Atlantic Power Corp: A Stock to Hold for DecadesWhile this chart is not exactly gorgeous, Atlantic Power Corp (ATP) has remained on top of my watch-list for quite some-time.
Firstly, ATP represents one of the most promising companies to eventually turn into a 20, 30, 40 and 50.00 stock in 5-10 years like some of the behemoths like Fortis.
Secondly, ATP has focused their portfolio strongly into the biomass energy sector which represents the future for energy.
Thirdly, most importantly, and finally, the company has several large contracts that are signed near 2030 and some over 2040 which is exceptional news for investors.
Sure its a dollar stock and it represents no dividend and more volatility, but in-time it will triple and quadruple in value. The fact we are heading into a global recession where interest rates will remain suppressed (good for the utility sector), this could give it a nice boost over the next few years.
One thing you want to assure in this upcoming recession is you diversify into companies with proven free cash flow; free cash flow is king and those who are in debt will get burned irrespective of how they are or have performed over the last little while.
Earnings come out on November 4th.
- zSplit
Utility
TERRAFORM POWER INC. - NASDAQ: $TERP FlaggingAfter breaking-out in early Spring (March), TerraForm Power Inc. NASDAQ: TERP has found itself digesting/consolidating in a Flag pattern as we can observe from the Daily chart above.
While the action has been fairly benign with-out much fanfare, TERP continues to display solid technical characteristics and remains in decent shape despite trading slightly below both its 20 and 50 DMA's, yet comfortably above its rising 200 DMA.
In addition, when one extends out to both the Weekly and Monthly duration, TERP finds itself in a healthy technical posture as well. Thus, we have a stock trading in a favorable technical posture across multiple time-frames, which bodes well.
Moving forward, 'When and If' TERP is capable of going top-side of the $14.25 and perhaps more importantly the $14.50 levels, such development, should it occur, would like trigger its next advance into greener pastures.
In the meantime, TERP yields nearly 6% via dividend and for those seeking a bit of income while waiting for its next move, you're being handsomely paid to wait.
Nonetheless, both investors/traders may want to continue to monitor the action closely for a potential break into higher ground.
43.4p - 47p resistance - bullish weekly candleNeeds to close on daily at 35.7p but if so then an entry would be good as it could well go to 43.4p resistance (previous support)
keep an eye for RSI trend break if 43.4p is touched to analyse if it will go higher.
47p also where 200ma weekly is might well have a breather after so best to scale out near here to protect profits.
Trading Update & Outlook
As announced last week, revenue for the financial year ending 31 March 2019 is expected to be approximately GBP57.0 million (2018: GBP44.6 million) and adjusted EBITDA for the same period is expected to be approximately GBP11.0 million (2018: GBP8.4 million).
The Board believes that Fulcrum's breadth of services across multi utility, gas and electrical markets, sees it well positioned to capitalise on opportunities across the infrastructure and asset ownership sectors. The headwinds encountered in the larger electrical infrastructure sector continue to present challenges but the Board remains confident in the Company's longer term prospects.
Martin Harrison, Chief Executive of Fulcrum, said:
"We continue to see sustained growth in our gas infrastructure and asset business and are encouraged by the smart metering, cross-selling and electric vehicle charging opportunities for the Company. Despite the current conditions in the larger electrical sector, we remain confident that the successful execution of the Company's strategy and balanced approach to the industrial, commercial and residential markets will deliver long term, sustainable growth for Fulcrum."
USD/ZAR due for a correction soonBad news in South Africa (power utility troubles caused the price to rally extremely high). The situation is somewhat normalized as of now but insolvency issues for the power utility company still persist.
RSI shows super overbought so expect a drop sometime soon after slightly more uptrend and perhaps sideways.
This is still in a strong downtrend on the daily chart so I'm pretty sure the trend will continue.
What about utility stocks? Gann Fibonacci Elliott Wave ForecastAfter forming a double top base around $45, a A-B-C Elliott wave retracement has been in an expanding range. Ultimately the bearish price divergence indicate the swing downtrend is continuing. If that occurs, the next target, and likely forecast resistance area, is between $43 and $42 (0.5-0.61 fibonacci) in 30 days - Gann time