Fortis (FTS) down 3% today? - Page 3
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Thread: Fortis (FTS) down 3% today?

  1. #21
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    FTS up nicely last 2 days (up .98 today..yeaaaaa!)
    How come? I like to know these things.


  2. #22
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  3. #23
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    Quote Originally Posted by yyz View Post
    TY!

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  5. #24
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    I think it is only a matter of time for FTS to float back down to potentially sub-$40. It makes very little sense for a company like Fortis to purchase a regulated USD utility with 76 cent loonies. Had they done it with 110 cent loonies, that would have made more sense. Investors are about 30% behind the 8ball right out of the starting gate. If one looks at capital flows over the years, US purchase and/or sale of Canadian assets ebb and flow with currency....as it should be. Buy when the assets are cheap in your home currency.

  6. #25
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    Quote Originally Posted by AltaRed View Post
    I think it is only a matter of time for FTS to float back down to potentially sub-$40. It makes very little sense for a company like Fortis to purchase a regulated USD utility with 76 cent loonies. Had they done it with 110 cent loonies, that would have made more sense. Investors are about 30% behind the 8ball right out of the starting gate. If one looks at capital flows over the years, US purchase and/or sale of Canadian assets ebb and flow with currency....as it should be. Buy when the assets are cheap in your home currency.
    interesting alta.... do you think it would a good idea to unload a few shares now at $42 level(my ACB is pretty low)...and maybe buy back in on a future dip ...?

  7. #26
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    Quote Originally Posted by jargey3000 View Post
    interesting alta.... do you think it would a good idea to unload a few shares now at $42 level(my ACB is pretty low)...and maybe buy back in on a future dip ...?
    I don't believe in 'trades' necessarily -- so am ducking a response. Just pointing out there will be headwinds if the loonie appreciates. Example: If the loonie goes to 83-84 cents, the most recent acquisition will have cost 10% too much AND will not be accretive. OTOH, if the loonie depreciates to sub 70 cents, the CEO will look like a genious. Which way do you think the loonie will go in the medium-long term?

    In the last few years, there seems to have been a frenzy (of companies*) buying US assets with depreciated loonies. Just the opposite of what should be done. Where were they when the loonie was above par? One might argue that if the Fortis acquisitions had been done with a NYSE USD secondary offering and US debt, then there is mostly an equivalent offset. Still, there will be headwinds in both asset values and earnings/cash flow when (if) the loonie appreciates. IOW, current results reflect the 'high' USD and share performance could face substantial headwinds.

    There have been smart examples. For example, Chartwell REIT had a number of US domiciled assets...which they then sold circa June 2015 (I think) to cash in on the appreciation they gained in those assets due to currency moves.

    * The most recent example of 'stupid' is ALA's pending acquisition of a staid old US Northeast utility. WTF were they thinking? They took a perfectly good company with a good business strategy and are proposing to burden it with ??? Unfortunately, I own ALA and will be dumping it when it blips (probably the day regulatory clearance is obtained)
    Last edited by AltaRed; 2017-02-17 at 12:18 PM. Reason: Added comment

  8. #27
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    Up a loonie today. Woo-Hoo...but, why?

  9. #28
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    Quote Originally Posted by jargey3000 View Post
    Up a loonie today. Woo-Hoo...but, why?
    Maybe because bond yields have been dropping. For a company with a lot of debt, reduced interest payments in the future is a plus.

  10. #29
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    Because it's a quality company and pretty soon there will be earnings growth through the synergies created by their acquisitions, which I think are at the point where they will be accelerating. This is a great time to be in a stock like this - margins improving, scale improving, earnings growing, and anticipation eventually builds to the next acquisition or growth strategy. Holding steady with my shares. It is within 1% or so of the all time high.

  11. #30
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    Quote Originally Posted by doctrine View Post
    Because it's a quality company and pretty soon there will be earnings growth through the synergies created by their acquisitions, which I think are at the point where they will be accelerating. This is a great time to be in a stock like this - margins improving, scale improving, earnings growing, and anticipation eventually builds to the next acquisition or growth strategy. Holding steady with my shares. It is within 1% or so of the all time high.
    I've owned it forever.......i seem to recall way back in the stone age.... when they split 4-for-1 or something @ around $80???
    or am i hallucinating ....again...?


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