Opinions
Michele Robitaille
Capital Power L.P.
CPA.UN-T
BUY
May 22, 2009
Looking very cheap right now. There is some concern about the distribution but she is comfortable they will be able to maintain the 21% yield. Edmonton Power has announced another spin out of another entity, which raised the question of what was going to happen to this one.
$12.600
Stock price when the opinion was issued
electrical utilities
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COMMENT
Have about 20 power facilities in Canada and the US. Recently cut its distribution with their payout ratio at about 75%-80%. Their parent recently spun off another entity Capital Power, which has a lower payout ratio but greater growth prospects. It also owns 30% of this company. The 2 may merge in 2011.
electrical utilities
HOLD
Payout ratio went from 67 to 112 and down from $20 to $18.93 in about a week. Is it a Sell? When the payout goes beyond what they can afford, you know something is going to happen. Chart trend line looks like it is holding at about$19, the level back in September/October. Likes the utilities sector.
electrical utilities