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Discussion Starter #1 (Edited)
1.26B mkt cap Canadian green power company (thermal, wind, hydro, solar).

Got a letter saying they want to open a 45MW co-generation (CHP) facility in my neighbourhood beside the Redpath Sugar factory. Supposedly enough to power 36,000 homes. Hadn't heard of them before today.

Started in 1997, was listed as NPI.UN. Current price - $16.42. 10 year low - $9.49 on June 19, 2009.

6.58% distribution paid through cash flow, probably decent growth prospects.

I see Spidey mentioned it in the What are you buying? thread last spring and wonder if he's still holding. Anyone else own it? What do you think?

http://www.npifund.com/ | 2011 - Q1 Interim Report
 

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Again different info on different websites :(
NPI.TO EPS as per TDW 2.81 (that is very good), per TMX however it's just 0.77 :eek:

also, looks like they never increase their dividends
 

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You should read the regulatory filings. This company is paying out 150% of its free cash flow in dividends. It does not anticipate paying out less than 100% until at least 2013. Good to keep an eye on, but would not buy until they get their prospects under control.
 

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picked up some recently.... anyone else with me ? ;p
Bought a few (500) back in January 2008 @ $10.75......currently up 36.65% with a purchase yield, (I know, I know, purchase yield don't count) of 10.05%.
 

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I own a small amount of shares just 200 but I like the company. The have invested quite heavily on renewable energy projects that will hopefully pay off within the next 1-3 years. The dividend payout ratio is north of 100% because they have been financing projects but should be sustainable for the interim period until projects bear fruit. The risk is in the execution but it could pay off nicely if your open to that kind of risk and timeframe.
 

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I've owned 2000 shares of this since 2010, and I'm only up about 8% on it. It has however paid me a 7% divy on my cost for the last 5 years. Always feels so up and down to me, I barely look at it, it's so boring:)
 

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We held 1200, reduced to 500 in 2014 after the announcement of the Gemini project in The Netherlands. You may want to read about this and make up your mind if a “small” company like Northland Power can handle a project like this.

According to Siemens AG (they will provide the wind turbines for the project) website this is the biggest ever project financed wind park at all.
- Total budget almost 3 billion Euro
- 70% through project financing thru more than 20 participating partners. For Siemens it is the largest - contract for Siemens Energy Service, they are supposed to provide 150 wind turbines for a 600 MW wind power plant and they are only participating with 20% .
- 85 km offshore The Netherlands in the North Sea

Further on Siemens' website it says:
Main shareholder of Gemini is the independent Canadian energy producer Northland Power Inc who holds 60% of the shares. 20% are with Siemens Financial Services, 10% each with Van Oord (Dutch company) and HVC, a Joint Venture of Dutch communities and water regulating authorities.

Two things concern me:
1. How does NPI finance their portion of the project which is huge?
Let's assume NPI will make money with their 15 year or so contract – once the plant is built! But it needs to be built first. What happens if there are delays?

Neighbour-Country Germany for example which is insanely driven to fulfill the EU's renewable energy directive faces huge opposition on the same issue – and the Netherlands will have the same problem:
Building the offshore plant is not all of it. The collected energy has to go somewhere, huge power supply lines have to be built overland. The population is not necessarily in favour of having these monsters in their backyard. And it looks if Germany is slowing down their ambitious re/construction in energy transition as power has become so expensive that DE has become the most expensive power provider in Europe.

2. Experts have voiced concerns that huge wind parks may not work efficiently as the turbines in the first few rows will take too much wind away from the ones further back.

Anyhow, the project is not without obstacles and the main question remains: can NPI manage?
http://www.northlandpower.ca/What-We-Do/Projects/Wind/gemini.aspx
http://www.siemens.com/press/en/pressrelease/2014/energy/wind-power/ewp201405048.htm
 

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Pucki that's one of the most informative posts I've read on CMF thank you.

For those that are content with 3-4% yields per year and capital preservation buy CU, FTS or EMA. Utility stocks have become market darlings because of the yields as a function of 7 years of ultra low interest rates. But don't fool yourself that your equity is any safer should interest rates go up, these stocks will get smoked.

NPI has a great story and they are taking a gamble on an ambitious project, you could get in on the ground floor and gamble for the upside (and downside) or you can buy it in 3 or 4 years when it's the next EMA and yielding 4%. Like many companies you don't get to be a certain size without taking risks to grow the business but they seem to be making an honest effort. Personally, I'm willing to allocate a small portion of my portfolio to companies with a reasonable chance of success that can bring me outsized returns. They are financing the project through bonds and likely another capital raise/share offering which is why I have not added more shares at the moment.
 

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Generally in secondary offerings, the underwriters want to keep the issue price as low as possible so they can flog their allotments quickly, and/or make a profit on ones they hold once they trade. The issuing company wants just the opposite to maxmize the cash raised. The negotiation usually results in the shares being priced just slightly below recent market sentiment to allow them to clear. That is about all you can discern from the pricing of secondary offerings.
 

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They announced they will conduct a strategic review. The market apparently likes this. I wouldn't mind if they get rolled up into Enbridge. It would simplify my portfolio a bit. Enbridge is already diversifying into the European offshore wind.
 
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