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Tom Konrad, CFA  

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  • 10 Clean Energy Stocks For 2014: Out With The Old [View article]
    Thanks for finding that.
    Feb 19, 2015. 01:51 PM | Likes Like |Link to Comment
  • 10 Clean Energy Stocks For 2014: Out With The Old [View article]
    neroden-

    That's very interesting, I had not heard of this. I did not have much luck googling "Norfolk Southern North Carolina Railroad case"... do you know where we can find more information?
    Feb 18, 2015. 11:33 AM | 1 Like Like |Link to Comment
  • 10 Clean Energy Stocks For 2014: Out With The Old [View article]
    In terms of competition, the transit bus market is segregated by geography much more than technology. NFI's competitive advantage is its experience and service offerings in the North American market. These will help the company no matter what the bus propulsion system is, be it diesel, hybrid diesel, electric trolley, battery electric, CNG, or hydrogen fuel cell (all of which New Flyer sells, and all based on just a couple platforms.)
    Feb 18, 2015. 11:05 AM | Likes Like |Link to Comment
  • Power REIT: Light At The End Of The Tunnel? [View article]
    Reynolds,
    In answer to your question as to why mgmt (which basically means David Lesser) decided to spend so much time and treasure on this case:

    1) He did not anticipate that it would ever go on this long or become this complex. If you read the lease alone, PW seems to have an easy win. Recall that all the court filings that you base your opinion on came later, after the decision to foreclose. Hindsight is 20/20.

    2) PW did not manufacture the original default. He sent WLE a bill that he clearly had expected them to pay (and which should not have been a surprise to them, as he had previously informed them that he had retained legal counsel in the matter) and they did not pay. The only recourse PW had to make sure WLE meets its obligations under the lease is to attempt to foreclose. Once WLE refused to pay this bill, what would you have done in Lesser's shoes?

    3) Some of PW's other arguments (such as arguing the sale mineral rights constitutes conversion) are IMO, pretty flimsy- but once the case had been opened, why should he not try every legal strategy which might stick?
    Feb 17, 2015. 10:31 AM | 1 Like Like |Link to Comment
  • Forget Beaten Up Utilities, Buy This 7.1% Clean Energy REIT [View article]
    I think we can all agree it's hard to slot into traditional categories. That's a problem with the categories, though, not the stock.
    Feb 16, 2015. 09:52 AM | Likes Like |Link to Comment
  • Forget Beaten Up Utilities, Buy This 7.1% Clean Energy REIT [View article]
    The reduction has already taken place, and is IMO priced in. Hence the appeal is potential upside.
    Feb 16, 2015. 09:49 AM | Likes Like |Link to Comment
  • Power REIT: Light At The End Of The Tunnel? [View article]
    I think you're too pessimistic, but agree that the presentations from PW present an overly rosy view- did you read the lease itself - that makes PW's case seem very strong.

    In any case, I'm ready to agree to disagree on this. With luck, we'll have a ruling soon enough.
    Feb 13, 2015. 05:26 PM | 1 Like Like |Link to Comment
  • Power REIT: Light At The End Of The Tunnel? [View article]
    I agree. The only reason for the attempt to foreclose in the first place was because there was some reason to believe that there would be a positive outcome. I know directly from Lesser than the civil case has caused problems getting financing for the solar acquisitions.

    In reality, I believe Lesser thought he had a good case and that the whole thing would have led to a negotiated settlement long ago.
    Feb 13, 2015. 05:24 PM | Likes Like |Link to Comment
  • Forget Beaten Up Utilities, Buy This 7.1% Clean Energy REIT [View article]
    Oil has pretty much nothing to do with HASI's business, although there is some connection to nat gas since some of its energy savings project reduce the use of this fuel. But wind and solar produce electricity, which does no compete with oil- oil is transport & plastics, electricity is everything else. So the price of nat gas and coal make a difference to HASI, but not oil.
    Feb 13, 2015. 01:16 PM | 5 Likes Like |Link to Comment
  • Forget Beaten Up Utilities, Buy This 7.1% Clean Energy REIT [View article]
    I like buying stocks when the price is low. At the current price, all they need to do is maintain the div to produce stock price appreciation (plus a nice yield.) Read may articles as to why I think they can.
    Feb 13, 2015. 01:13 PM | 1 Like Like |Link to Comment
  • Power REIT: Light At The End Of The Tunnel? [View article]
    Reynolds,
    I concede that your scenario of time to cure a breach and reimbursement of legal costs *is* a likely outcome- if that's your point, I did not miss it. What I do miss is the "waste of shareholder funds."

    If that is the outcome, PW writes off the settlement account and resumes its $0.40 dividend, with the likelihood of dividend growth and/or a special dividend b/c of the solar acquisitions and the large (for PW) infusion of $3M+ cash. Because of the write off, the dividend will be a very tax-efficient return of capital, so a fair yield would be 4% or so - i.e. a stock price of $10. I'd call that a waste of company time, but not funds (since legal costs are reimbursed.) Most of WLE/NSC's arguments amount to "this is the way we've always done it" but that argument does not apply to the legal bills, because they have paid such bills in the past. Here there argument is simply that "this is a tax issue and we don't pay bills for tax issues." But it's not a tax issue, it's about differing interpretations of the lease.

    If that's your downside scenario (a $10 share price target for a $9.50 stock), even a small possibility of a more favorable ruling justifies owning it.
    Feb 13, 2015. 12:34 PM | 1 Like Like |Link to Comment
  • Forget Beaten Up Utilities, Buy This 7.1% Clean Energy REIT [View article]
    TheBaronInvesting-
    For a great Canadian green dividend payer, try Capstone Infrastructure (TSX:CSE, US OTC:MCQPF). Currently my second largest holding after HASI. Capstone is what I'm buying now. You'll a couple articles of mine on Capstone in Seeking Alpha, plus monthly updates in the "related" articles. Same is true on HASI- both are in my 10 Clean Energy Stocks for 2014 and 2015 lists.
    http://bit.ly/1vIveiv
    http://bit.ly/1vIveix
    Feb 13, 2015. 12:18 PM | 1 Like Like |Link to Comment
  • Forget Beaten Up Utilities, Buy This 7.1% Clean Energy REIT [View article]
    Brad,
    You and I talked about this stock almost a year ago, so you could easily have bought without violating your 10 day rule... do you always write first and buy later, or am I just not very convincing?
    Feb 13, 2015. 11:13 AM | 6 Likes Like |Link to Comment
  • Power REIT: Light At The End Of The Tunnel? [View article]
    The court could do a lot of things, including finding that there was a breach and allowing cure- but if they concede that there was *any* breach, such as the one in the pessimistic scenario you outline, it would seem to me that they would also find that the case was "necessary or desirable" for PWV to maintain its interest in its property (if the case had not happened, there would have been no cure.) Hence, it seems likely that the court would follow the lease and say that WLE had to pay the $3M of legal bills.

    I'd also like to point out that the lease specifically states that there is no remedy for any breach, so allowing any cure is really a ruling in WLE/NSC's favor.
    Feb 13, 2015. 11:03 AM | Likes Like |Link to Comment
  • Forget Beaten Up Utilities, Buy This 7.1% Clean Energy REIT [View article]
    To clarify this issue, HASI raised the div to .26 when they announced a large acquisition of wind assets last fall. Those assets are what will produce the cash flow to cover the new div. HASI's dividend target is 100% of distributable income, which they have tracked very closely since the IPO in 2013.

    Brad, thanks for bringing HASI to the attention of the broader REIT investing public.

    One other minor clarification- the renewable energy (RE) assets are *partly* good REIT assets, since they usually include the land that the wind and solar farms are built on. In fact, some of the transactions that HASI counts as RE consist solely of the land under wind and solar farms.
    Feb 13, 2015. 10:54 AM | 4 Likes Like |Link to Comment
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