Atlantic Power (NYSE: AT)
Atlantic Power is another merchant power company. However, the crossroad this Canadian company faced was more severe than Exelon because Atlantic Power is far more reliant on open market electric prices. With long-term contracts set to end, Atlantic Power was forced to cut its dividend.
Essentially, new contracts would have been much less generous than the old ones, leaving it unable to pay its distribution. The cut hit the shares hard, which is where the opportunity resides. A share price in the low single digits and a dividend yield hovering around 8%, however, is an opportunity, but it is also a statement to the risks here.
The company's new direction is to sell assets in an attempt to move more aggressively into renewable power sources. It has been actively buying and building wind farms, for example. Government mandates about cutting dangerous emissions will help create demand for electricity from such generation.
The cut should bring the company's payout in line with its ability to grow its business and continue to pay a dividend. There is, however, no guarantee of that. So, for more aggressive investors willing to bet that the new direction works out, Atlantic Power might be a good option. And you'll be paid well to wait for the turnaround.
hows that big short position working out for you "hardmetalman" ? At going to new lows now after this last exdiv date of 326th.. traders have moved on to ac.a and ac.b and the small cap miners like ngd and ti and nem and abx...short term rallies ther since gold rebounded,,maybe they come back to AT,,,later
Sentiment: Strong Sell
i would only add if currant ceo sent to prison,,,i read that post below, last run up on 25th before exdiv was good for another flip but now i suspect this stock will test new post exdiv low pps.. exe just cut their div as well and stock fell from 8s into 6s, sign of the times with these shysters snagging investors and then cutting the dividend like at and exe and agd and arr and who next clf?caveat emptor and nolo carpe diem,, dont be in a hurry to buy these rip-off high div stocks cause dividend doesnt last and your pps drops,, its a legitamate ponzi scheme, peddled on the nyse and tsx/e to unwary investors...jmho
Sorry if you saw my posts as bashing. I've tried to be objective and realistic at the same time and most of the recent news on this company has been very negative.
The only reason I still check this stock everyday is so I can reinvest when the time and price is right and - hopefully - recoup some of my substantial losses.
There are several metrics to measure a company..
However, there are two main indicators that are commonly used as "take over prices" (determining the value of a company)
2. Enterprise Value/EBITDA
In the recent filings, At has retired a good amount of debt..
With a 12-36 month horizon, and AT trading at four and change...
I see AT as a bargain.
Bash as much as you want..
AT is currently paying an 8% dividend..
(and pays monthly)
Far better than a T bill or CD..
I will keep on backing up the truck.