Q: hi,
I am contemplating selling AQN. do you have any guess as to what sort of upside potential ( in percentage ) in the short term there may be for any actions (asset sales? restructuring? etc etc )spurred on by the "activist investor". so far, there has been nothing of significance in this regard, and the stock price reflects this, I think? if selling, I was thinking of adding to my BEPC to make close to a full position. do you still think BEPC has decent growth potential, and will weather any further rate hikes? is the balance sheet fine still?
cheers, Chris
I am contemplating selling AQN. do you have any guess as to what sort of upside potential ( in percentage ) in the short term there may be for any actions (asset sales? restructuring? etc etc )spurred on by the "activist investor". so far, there has been nothing of significance in this regard, and the stock price reflects this, I think? if selling, I was thinking of adding to my BEPC to make close to a full position. do you still think BEPC has decent growth potential, and will weather any further rate hikes? is the balance sheet fine still?
cheers, Chris
5i Research Answer:
We would be fine with a swap to BEPC if one only wants to own one of the two. While not immune to rates or the market, we would consider its ability to weather whatever happens to be pretty good overall. With AQN, much, or nothing, could happen. A total sale of the company might fetch $13ish. But asset sales could improve the balance sheet and see more than that, over a longer period of time. It is a cheap stock at 13X earnings, but there have been reasons for that.