John KimNorthland Power IncNPI.TOHOLDSep 25, 2019

She owned it before last year's dividend cut which was unnecessary, a long-term decision to fix a short-term problem (an off-shore wind project in Taiwan). She didn't like what they said on investor day. They have risky assets in Spain and Colombia. They have to monetize some of their long-term contracts at some point. Lots of issues. The new CEO is doing the best she can (the problems were under the old CEO). She held onto it past $20 because it's now at $24. They just reported a good quarter. Their Taiwan and Poland projects are on schedule, which is good. New managers need to prove themselves. Not sure if she will hold onto this long-term. Wait and see.

The chart is consolidating and could go sideways for a long time. You can trade this stock. But if it broke out (possible, maybe), it'd probably hit $36.

Problems last year with dividend cut, shares bottomed ~$16. Story now is that things weren't that bad, just some delays in Taiwan. Dividend cut was a conservative measure. Stock's recovering.

Expects positive news from projects as the year goes on. Beyond that, needs to see a cohesive strategy. He's being patient. If management can deliver on the show-me story, he'll stay long.

The chart is an ascending triangle, well-supported, and forming a really nice base, with higher lows. $25 is resistance; if it reaches that, it would be a nice technical breakout. Given volatility in the market, these stocks look attractive.

Renewables have a good, long-term growth story. Got hit pretty hard.

It has based, so no more lower lows and lower highs. Currently, it's still in a base, but if it breaks above $25, you're off to the races and could return to $40. Buy it through $25.

It depends -- on your time horizon and your return expectations. Laggard in renewables. Execution challenges. Recent dividend cut. Looks cheap, so worth a second look. 

His preference in the space is BEP.UN.

It fell recently, because of announced project delays. It's probably an opportunity now. A good, consistent company though a little more volatile than typical utilities. Fundamentals remain good. Keep an eye on this project. Stock is cheap due to this pullback.

Global clean-power producer, mostly back by long-term contracts. Delays in offshore wind have hurt confidence, forcing a reset in expectations. Roughly 40% dividend cut, stock's fallen. Painful, but likely necessary to protect balance sheet. 

What matters now is management laying out new 5-year plan focusing on disciplined growth -- higher return hurdles, and funding projects without issuing equity. Long-term backdrop still supports the name. Sees upside from here, but wants to see more consistent execution before considering it. Ranks 9/10 fundamentally. Analysts see ~23-24% upside.

History of spending a lot of money on development, getting it going, and then committing to another big project that requires a lot more capital. Every shareholder is losing $$ right now, and just wants to see it get back to their entry price so they can sell. Move on.

In general, with long-term interest rates staying high, it's very difficult for companies that are very capital-intensive. Cost of financing long-term debt is onerous.

While dividends may not be important to some, the the large dividend cut has impacted total return, but also sentiment towards the company. Utilities are supposed to be stable. We saw AQN cut once, then twice, and the stock was in the doghouse for years. This could, potentially, be NPI's future. Considering its business, earnings have been more inconsistent than we would have thought. Could it bounce? Certainly. Lower rates can help. But with its small size and debt, we would prefer a larger company with a higher yield and fewer legacy issues, such as PPL, BEPC or ENB. They also have good potential under the same conditions. We do not 'hate' it, but think selling and moving on is still the best option here. We are big believers in momentum, and it may take a while for NPI to get its mojo back.
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It's back to its February low of $17, which offers good risk/reward and a place to hang your hat on. That's the best you can say. Though, if you bought at $26, it's painful to see such a sharp drop. Is down 10% this year, not terrible. So, now is an opportunity, but if it breaks $17, then exit.

It has issues and has had a fair amount of disaster. Interest rates have hurt it. It is one of the biggest renewables in the space but there are better opportunities in this area.

So unfortunate. It was one of her Top Picks for a long time. She doesn't have all the answers, and was blindsided just as the rest of the investment community was. 

A few weeks ago, they announced earnings a few days before their investment day. Taiwan project taking longer than expected, needing an additional injection of capital over 1-2 quarters. Cut dividend 40%. At investor day, you'd have heard her questions on the dividend. Answers weren't the most straightforward, so her team met with management one-on-one. Personally, Rebecca didn't think dividend needed to be cut. It really breaches trust with shareholders. She'd rather have seen asset sales or equity issued.

She and her firm are long-term investors. Could accept the Taiwan delay, as these things happen. But abrupt dividend cut showed lack of transparency. They haven't sold their shares yet. Assets are worth more than what it's trading at right now. She's not buying more. Her team is currently analyzing what to do.

Not a fan. Too much enthusiasm went into the renewable energy companies. In 2022 they all went up like rockets, and in 2023 they all came down. Younger investors tend to back green energy, got overvalued, coming back to roost. He's cautious on the whole sector.