Two power trusts: one buy, one hold

Article Excerpt

ALGONQUIN POWER INCOME FUND $8.43 (Toronto symbol APF.UN; SI Rating: Extra Risk) now has direct or indirect interests in 48 hydroelectric facilities — 4 in Ontario, 12 in Quebec, 13 in New York State, 13 in New Hampshire, 1 in Alberta, 2 in Vermont, 1 in New Jersey and 1 in Newfoundland. This represents total generating capacity of 140 megawatts. Algonquin also has interests in 5 co-generation plants, 17 alternative fuel plants (including wind, energy-from-waste, biomass and landfill gas), and 17 water reclamation and distribution facilities. Algonquin Power yields 10.9%. In the three months ended December 31, 2006, Algonquin Power’s revenues rose 5.5%, to $53.7 million from $50.9 million a year earlier. Cash flow per unit fell 14.3%, to $0.24 from $0.28. Algonquin continues to grow by acquisition. It’s now offering to acquire TSE-listed Clean Power Income Fund for $208 million, mostly in Algonquin units. Clean Power Income Fund has interests in 15 alternative power generating facilities located in Québec, Ontario, Alberta,…