Hydro One

H-T

Analysis and Opinions about H-T

Signal
Opinion
Expert
PARTIAL SELL
PARTIAL SELL
February 19, 2020
He buys utilities to generate income. Yes, they are boring, but this sector has had an incredible run in the last 12 months. This is overbought now and would take profits. Also, the yield has dropped to 3.3%, which is a negative.
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Hydro One (H-T)
February 19, 2020
He buys utilities to generate income. Yes, they are boring, but this sector has had an incredible run in the last 12 months. This is overbought now and would take profits. Also, the yield has dropped to 3.3%, which is a negative.
DON'T BUY
DON'T BUY
January 22, 2020

Ontario's current government has made many changes to the Hydro board, a gong show. He is wait-and-see with Hydro and prefers Emera as a utility, which offers better growth and doesn't suffer government meddling. At its core, though, Hydro is a great business as a regulated utility.

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Hydro One (H-T)
January 22, 2020

Ontario's current government has made many changes to the Hydro board, a gong show. He is wait-and-see with Hydro and prefers Emera as a utility, which offers better growth and doesn't suffer government meddling. At its core, though, Hydro is a great business as a regulated utility.

DON'T BUY
DON'T BUY
December 16, 2019

They've done well this year, especially with less government influence. He prefers AQN, Fortis and BEP in this space who have better growth and offer wider diversification. H-T is Ontario-centric. It's okay if you hold it.

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Hydro One (H-T)
December 16, 2019

They've done well this year, especially with less government influence. He prefers AQN, Fortis and BEP in this space who have better growth and offer wider diversification. H-T is Ontario-centric. It's okay if you hold it.

DON'T BUY
DON'T BUY
October 22, 2019
As a dividend stock Fine as a dividend stock, but not fine as a stock. They tried to do a US acquisition, but found out they couldn't. They have large capex, too. Dividend is safe and has been doing better lately than he expected, but that could be a result of a yield play. Doesn't interest him.
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Hydro One (H-T)
October 22, 2019
As a dividend stock Fine as a dividend stock, but not fine as a stock. They tried to do a US acquisition, but found out they couldn't. They have large capex, too. Dividend is safe and has been doing better lately than he expected, but that could be a result of a yield play. Doesn't interest him.
DON'T BUY
DON'T BUY
October 9, 2019
Pays a good yield, but there isn't much growth. She wants utilities for the yields but also cash flow growth. The Ontario government still owns 47% of this company so it's possible they could sell down and get involved in the company's operations.
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Hydro One (H-T)
October 9, 2019
Pays a good yield, but there isn't much growth. She wants utilities for the yields but also cash flow growth. The Ontario government still owns 47% of this company so it's possible they could sell down and get involved in the company's operations.
COMMENT
COMMENT
October 8, 2019

Sell half of my holdings and buy a utility? It pays a 3.9%. The shares have done well since they abandoned a bid to buy a Washington utility. There's little growth here, though. He prefers Capital Power which is a little riskier and pays a safer dividend. Also look at Innergex or a REIT, if you want income.

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Hydro One (H-T)
October 8, 2019

Sell half of my holdings and buy a utility? It pays a 3.9%. The shares have done well since they abandoned a bid to buy a Washington utility. There's little growth here, though. He prefers Capital Power which is a little riskier and pays a safer dividend. Also look at Innergex or a REIT, if you want income.

WEAK BUY
WEAK BUY
July 8, 2019
This was supposed to be a sleepy, easygoing utility. They did a deal in the US that was not seen that positively. It trades at a discount now. He thinks the discount is warranted due to management, who needs to be trusted. They need to articulate their strategy and then have some wins. He is seeing better opportunities than this one.
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Hydro One (H-T)
July 8, 2019
This was supposed to be a sleepy, easygoing utility. They did a deal in the US that was not seen that positively. It trades at a discount now. He thinks the discount is warranted due to management, who needs to be trusted. They need to articulate their strategy and then have some wins. He is seeing better opportunities than this one.
COMMENT
COMMENT
June 28, 2019

H vs. CU Hydro One had serious issues, but a decent dividend. If he had to pick one right now, he'd pick CU. Looks a bit steadier. Hydro One is in nosebleed territory, and looks as though it's starting to come off. CU is consolidating, and looks to go higher short-term. $35 is a good stop level to sell CU, $22 for Hydro One.

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Hydro One (H-T)
June 28, 2019

H vs. CU Hydro One had serious issues, but a decent dividend. If he had to pick one right now, he'd pick CU. Looks a bit steadier. Hydro One is in nosebleed territory, and looks as though it's starting to come off. CU is consolidating, and looks to go higher short-term. $35 is a good stop level to sell CU, $22 for Hydro One.

DON'T BUY
DON'T BUY
May 16, 2019
It is a lot of natural gas, compared to other renewable energies. It has a fairly low environmental score. They are not a leader or ahead of the curve in transition to renewable.
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Hydro One (H-T)
May 16, 2019
It is a lot of natural gas, compared to other renewable energies. It has a fairly low environmental score. They are not a leader or ahead of the curve in transition to renewable.
DON'T BUY
DON'T BUY
March 13, 2019
He owns Fortis, Emera and NPI, so he has enough utilities. The business in Ontario is good with possibility of expansion. But the problems with the Ontario goverment scare him off. Good dividend, but weaker dividend growth than its peers.
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Hydro One (H-T)
March 13, 2019
He owns Fortis, Emera and NPI, so he has enough utilities. The business in Ontario is good with possibility of expansion. But the problems with the Ontario goverment scare him off. Good dividend, but weaker dividend growth than its peers.
DON'T BUY
DON'T BUY
February 22, 2019
It needs to break out of a very sideways chart that happened through 2018. There was a slight downtrend before that. Doesn't see a catalyst to spark a breakout.
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Hydro One (H-T)
February 22, 2019
It needs to break out of a very sideways chart that happened through 2018. There was a slight downtrend before that. Doesn't see a catalyst to spark a breakout.
TOP PICK
TOP PICK
November 21, 2018
There was a change of government in Ontario. The CEO and Board left but that cloud over the company is fading away. They provide distribution and transmission of electricity. They are trying to make an acquisition of a US company. If the US acquisition comes to fruition, the Ontario province stake becomes lower. The concern of political interference is overdone. Yield = 4.7% (Analysts’ price target is $20.92)
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Hydro One (H-T)
November 21, 2018
There was a change of government in Ontario. The CEO and Board left but that cloud over the company is fading away. They provide distribution and transmission of electricity. They are trying to make an acquisition of a US company. If the US acquisition comes to fruition, the Ontario province stake becomes lower. The concern of political interference is overdone. Yield = 4.7% (Analysts’ price target is $20.92)
BUY
BUY
November 15, 2018
Things have settled down on this stock now after a rocky summer. Its yield is stable. He sees this as a decent larger-cap play.
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Hydro One (H-T)
November 15, 2018
Things have settled down on this stock now after a rocky summer. Its yield is stable. He sees this as a decent larger-cap play.
DON'T BUY
DON'T BUY
November 14, 2018
A political mess. A typical utility with a 3.5% dividend that should grow. But with high electricity rates in Ontario, no he wouldn't touch this.
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Hydro One (H-T)
November 14, 2018
A political mess. A typical utility with a 3.5% dividend that should grow. But with high electricity rates in Ontario, no he wouldn't touch this.
BUY
BUY
October 23, 2018

The stock suffered pressure when Ford wanted to be elected. The stock is undervalued. They are closing on a financing. They are buying a large utility in the US. He thinks this will make it a more valuable company. He owns convertible bonds on this company.

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Hydro One (H-T)
October 23, 2018

The stock suffered pressure when Ford wanted to be elected. The stock is undervalued. They are closing on a financing. They are buying a large utility in the US. He thinks this will make it a more valuable company. He owns convertible bonds on this company.

DON'T BUY
DON'T BUY
September 21, 2018

There is always a debt concern about this stock. They have replaced the Board and the revenue is controlled by the government. He is scared by the private-public ownership. He would choose another utility and avoid the potential government involvement. Yield 4.6%.

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Hydro One (H-T)
September 21, 2018

There is always a debt concern about this stock. They have replaced the Board and the revenue is controlled by the government. He is scared by the private-public ownership. He would choose another utility and avoid the potential government involvement. Yield 4.6%.

TOP PICK
TOP PICK
September 17, 2018

H.IR-T Investment Receipts. They are tied to Hydro 1. They issued them as part of their US acquisition. It is not clear whether this transaction will actually close. These receipts give you protection in that scenario. You either get shares of H-T or your money back. The price momentum has started to improve on these, 4.7% yield. He likes these receipts as a better way to play the deal. It should happen between now and the end of April. (Analysts’ target: $21.58).

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Hydro One (H-T)
September 17, 2018

H.IR-T Investment Receipts. They are tied to Hydro 1. They issued them as part of their US acquisition. It is not clear whether this transaction will actually close. These receipts give you protection in that scenario. You either get shares of H-T or your money back. The price momentum has started to improve on these, 4.7% yield. He likes these receipts as a better way to play the deal. It should happen between now and the end of April. (Analysts’ target: $21.58).

DON'T BUY
DON'T BUY
September 17, 2018

With the Ontario government still owning a big part of this, he's avoided it. There's no difference between the old and new boards. A U.S. acqusition is on hold, perhaps out of worry--the new board has to decide whether to go ahead or now. Their transmission side is coming up for regulatory hearings next year which could be difficult.

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Hydro One (H-T)
September 17, 2018

With the Ontario government still owning a big part of this, he's avoided it. There's no difference between the old and new boards. A U.S. acqusition is on hold, perhaps out of worry--the new board has to decide whether to go ahead or now. Their transmission side is coming up for regulatory hearings next year which could be difficult.

DON'T BUY
DON'T BUY
September 6, 2018

Don't touch it with a ten foot pole. It is a mix of public and private ownership. There is a lot of debt. Revenue is controlled by the government. This one is too political for him to get into.

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Hydro One (H-T)
September 6, 2018

Don't touch it with a ten foot pole. It is a mix of public and private ownership. There is a lot of debt. Revenue is controlled by the government. This one is too political for him to get into.

BUY
BUY
August 16, 2018

Always a debt concern with this stock. Market appears to have given thumbs up on new Board. Evaluations have been crushed on this stock, but now there is stability. He likes the yield on it. There is some political uncertainty with this name. Yield of 4.8%

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Hydro One (H-T)
August 16, 2018

Always a debt concern with this stock. Market appears to have given thumbs up on new Board. Evaluations have been crushed on this stock, but now there is stability. He likes the yield on it. There is some political uncertainty with this name. Yield of 4.8%

DON'T BUY
DON'T BUY
August 3, 2018

He would wait on this one -- with changes on the Board and it being a relatively new company. There are other companies in the same space guaranteeing dividend increases going forward. He would look to other utilities instead.

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Hydro One (H-T)
August 3, 2018

He would wait on this one -- with changes on the Board and it being a relatively new company. There are other companies in the same space guaranteeing dividend increases going forward. He would look to other utilities instead.

DON'T BUY
DON'T BUY
July 26, 2018

It is a yield play. He sees very little growth on the horizon. PE is almost 16 times. He prefers EMA-T because there is an appreciation potential and a slightly better yield.

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Hydro One (H-T)
July 26, 2018

It is a yield play. He sees very little growth on the horizon. PE is almost 16 times. He prefers EMA-T because there is an appreciation potential and a slightly better yield.

DON'T BUY
DON'T BUY
July 24, 2018

The market doesn’t like the uncertainty associated with this company, which includes a change of management (in progress) and delay of approval of their planned acquisition of another business in the USA. He thinks the stock is overpriced relative to expected earnings growth. It has negative free cash flow. Dividend coverage is good but with negative cash flow, he doesn’t expect dividend growth.

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Hydro One (H-T)
July 24, 2018

The market doesn’t like the uncertainty associated with this company, which includes a change of management (in progress) and delay of approval of their planned acquisition of another business in the USA. He thinks the stock is overpriced relative to expected earnings growth. It has negative free cash flow. Dividend coverage is good but with negative cash flow, he doesn’t expect dividend growth.

WATCH
WATCH
July 23, 2018

Their Avista take over approval is being delayed. Doug Ford fired the board and a new one is coming in. He was disappointed to see this happen. The underlying assets in the business are pretty good. There is controversy to see what happens with the new management coming in. This one could present an opportunity for investors in the future.

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Hydro One (H-T)
July 23, 2018

Their Avista take over approval is being delayed. Doug Ford fired the board and a new one is coming in. He was disappointed to see this happen. The underlying assets in the business are pretty good. There is controversy to see what happens with the new management coming in. This one could present an opportunity for investors in the future.

WATCH
WATCH
June 28, 2018

He does not like it because it is a bond proxy. It is interest rate sensitive. He thinks interest rates bottomed at BREXIT and will go higher from here. They are highly leveraged and got more so with an acquisition they made south of the boarder. He is taking a wait and see approach. We'll see if Ford changes the executive compensation. H-T is a slow grower and not particularly well operated. He does not know if the CEO wage is egregious. It pays to be wary of initial IPOs.

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Hydro One (H-T)
June 28, 2018

He does not like it because it is a bond proxy. It is interest rate sensitive. He thinks interest rates bottomed at BREXIT and will go higher from here. They are highly leveraged and got more so with an acquisition they made south of the boarder. He is taking a wait and see approach. We'll see if Ford changes the executive compensation. H-T is a slow grower and not particularly well operated. He does not know if the CEO wage is egregious. It pays to be wary of initial IPOs.

DON'T BUY
DON'T BUY
May 30, 2018

He thinks the Ontario election could cause some danger. This has been a political football for many years. There has been mismanagement of the hydro assets, which has resulted in dramatically higher rates over the past 12 years. Are you really buying a private company, when the government still owns over 40%. They have been attempting a US acquisition, which may face delay if there is a new government. Shareholders have a chance of being treated poorly following the election. An NDP government may look to purchase the privately held shares but would not likely re-purchase them at the issued price of $20.50 per share.

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Hydro One (H-T)
May 30, 2018

He thinks the Ontario election could cause some danger. This has been a political football for many years. There has been mismanagement of the hydro assets, which has resulted in dramatically higher rates over the past 12 years. Are you really buying a private company, when the government still owns over 40%. They have been attempting a US acquisition, which may face delay if there is a new government. Shareholders have a chance of being treated poorly following the election. An NDP government may look to purchase the privately held shares but would not likely re-purchase them at the issued price of $20.50 per share.

WATCH
WATCH
May 28, 2018

They have a lot of debt on their books. The trend is pretty clear here right now. Politically, you have to wait to see who wins the election. There are some issues there with excessive executive pay. The Government still owns 47% of this company.

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Hydro One (H-T)
May 28, 2018

They have a lot of debt on their books. The trend is pretty clear here right now. Politically, you have to wait to see who wins the election. There are some issues there with excessive executive pay. The Government still owns 47% of this company.

DON'T BUY
DON'T BUY
May 10, 2018

There is limited history here. The stock is drifting. Great company. You could have a good company with a bad stock. If it gets below the psychological $20 value, you have to get worried.

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Hydro One (H-T)
May 10, 2018

There is limited history here. The stock is drifting. Great company. You could have a good company with a bad stock. If it gets below the psychological $20 value, you have to get worried.

HOLD
HOLD
March 7, 2018

Holds Fortis and Northland Power instead. Hydro One's dividend is safe and will increase. Yes, they are expanding in the States, but they are beholden to the Ontario regulator. So one bad call from this regulator and they're in trouble. Stick with it if you own it. They're challenged like all utilities due to interest rates rising.

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Hydro One (H-T)
March 7, 2018

Holds Fortis and Northland Power instead. Hydro One's dividend is safe and will increase. Yes, they are expanding in the States, but they are beholden to the Ontario regulator. So one bad call from this regulator and they're in trouble. Stick with it if you own it. They're challenged like all utilities due to interest rates rising.

DON'T BUY
DON'T BUY
February 15, 2018

Debt levels are high and you don’t know that they are doing with acquisitions. It is hard to argue about the safety of the dividend. But it is not a growth stock in the next number of years.

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Hydro One (H-T)
February 15, 2018

Debt levels are high and you don’t know that they are doing with acquisitions. It is hard to argue about the safety of the dividend. But it is not a growth stock in the next number of years.

COMMENT
COMMENT
December 6, 2017

Has its challenges in Ontario. Made an acquisition in the US which should help, but still has a few challenges. He is on the sidelines for this one. Prefers companies that have diverse geographical regulators. Dividend yield of 3.9%.

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Hydro One (H-T)
December 6, 2017

Has its challenges in Ontario. Made an acquisition in the US which should help, but still has a few challenges. He is on the sidelines for this one. Prefers companies that have diverse geographical regulators. Dividend yield of 3.9%.

COMMENT
COMMENT
September 20, 2017

He is pretty positive on this. You see a lot of trend of Canadian companies going down to the US to buy assets. It is a very long cycle, which is why the receipts are a good thing in terms of if it doesn’t happen. The conversion will result in dilution, but you are getting paid to wait. Thinks it will work out well.

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Hydro One (H-T)
September 20, 2017

He is pretty positive on this. You see a lot of trend of Canadian companies going down to the US to buy assets. It is a very long cycle, which is why the receipts are a good thing in terms of if it doesn’t happen. The conversion will result in dilution, but you are getting paid to wait. Thinks it will work out well.

HOLD
HOLD
September 5, 2017

It is stodgy, and is worth holding in this quiet market. Did a US acquisition.

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Hydro One (H-T)
September 5, 2017

It is stodgy, and is worth holding in this quiet market. Did a US acquisition.

BUY
BUY
August 23, 2017

He has big positions in other utilities. It has done well coming out of the chute. They were challenged in their growth, but now they have made an acquisition.

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Hydro One (H-T)
August 23, 2017

He has big positions in other utilities. It has done well coming out of the chute. They were challenged in their growth, but now they have made an acquisition.

COMMENT
COMMENT
July 21, 2017

This is a company where the government sets its rates, takes its cash flow. The flexibility that management has within Ontario is limited. You have to ask yourself, are you really buying equity or just buying a participation with a right to a dividend as it goes along. Making a US acquisition gives them an outlook for growth, and hopefully earn a better return on equities.

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Hydro One (H-T)
July 21, 2017

This is a company where the government sets its rates, takes its cash flow. The flexibility that management has within Ontario is limited. You have to ask yourself, are you really buying equity or just buying a participation with a right to a dividend as it goes along. Making a US acquisition gives them an outlook for growth, and hopefully earn a better return on equities.

COMMENT
COMMENT
July 11, 2017

This closed at $22.70. He has a model price of $24.01, a 5% upside. More importantly, it pays a 3.88% dividend. It would be nice if this pulled back to $21.38 which would give it added support. 3.58% dividend yield.

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Hydro One (H-T)
July 11, 2017

This closed at $22.70. He has a model price of $24.01, a 5% upside. More importantly, it pays a 3.88% dividend. It would be nice if this pulled back to $21.38 which would give it added support. 3.58% dividend yield.