Bruce Campbell (1) Capital Power CPX-T HOLD Aug 13, 2020

Owns it in his income growth fund. Very good asset base, high regard for management. Excitement around potential of data centres. Getting extended, he trimmed by about 1/3 once it got over $50. Good hold for the dividend.

Not a bad idea. Whole sector has done really well on AI themes. Issued equity at $58 to improve balance sheet for accretive M&A. Good company. Dividend's not what it was, as the price is so much higher. 

You can see from the chart that taking profits is wise, but TD may not be the best choice. Choose BMO instead.

Took off in second half of this year due to Alberta government announcing data centres. But it's only a letter of intent at this stage. Alberta makes sense because its power plants are under-utilized and power is cheap. She wants more clarity on whether tech companies will want to build there.

Likes the assets and growing diversification. Stock took off on speculation. Wise to take some profits.

Next downside potential is ~$49 (the 200-day or 40-week MA). The big runup on the chart is part of the whole AI derivative trade. There was support around $60, and it busted through that by 15% in one day on Monday's DeepSeek news. Uptrend has been broken, the bounce is over, downtrend likely by another 10% to resume and head to $49.

You could sell a bit here and buy back around $49. If you're looking to buy new, just sit on your hands and wait till then.

He likes growth, and utilities don't usually provide that. Stock's down to just below 200-day MA, so watch that. Defensive, given what's happening around the world. Only 5-6% earnings growth beyond 2025. May make sense for income investor looking for yield. Yield is 5.5%.

In the fall, stock really moved up on excitement over data centres. He took his position from 6% down to 3%, rolling proceeds into NPI. But now it's at the top end of his buying range. 

Major US acquisition; his partner and son, Jamie, tells him there's a bucket of FCF in there. Haven't completed all their homework, but he suspects they'll buy more if it gets to ~$43-44.

Renewable power assets all across the US and Canada. Natural gas is big for them; also wind, solar, and battery. Numbers reported this morning came out well ahead (by 17%) of consensus. Managed costs effectively in the quarter. Likes the management team. Yield is 5.11%.