Northland Power Inc (NPI.TO)

Has sold off because there is speculation that their dividend may not increase and the payout ratio may not come down below 100% due to an acquisition. It is a dividend story and now a portfolio being diversified through acquisition. If they complete the acquisition it will be a better entry point. Should be 5% lower.

His company has a $19 target on this with an “outperform”. Likes the 7.2% yield and this is a really good entry point.

Their North Battleford Creek asset is coming into service this year, which reduces pressure on the payout ratio. Thinks it is worth $19-$20. Looking to make a huge acquisition off the coast of the Netherlands, an offshore wind farm. 6.6% yield.

Used to own years ago. Most companies in this space are a good buy now on weakness.

He likes that management owns about 30% of the company. Renewable energy and well distributed. Natural gas, Hydro and wind. Current yield is 5.6%.

Still solid value. You could probably step into it here at a 5.8% payout.

Payout ratio had been very high. Nearing completion on a couple of projects that should add to cash flow and materially reduce the payout ratio so he is going to take a closer look at this going forward. Generally the gas powered power generators are names he has not traditionally owned because the power purchase agreements are coming due and the recontracting process has usually led to a lower cash flow per unit.

(A Top Pick Sept 28/11. Up 25.28%.) Good name but he is reducing his holdings because the valuation is beginning to look stretched.

(A Top Pick Sept28/11. Up 20.71%.) Independent power producer primarily through natural gas. Excellent management team. Good pipeline. Trimming his holdings in the order of 20%.