5 years very possible.

Company attempting to right the ship. Transition into utilities without renewables. Q3 a little lower than expected. Share price not cheap, but could be better options out there. Would recommend holding and/or selling for tax loss. 

It's sold off a lot. Utilities tend to improve when interest rates fall. Pays 5.5%. At the end of the day, people need to pay their utility bills, in booms or recessions. AQN holds $16 trillion of assets, so it's not a small company. They've done well historically, including a beat in their last quarter. The street rates this a hold, but sees 30% upside to $8.50. She wants to see a turnaround first, but its on her watch list. AQN ranks 7/10 for fundamentals and 10/10 in value.

After asset sale 6 weeks ago, announced not going to reduce debt or buy back substantial stock. Stock's moved sideways. Pressure from hedge fund to buy back shares, rather than redeploy $$ elsewhere, has not subsided. Wait and see. 

Underperformed. Sold wind and solar assets at a really good price. Going forward, will grow 5-7%. Disappointed by stock price performance, but you can't own assets any cheaper than this. Holding while she waits for more clarity.

Rough waters, has not been an easy hold. Pressured by interest rates, dividend cut. A lot of negatives baked into the price. He looks at it from time to time for his clean energy portfolio, but isn't quite there yet. More interesting at these lower valuations. Doesn't consider takeover potential as a rationale for long-term investing.

It has had a wild ride and may be in a position of basing. Shouldn't be too bad. It is OK for the dividend.

He's not the right guy to ask about M&A and whether a Suncor would purchase them. Exiting green energy caused downgrades. He owns, likes it bigger picture, but is evaluating. 

he sold it a year and a half ago - It has too much debt. It has cut its dividend twice in the past year. It is now just a regulated utility after the sale of its renewable power division and some think it was not at a good enough price.

Don't catch the falling knife. Challenged. Dividend cut, high debt levels, restructuring. Positive steps being taken. He needs to see restructuring follow through, debt reduced significantly. 

This could be held long term since there should be a re-rate opportunity with new management coming in and cleaning up the balance sheet. It could be similar to the recovery of Alta Gas.

Sold some time ago when debt load became problematic. Even with stock decline, other names in the utilities space she'd prefer. A potential sale of renewable power division still hasn't happened.

Pretty good dividend yield of 7% for income, seems safe. Trading in a range. Not exciting if you want any kind of capital gains.

It has 2 businesses: renewables and regulated utilities. AQN trades under 12x PE whereas a pure-play renewable or pure-play utility would trade a lot higher. AQN has changed management and aim to optimize their assets. He sees a lot of value here, so he has actually added to it. He sees a plan in place to realize value, and it's trickling through. There are plans to spin off or sell the renewable business to return to being a pure utility. The market isn't giving AQN any credit, so AQN sits in the penalty box because of past management mistakes.