Q: Good morning,
I would appreciate your opinion on AQN ...is it a buy ,sell or hold with the news of today ?
Thank you
I would appreciate your opinion on AQN ...is it a buy ,sell or hold with the news of today ?
Thank you
5i Research Answer:
AQN cut its dividend for the second time, this time by 40%. EPS of 9c beat estimates of 8c. Revenue of $598M missed estimates of $635M. EBITDA of $311M beat by 4%. The asset sale proceeds was a bit less than analysts' expected, and of course the dividend cut is not going to please anyone. EBITDA did rise 12% and the dividend cut and asset sale will improve its financial condition. With the stock taking a hit there is potential upside here, if it can improve operations. Similar to when ALA cut its dividend, perhaps, as ALA has recovered well. But AQN continues to 'screw up' and investors have lost faith in the company. Even though it is only August, investors might see it as a tax-loss sell candidate. We would not miss it if it was sold.