Algonquin Power and Utilities (AQN) is an utility company which shows phenomenal stock price increase since listed in 2009 and performed particularly well since covid19 pandamic where the interest is low.
After that the FED increased the rate aggressively, so does central bank of Canada. No surprising that hits AQN really hard as the management team failed to forsee the changes. They cut the diviends.
The stock price now is multiple years low, and rate increasing comes to the end. If Central bank of Canada is a indicator of FED, then they will cut the rates sooner than FED. Another good news for AQN is that active investors are push AQN to sell the renewable business (~ 20% revenue) to pay down the debt. Combined I think AQN will perfrom well after rate cuts. Of curse the PB and PE are reasonable.
I bought the AQN with the average price of $5.74.
UPdate: the activist investor Starboard Value nominated condidate to the AQN board, migt indicate push the selling of renewable business.