Algonquin Power & Utilities Corp (AQN.TO)

It has issues with rising interest rates and there has been a management change. It plans to sell its renewable power division but this is not a good time to be selling. Also it is not likely to increase its dividend.

He once owned it, but got stopped out. Is definitely consolidating and is finding support, but this consolidating isn't confirmed. Hold off on buying it now, but if this moves into a range, you can buy it and hope it breaks out.

Controversial pick, but sticking with the name given fundamentals of company. 2/3 regulated utilities (water) are very attractive assets. Excellent long term value. Assets very hard to replicate. May be one more dividend cut, but believes a good time to buy. 

Following its dividend cut last year, AQN underwent a strategic review and is hoping to sell its renewables division. Activist investors got involved, and the CEO took the fall and exited the company. It now has an interim CEO. The current interest rate curve has not been good to the sector at all, and most are down a lot. Analysts note also that high rates likely mean AQN will get less for any asset sale. Lots of uncertainty here is the likely reason for the decline. 
Unlock Premium - Try 5i Free

If you're holding it in your cash account, don't be afraid to sell and trigger a loss that can be used to offset some gains. Company is still in repair. If you have a capital loss, sell and move on.

Debt profile changed. Dividend level is fine now, but he models flat growth. CEO transition. Cheap relative to peers, but not as cheap as ALA with less hair on it. Don't sell now, but when you get a chance to, you can move to another name.

The stock might be range bound as it plans to sell its renewable business. Much will depend on how much it gets. The initial investor reaction was somewhat negative. If interest rates peak, which they appear to be doing, the stock should do better. We would give this until year end, and then consider the possibility of a tax sale (if applicable) and then a reconsider in 2024. 
Unlock Premium - Try 5i Free

NEE is the biggest American utility, much bigger than AQN. NEE has a huge business in electricity (Florida) which is much more stable than AQN's green energy. NEE does have a renewables business though in the US and Canada, and this holds promise. The grid will continue to get greener over time. A consistent earner and has been meeting or beating quarters much more consistently than AQN. 

Current share price a good time to buy.
Sees long term value in business (10 - 15 years).
Base assets (utilities) valuable.
Upside to current share price. 
Capital appreciation expected given fundamentals of business. 

Company is committed to the dividend, but it's an unexciting 5.6%. Valuation is 13.4x PE. He's modelling negative 8% EPS growth. Doesn't love it here, though it will be fine over time. Better places to put money. See his Top Picks.

They sold their position earlier this year. It continues to have some debt issues from an acquisition. It is spinning off its renewables which make up the high growth side and the CEO is leaving. It pays a 6% dividend but there have been too many mis-steps.

The sector is fairly interest-rate sensitive, so it's sold off. One of his preferences in the sector, and it all has to do with a good growth outlook. 

He used to own it. The stock is trying to base. If it breaks out, it might return to old support around $16.

No. It's probably bottoming here. Difficult to see much upside. Activists want divestitures, keeping it as a pure regulated utility. Very uncertain whether assets can fetch good prices. Renewable multiples have come down dramatically. Put your money elsewhere.

He added shares on their downturn some months ago. The good thing with utilities are their regulated rate of return--this is essential to remember. Renewables have suffered cost increases and performance problems, but it's mostly been a sentiment-driven thing. Once confidence returns, AQN will be a higher stock.