Financial Webring Forum

by **2 yen** » 08Nov2007 04:59

Why is Boralex tanking? Below $7 now. Also, can someone explain how the change in trust rules will affect power trusts? Thanks for any comments.

by **scomac** » 08Nov2007 07:56

It's not the only power trust that is in the crapper; EPCOR has also set a new 52 wk low recently.

by **2 yen** » 08Nov2007 08:09

Own Epcor, too.

by **arthur** » 08Nov2007 08:34

BNN profiled this, sorry, don't remember what was said?

by **barrister** » 08Nov2007 19:26

Check the 3rd quarter financials, the story is there. As usual, investors have overreacted to what hope is a short run problem.

by **sydney2** » 08Nov2007 23:10

Epcor volume 99,684 so somebody thinks it is a buy, great dividend $2.52, I have owned this for years, may buy some more at these prices.
They expect improvement with new acquisitions.

by **2 yen** » 08Nov2007 23:40

Seems to me that Epcor priced in the new tax rules immediately, while Boralex has stayed, relatively, higher. How will Boralex and Epcor prices and dividends change when the the new rules kick in? Has anyone read what their plans are? Thanks. Bottom line is, should I add at these cheaper prices?

by **Mike Schimek** » 09Nov2007 02:27

Heyo 2 yen, from your questions, this is the advice I would give, albeit harsh:

step #1- sell everything you own
step #2- buy XIU with the money
step #3- go to a large bookstore and buy a book called "The Intelligent Investor" by Benjamin Graham
step#4- after having read the book, you'll understand why I give step #1-3 as advice

#3 is the most important one. Furthermore if you like income trusts you'll also need to buy some books about how to analyze security's financial statements (VERY IMPORTANT) because so many income trusts are leveraged to the hilt and represent a large danger of going "poof", so being able to read and understand their financial statements is paramount. The dividend yield is just eye candy, it's the underlying financial fundamentals that are important and indicate the sustainability of the dividend yield.

by **2 yen** » 09Nov2007 05:22

Thanks Mike. It's not harsh, just a dose of reality maybe, and appreciated. I own four stocks that increased their dividends this week and have a good history of doing so. The lesson is there if I choose to take it. Invest in reliable dividend payers, as Yielder pounded into me a year ago, with good success. Trusts make up 8% of my portfolio. I will look into XIU because you have me curious now. Thanks.

by **2 yen** » 09Nov2007 05:33

Mike, should have also mentioned I'm, largly, an income investor. I like to reinvest the dividends. XIU is a bit low on that count.

by **2 yen** » 09Nov2007 17:55

Hydrology seems to be the issue, but the results are not the end of the world.

by **2 yen** » 20Dec2007 19:33

Well, Boralex is below $6 and has a ridiculously high yield. Does anyone know why, other than the general sell off and the bad hydrology recently?
This sell off seems excessive.

by **Cassandra** » 10Jan2008 02:34

Mostly hydrology, but there also seems to be a major lawsuit and a mystery:

http://www.940news.com/nouvelles.php?cat=22&id=1102142

Thanks.
C.

by **2 yen** » 20Feb2008 04:38

Well, will they cut the distribution or not? Find out on Friday, I guess. I will hang in there even if they do.

by **iluvnascar** » 20Feb2008 17:04

Desjardins Securities just added BPT.UN to their BUY list.....they say that the selling is way overdone. In their words: "The only thing to fear is fear itself."

They say that all the bad news is built in to the price (yes, I've heard that one before). But TD indicated (a month ago or so) that although they expeced distributable income to be a bit short of the amount being paid out, they didn't expect a distribution cut.

So flip a coin.....

by **sydney2** » 20Feb2008 18:32

We sold off Boralex during the first part of 2007, just to trim some of our income trusts. Little did I know at that time it would fall so quickly.

February 9 2007 sold @9.60

April 19 2007 sold @ 10.49.

Didn't realize at the time it was a good move.....

by **Arby** » 20Feb2008 22:02

2 yen wrote:Well, will they cut the distribution or not? Find out on Friday, I guess. I will hang in there even if they do.

If you're in a loss position with Boralex, why not sell and harvest the tax loss? At least you'll get some tax benefit. If you still want retain a position in power trusts, you could use the funds from the sale to buy another high yielding power trust (Epcor and Algonquin both yield in the teens).

by **2 yen** » 21Feb2008 22:51

Distribution safe for this month as announced on their website today. Results for 2007 come out at 10:00 a.m. on the 22nd.

by **2 yen** » 22Feb2008 09:46

So, they've cut to 70 cents from 90. Hydrology was one issue, along with wood residue costs rising and future tax charges, the latter related to the 2011 tax changes ("...$42.0 million in future income taxes taking effect in 2011...") Not quite sure how that one works, though.

by **2 yen** » 11Sep2008 18:16

Here we go again! Boralex have shut one wood residue powered operation and are looking at the other. A quick scan of the last quarter's
financials means 25% distribution cut is almost certain. The closing of many Quebec sawmills is the cause which in turn is a fallout from the U.S.
housing bubble pop, which is in turn caused by unethical lending practices
of U.S. financial institutions. Go figure. I will not sell this dog as I've (stupidly) managed to ride all the way down.

Financial Webring Forum

Boralex (Symbol-BPT.UN)

Boralex (Symbol-BPT.UN)

Boralex

Investing

Who is online