Q: Hi Team,
Last month company issued equity at US$30.35 to acquired the renewal assets of Duke Energy. At the moment the units are trading below offer price. Do you see any upside in near future in its unit price if someone buys it now?
Is it a better choice over TCL.A or Alta Gas considering the growth and dividend increases in future? TCL.A and Alta Gas are different companies but both are dead for the past some years.
Your Views please.
Thanks
Last month company issued equity at US$30.35 to acquired the renewal assets of Duke Energy. At the moment the units are trading below offer price. Do you see any upside in near future in its unit price if someone buys it now?
Is it a better choice over TCL.A or Alta Gas considering the growth and dividend increases in future? TCL.A and Alta Gas are different companies but both are dead for the past some years.
Your Views please.
Thanks
5i Research Answer:
We would consider BEP to be a 'much better' company overall than both ALA and TCL.A. TCL has low growth and high debt, and ALA has cut its dividend in the past (we have ALA comments posted yesterday). All three stocks are somewhat sensitive to interest rates. BEP is up 12% YTD and we think has good potential for gains and distribution hikes as the interest-rate-hike cycle peaks.