Algonquin Power & Utilities Corp (AQN.TO)

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.

Company not performing well lately. Long term outlook for business is still "in tact". Believes company has future and could be a good time to invest. Utility and power assets have a strong future. Would recommend as a 5 year hold. 

Renewable power and utilities, both businesses have been hammered by interest rates. Debt and payout ratio were unsustainable. Cut dividend. Too many other, better opportunities out there.

Rising interest rates hard on business (debt costs going up). Cuts on interest rates not coming as quickly as anticipated. Would wait before buying. Might be a technical bottom soon. 

Doesn't see a lot of growth in the next couple of years. For income stocks, wants to see visibility to cashflow growth to fund dividend and possibly increase. Hasn't yet sold renewable power division, not a great environment for that.

It is in both the alternative and standard energy space but is selling its renewable assets. He is not sure of the prices these will bring in at this point. It could rebuild but big investments are needed in this space. Input costs are higher now and the industry needs electricity prices to go higher.

Tough period the past few years with high debt and poor management. Company needs major overhaul on assets. In the meantime, would not buy shares. High capital requirements with returns not high enough to justify risk. Better names in the sector.