Northland Power Inc (NPI-T)

Higher interest rates were really punitive for most companies in clean energy. Injuries in Taiwan and cable issues, but these are not reasons to sell. Decent value here. Projects will be accretive to revenue and earnings. Fears of Trump not being friendly to clean energy, but that's just one segment of the administration's total purview.

Its poor performance may make it a favourite target for tax-loss selling, which may actually provide a buying opportunity.

Ambitious projects sucked up a lot of capital. Projects now being completed on time and on budget. Divested assets to strengthen balance sheet. What are they going to do for growth going forward? Executive shuffles. Will be challenged for a while. He owns BLX.

Uncertainty of China next door is probably the most important issue, potential hotspot. He's been adding recently. Likes the dividend yield. Valuations in the sector have come down a long way, won't get US government support. Has a lot of international growth assets. Really good operators. 

Chart's shown weakness. Cost overruns on 2 projects. Sub-contracts out work, worker fatality in Taiwan. Without a full-time CEO and CFO. Lots of uncertainty around it, so lots of investors are putting it in the "too hard" pile. As projects come online, earnings growth and dividend will be secure. Great entry point for a great company. Great yield of 5.9%.

Had owned this a long time. He still likes their assets, offshore in Europe and Taiwan, but the market dislikes the latter. Is an attractive take-out candidate. They can divest assets in Europe or Colombia. Bad managers before, but now good, but their assets matter more and they are good. Collect the over 5% dividend and see what happens.

Loves renewable energy, the future is going green. Didn't like it a few years ago when it was trading above $40 -- too risky, multiple too high. Loves it down here, great dividend, lots of value now. He's buying on weakness.

Who's going to win the election? Green movement is out of favour now. But that's where value comes in for a value-tilt investor like himself.

Rattled by high interest and high inflation. Concerns over stability of Taiwanese Strait. Recent pullback is a chance to add. Fundamentals are sound in terms of windfarm buildout, doing an incredibly good job. Not breaking through recent lows. Have to be comfortable with certain levels of risk that aren't in other names in that space.

Performance has diverged from others due to where it's developing. For example, workers being injured in Taiwan puts investors off. Have to look through that, bit of a leap of faith.

A sexy renewable over the last decade. Big into offshore wind with delays, turbine issues, and higher interest rates. Reported a loss. Trades at 20x future earnings for a utility. He prefers CPX, with its 6% yield that grows consistently.

All utilities had a big selloff when rates were rising in 2022 and 2023. Then, as interest rates went nowhere, so did the stocks, just collecting the dividend. BOC has cut twice, Fed is probably going to start. Utilities have come up off lows, but haven't started to move up yet.

Sector got overvalued, plus interest rates didn't help. Supply shocks caused costs to rise significantly. Leader in offshore wind. Financial commitments seem to be in place. CEO and CFO are out, not sure what's going on. Cash was tight for a while, sold assets to help and to maintain dividend.

Three big projects will significantly increase results, once complete. Probably in holding pattern for a couple of years.

There was a big announcement that Brookfield renewables had a deal with Microsoft to provide a large amount of power and Northland Power, unlike others in the sector, did not see a big rebound. It has some construction risks with three projects under development. However they are all on time and on budget. As they get built the stock should go up.

A number of power companies have been hammered. Better opportunities in telcos and banks, which have also been hit. Those sectors have more stable growth prospects and better secular earnings growth, less dependent on things outside their control.

They'll have a new CEO. It's disappointed for the last 12-18 months, but it's positioned well in wind power and it's bottoming now. He's been gradually adding to this. Investors are awaiting the new CEO and the company's direction. Is concern over their Taiwan operation given geopoilitcal tensions.

Utilities suffered through 2022 because of high debt and high interest rates. Big projects coming online, would help the stock if those can get done on time. Ran up on expectations of renewables taking over fossil fuels, but these things take a long time to work out. Plus, heavily weighted to debt, same as all utilities. 

One of the major players in clean energy. Stock will move sideways for a while until clarity about interest rates. Good opportunity to buy. Utilities can be defensive in a slowing economy. Nice yield of 5.1%.

Tough year 2023. Renewables sentiment turned, interest rates rose, turbine manufacturing problems. Pretty confident they can execute projects well. Long term, renewables aren't going off the map. At these levels, lots of optionality. The riskiest of his 3 Top Picks. He owns a lot and is buying more. Yield is 4.91%.