Sound bite for Twitter and StockTwits is: Utility Stock. The stock is cheap but it has declining sales probably, no dividends and debt ratios show a large vulnerability. See my spreadsheet on Atlantic Power Corp. I do not own this stock of Atlantic Power Corp (TSX-ATP, NYSE-AT). Because I like power companies and this year 2010, I’ve read two columns that suggested this particular utility company (TSX-ATP), I made a decision to investigate it.
After looking into this stock, my first impression is that I would not touch it with a barge-pole. WHILE I was updating my spreadsheet, I noticed there is a huge difference between basic and diluted shares outstanding. This is because of convertible debentures. 16.6M. They said that they were preventing the dividends to use the money to buy back shares partly. There are longer any dividends being paid no.
The company has a lot of preferred stocks and it is for their value that shareholders publication value is negative. Debt Ratios are a huge vulnerability. The debt level is much high with Liquidity Proportion and Personal debt Proportion being too low too. Under the Capital Gain column is the portion of the Total Return attributable to capital gains.
Under the Dividend column is the portion of the Total Return due to dividends. As you can plainly see from the graph only Canadian shareholders eked out comeback of 3 below.38% because of dividends. From Years Div. Gth Tot Ret Cap Gain Div. THE UNITED STATES shareholders never have done well. From Years Div. Gth Tot Ret Cap Gain Div.
I cannot do any P/E Ratio testing because the P/E Ratios is all negative. This includes for the 5, 10, and historical periods. A P/E Ratio of 8.15 is a minimal P/E Ratio. I cannot calculate a Graham Price because this stock’s reserve value is negative. I get a 10-yr median Price/Book Value per Share Ratio of just one 1.32. However, I cannot compute a new P/B Ratio because the publication value is negative.
- Strength of the total amount sheet
- ► February (4) – ► Feb 25 (1)
- What is the best arrange for building your saving? [Pay yourself first.]
- I am lucky; I will never be in short supply of money
- Add: Non-recurring forex loss = $8.7M
I cannot do a dividend produce test because they have canceled the dividends. 2.48. The existing ratio is 10% above the 10 12 months median ratio. This stock price tests show that the stock price is relatively fair but above the median. Results of stock price testing would be that the stock price is probably cheap. Most checks cannot be run because of problems like a negative reserve value and no past P/E Ratios that I can use in tests.
Is it a good company at an acceptable price? Personally, I would not buy this stock. Not only is it not just a dividend-growth company, its income is falling and it offers a negative reserve value. It has high debts fill also. Additionally it is a computer program and even if it recovers, how much could you make on a recovering utility stock? 3.13. This implies a total return of 26.10% with it all from capital gains.
See what experts are saying on Stock Chase. There are few analysts writing on this stock and over the full years most do not like it. Rich Smith on Motley Fool talks about this stock dropping in-may with positive news. Matt Smith on Motley Fool feels the business will struggle to unlock value for investors at any time soon.
An article writer on Simply Wall Street says it is cheap however, not posed to produced positive profits in the new future. An article writer on Zacks via Nasdaq talks about this stock being undervalued.Atlantic Power Corp. owns and operates a fleet of power generation property in America and Canada. Its power generation projects sell electricity to utilities and other commercial customers.
