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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: 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
Q: Hello Peter and Team,
I have to choose between Capital Power (CPX)and Long Run Exploration (LRE) for income primarily, but with the objective of adding steady growth. I currently own CPX and had previously owned LRE but sold it over concerns of Debt/Equity. Your recent postive comments in regards to LRE having the debt under control and that the dividend being relatively secure has tweaked my interest. Either one, as I have to pick one over the other is part of a well diversified portfolio of which this position would represent a weighting of aprox 2.5% . My investment horizon would be 2 to 3 years. Thanks as always for all you do for us!
Rick
Read Answer Asked by Rick on August 07, 2014
Q: Hi 5i: Just a quick note on Helen's Capital Power Preferreds vs Commons question. CPX did not increase the common's dividend "to 7.9%" (of the share price). They increased it "by 7.9%" (of the existing dividend amount), from $0.315 to $0.34 per quarter. No need to publish if already noted elsewhere. Thanks.
Read Answer Asked by Lance on August 06, 2014
Q: I bought Capital Power CPX.PR.A preferred shares. Should I have bought instead CPX Capital Power, not the preferred. They keep going up and they increased dividing to 7.9%. The preferred just keep going down. I thought buying the preferred would be safer but there is no gains with them, only losses. Thanks.
Read Answer Asked by Helen on August 06, 2014
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