NORTHLAND PWR (Symbol-NPI.UN)

Discuss your favourite picks, broker, and trading or investment style.
2 yen
Veteran Contributor
Veteran Contributor
Posts: 4116
Joined: 09 Apr 2005 09:15

Re: NORTHLAND PWR (Symbol-NPI.UN)

Post by 2 yen »

Pure speculation here: I wonder if Northland is thinking that now is the time to leverage up the ANTICIPATION of the rise in earnings which is around the corner. This anticipation may be worth more than the actual earnings stream to come. I do think they have low interest rates on their side for the time being, but perhaps the reality is closer to Alta Red's comment above.

2 yen
2 yen
Veteran Contributor
Veteran Contributor
Posts: 4116
Joined: 09 Apr 2005 09:15

Re: NORTHLAND PWR (Symbol-NPI.UN)

Post by 2 yen »

https://ca.finance.yahoo.com/news/north ... 52092.html

Here we go again looking for a buyer. This release fleshes out the prior teaser a little bit.

2 yen
User avatar
Descartes
Veteran Contributor
Veteran Contributor
Posts: 1856
Joined: 03 Nov 2008 09:59

Re: NORTHLAND PWR (Symbol-NPI.UN)

Post by Descartes »

A couple of fish on the hook but still a ways to go before its back to the $25 it was in July (..when I suggested holders should sell).

China Three Gorges, SDIC Among Bidders for Northland Power
First-round bids for the Toronto-based company, which had a market value of C$3.7 billion ($2.8 billion) at the close Friday, were due Dec. 2, said the people, who asked not to be identified because the matter is private. Some Canadian pension funds had a look at the company but balked at its valuation ahead of the bid deadline, the people said.

Northland Power rose 2.5 percent to C$22.20 at 9:39 a.m. Monday in Toronto, giving it a market value of C$3.8 billion.

Northland Power announced in July that it had commenced a review of strategic alternatives.
Interesting to note that "Canadian pension funds" said the valuation was too pricey.
For the Chinese government, though: "who cares?"
"A dividend is a dictate of management. A capital gain is a whim of the market."
2 yen
Veteran Contributor
Veteran Contributor
Posts: 4116
Joined: 09 Apr 2005 09:15

Re: NORTHLAND PWR (Symbol-NPI.UN)

Post by 2 yen »

Descartes wrote:A couple of fish on the hook but still a ways to go before its back to the $25 it was in July (..when I suggested holders should sell).

China Three Gorges, SDIC Among Bidders for Northland Power
First-round bids for the Toronto-based company, which had a market value of C$3.7 billion ($2.8 billion) at the close Friday, were due Dec. 2, said the people, who asked not to be identified because the matter is private. Some Canadian pension funds had a look at the company but balked at its valuation ahead of the bid deadline, the people said.

Northland Power rose 2.5 percent to C$22.20 at 9:39 a.m. Monday in Toronto, giving it a market value of C$3.8 billion.

Northland Power announced in July that it had commenced a review of strategic alternatives.
Interesting to note that "Canadian pension funds" said the valuation was too pricey.
For the Chinese government, though: "who cares?"
I could probably live with a $25 take out price. That would allow cap gains taxes to be paid and the remainder reinvested in something else for approx. the same income.

2 yen
User avatar
Descartes
Veteran Contributor
Veteran Contributor
Posts: 1856
Joined: 03 Nov 2008 09:59

Re: NORTHLAND PWR (Symbol-NPI.UN)

Post by Descartes »

Northland Power Scraps Sale Without Finding Buyer
Northland Power Inc., the C$4 billion ($3.1 billion) Canadian renewable energy producer, failed to find a buyer after running a sale process, according to people with knowledge of the matter.
I advised selling a year ago when it hit above $25 somewhere earlier in this thread. It never saw that again ..and still didn't increase their dividend despite pundits on BNN expecting it "any day now".
"A dividend is a dictate of management. A capital gain is a whim of the market."
2 yen
Veteran Contributor
Veteran Contributor
Posts: 4116
Joined: 09 Apr 2005 09:15

Re: NORTHLAND PWR (Symbol-NPI.UN)

Post by 2 yen »

Descartes wrote: 06 Jul 2017 12:20 Northland Power Scraps Sale Without Finding Buyer
Northland Power Inc., the C$4 billion ($3.1 billion) Canadian renewable energy producer, failed to find a buyer after running a sale process, according to people with knowledge of the matter.
I advised selling a year ago when it hit above $25 somewhere earlier in this thread. It never saw that again ..and still didn't increase their dividend despite pundits on BNN expecting it "any day now".
Well, they can't increase the dividend until the cash flows improve, which will be very soon as the North Sea projects come into fruition. Patience will be rewarded with this one. Don't put too much on what BNN says.

2 yen
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33398
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: NORTHLAND PWR (Symbol-NPI.UN)

Post by AltaRed »

Maybe. They have so many places to spend mega-capital over the next several years that I think they would be remiss in raising their dividend vs re-investment in the business. I'll speculate on them letting yield slide a bit if they can get stock price appreciation instead.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
2 yen
Veteran Contributor
Veteran Contributor
Posts: 4116
Joined: 09 Apr 2005 09:15

Re: NORTHLAND PWR (Symbol-NPI.UN)

Post by 2 yen »

AltaRed wrote: 06 Jul 2017 20:54 Maybe. They have so many places to spend mega-capital over the next several years that I think they would be remiss in raising their dividend vs re-investment in the business. I'll speculate on them letting yield slide a bit if they can get stock price appreciation instead.
My purely gut, non-scientific feeling is that they will both raise the dividend (a minuscule amount) and pay down debt / invest.

2 yen
User avatar
Descartes
Veteran Contributor
Veteran Contributor
Posts: 1856
Joined: 03 Nov 2008 09:59

Re: NORTHLAND PWR (Symbol-NPI.UN)

Post by Descartes »

Hope is a dangerous thing in investing.

Instead of sticking with this "gut feeling" for a year you could have sunk it in Brookfield Renewable and gotten a 5% div increase and a 5% relative capital gain in the meantime (as an example).
"A dividend is a dictate of management. A capital gain is a whim of the market."
2 yen
Veteran Contributor
Veteran Contributor
Posts: 4116
Joined: 09 Apr 2005 09:15

Re: NORTHLAND PWR (Symbol-NPI.UN)

Post by 2 yen »

Descartes wrote: 07 Jul 2017 13:21 Hope is a dangerous thing in investing.

Instead of sticking with this "gut feeling" for a year you could have sunk it in Brookfield Renewable and gotten a 5% div increase and a 5% relative capital gain in the meantime (as an example).
Well, hope has to be based at least in part on news and NPI has a lot of good news. Own Brookfield renewables and it has been good so far.

2 yen
JaydoubleU
Veteran Contributor
Veteran Contributor
Posts: 3103
Joined: 13 Sep 2007 22:52

Re: NORTHLAND PWR (Symbol-NPI.UN)

Post by JaydoubleU »

My pick in this space would be Algonquin, up 15% YTD even after the recent sell-off. No harm in owning a basket of these, however. I have some PEGI, and I might have bought INE years ago but missed that one.

I'm no expert, but I'd think an astute buyer would wait until NPI sells off some more, and then try to get it at a price far less than what they were probably asking (which was probably too much, and at the peak of the utilities sector boom). Snap it up when utilities sell off aggressively following some interest rate hikes (?)
2 yen
Veteran Contributor
Veteran Contributor
Posts: 4116
Joined: 09 Apr 2005 09:15

Re: NORTHLAND PWR (Symbol-NPI.UN)

Post by 2 yen »

Finally NPI is making more money. Wisely, they didn't increase the dividend.

https://finance.yahoo.com/news/northlan ... 49669.html

2 yen
2 yen
Veteran Contributor
Veteran Contributor
Posts: 4116
Joined: 09 Apr 2005 09:15

Re: NORTHLAND PWR (Symbol-NPI.UN)

Post by 2 yen »

Well, they finally pulled the trigger on a dividend raise after years of losses. Normally I cull non-growers, but this one was an exception. What sealed the deal for me was when, by coincidence a few years ago, I flew over some of their construction in the North Sea and actually saw the realization of their plans. I hope management remains prudent and does not succumb to dividend mania and raise too much too often. A nice increase every couple of years would suit me fine.

Here is the announcement:

https://ca.finance.yahoo.com/news/north ... 11572.html

It should be noted that this is not a slam dunk. The board still has to approve the 'plans'.

2 yen
max88
Contributor
Contributor
Posts: 475
Joined: 26 Oct 2007 21:29
Location: Toronto

Re: NORTHLAND PWR (Symbol-NPI.UN)

Post by max88 »

I accidentally typed NPI in yahoo finance a few days ago.

Major shareholder reducing stake caused stock price to drop almost 10%.

https://ca.finance.yahoo.com/news/north ... 37173.html
TORONTO, March 18, 2019 (GLOBE NEWSWIRE) -- Northland Power Inc. ("Northland") (NPI.TO) announced today that Northland Power Holdings Inc. has entered into an agreement with Northland and a syndicate of underwriters led by CIBC Capital Markets (collectively the “Underwriters”), pursuant to which the Underwriters have agreed to purchase on a bought deal basis an aggregate of 32,120,000 common shares (the “Shares”) of Northland held by Northland Power Holdings Inc. and/or other entities controlled, directly or indirectly, by Jim Temerty (collectively the “Selling Shareholder”) at an offering price of $23.35 per Share (the “Offering Price”) for total gross proceeds to the Selling Shareholder of approximately $750 million (the “Offering”). Northland will not receive any proceeds from the Offering.

The Underwriters have also been granted an over-allotment option (the “Over-Allotment Option”) by the Selling Shareholder to purchase up to an additional 4,818,000 Shares from the Selling Shareholder at the Offering Price for additional gross proceeds of approximately $113 million if the Over-Allotment Option is exercised in full. The Over-Allotment Option can be exercised at any time, in whole or in part, for a period of 30 days from the closing date of the Offering.

Mr. Temerty, Chairman of the Board of Northland Power, confirmed that the Offering is being undertaken for estate planning purposes and that he will remain committed to being a long-term shareholder of the Company.
...
I am cautiously optimistic. When it goes up, I claim I have been optimistic; when it goes down, I claim I have been cautious.
lacrosse905
Contributor
Contributor
Posts: 242
Joined: 05 May 2014 20:59

Re: NORTHLAND PWR (Symbol-NPI.UN)

Post by lacrosse905 »

I had NPI on my watchlist and was going o buy it last week...glad I waited and bought this morning, @23.52 could have done better yesterday, but I thought it might have gone down a bit more.
Post Reply