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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi Peter and Staff
I hold a small position in CPX in my utilities group. Wondering how you feel about KWH.UN that I do not own as a replacement or would you suggest I keep CPX or sell CPX and look elsewhere entirely in a different sector as I own all the other usual recommended suspects in this sector.
Read Answer Asked by Dennis on May 12, 2016
Q: Good Morning: I have held cpx.pr.a for some time and my cost is well below the 25.00 issue price. However, there seems to be unrelenting pressure on this pref. and I'm left wondering whether or not there is something here that I'm not aware of. Do investors/analysts wonder about the ability of Capital Power to stay in business? The current yield on the pref. in question is very high and yet it does not reset again until nearly 5 years from now. I would appreciate your comments about this pref. and whether or not you see it as a buy, sell or hold at this time. With thanks, Don
Read Answer Asked by Donald on January 27, 2016
Q: Hi Peter and Staff
Did well on this initially by buying in low $20's and sold off a bit at a gain at $26 ish,now under water big time of the rest. Small Position....once Transalta started down (I sold), it never stopped for a long time.....many blamed it on bad management. How big an impact how soon is the Alberta coal changes going to affect their FFO and can they adjust their business plan enough to make me enjoy the dividend now and hope that even if my capital loss does not reverse itself quickly, it does not get bigger?
Thanks for all you do
Dennis
Read Answer Asked by Dennis on November 27, 2015
Q: Peter, Do you still see capital power as a good stable performer? It appears to me that with coal being phased out by governments, probably sooner than we might have thought, it does not bode well for this company as it has many coal fired plants. Have owned it for years and really has been a poor performer. Thanks for your answer, Ken
Read Answer Asked by Ken on October 29, 2015
Q: Just wondering if your position on CPX changed since May 20. How would you rate the stock today (buy/hold/sell)? CPX is now less than 2% in my portfolio and I am approx 20% down on this stock. I like the dividend but the stock chart worries me - it's been steady downhill YTD. I know that the last quarter was bad due to facility outage, but the stock price is likely to go down even more due to tax loss sale, it seems like an ideal candidate... Do you consider the dividend safe? If yes, I have no problem holding it for a few years. If not, should I take a loss and switch to a better name (???) in the same sector?
Thanks.
Read Answer Asked by Michael on October 14, 2015
Q: Re the recent drop, there is concern that the new government in Alberta may phase out coal by 2020. Capital Power's coal plants will last at least 10 years longer so this would be a significant hit to the value of their capital. addition: On my earlier question,I stated that the NDP platform favored closing coal plants in 2020 - it should have read, 2030. CPX plants are expected to be operational to 2040 - they are in good shape - so if the government follows through it will be a negative and require higher capital spending.
Read Answer Asked by John on May 22, 2015
Q: There was a 5.5% drop for CPX today with no news for the stock and no downgrades... Any idea what could have caused it? The stock seems to be on decline and it is 9% down YTD and almost 20% lower that it was at its highest point in Aug. 2014. I have about 2% position in CPX, do you suggest to take any actions or just patiently wait for recovery?
Read Answer Asked by Michael on May 20, 2015
Q: Hello 5i, Could you comment as to the recent events at Capital Power.
- EPCOR reducing their shares of the company by 9%.
- Capital Power announcing that they will be buying back up
to 5 million common shares.
- Capital Power eliminating their drip
Also is this company having financial issues, Your opinion of this company as a buy sell or hold.
Thanks
Read Answer Asked by Michael on March 30, 2015
Q: In your answer of Nov 12 2014 you suggested that spending now for future growth is keeping the share price down. I would like to now when these new projects will contribute to price appreciation and possible dividend growth. How save is the dividend at this time.
Thank you for your terrific work
Albert
Read Answer Asked by ALBERT on February 18, 2015
Q: What do you think about Capital Powers current cash flow position, particularly its negative Free Cash Flow and negative Net Free Cash Flow?


Cash Flow From Ops. 426 375 401 415
Capex – Maintenance 943 225 112 112
Free Cash Flow (508) 77 151 157
Capex – Acquisitions (595) (9) 0 0
Cash Flow From Financing (240) (70) (150) 22
Div./Distr. To Common 62 83 138 146
Net Free Cash Flow (153) 17 1 179
Read Answer Asked by Gregory on November 12, 2014
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