CAFD

[Dividendsrule]

(09-30-2015, 08:20 PM)rapidacid Wrote: Has no dividend and negative free cash flow?

Haha...Allright smartypants

Here's some context.

I am full to the gills with MLPs, as far as it looks to me Rich Kinder and Kelcy Warren will end up controlling all the pipelines in America and I'm fine with that. Natural gas looks like the next phase from the supermajors, CVX has the Gorgon and RDSB has BG etc. City buses run on CNG and LNG has plenty of uses. Coal with be replaced with natty gas in the energy grids.

HOWEVER there is a big push toward renewables and solar in particular. The supermajors are fully aware of this, the last BP report as well as Exxon's analysis both talk about renewables growing far more than traditional energy mix in the next decades. How to hitch my wagon to that growth, I wonder?

There have been these "Yieldcos" which may be a little shady. I don't know, that's why I bring it up here.

First Solar and Sunpower teamed up to create this yieldco, called 8point3 and tickered as CAFD (cash available for distribution I guess). First solar is legit, its supplying Apple with energy and whatnot, I've seen them around for a while (share price dropped from 120 to the teens in the past 5 years or so).

They are announcing their distributions now, I guess its an LP, and you're looking at a forward distribution of .88 which puts the current yield at around 8%. They IPOd at 21 a share and now they are nearly 11, they got cut in half in the recent kerfuffle.

The contracts they are getting look long term and any time I hear "22 year contracts" my ears perk up

"Once our initial portfolio reaches commercial operation this year, our assets are expected to generate approximately $70 million in annual CAFD with an approximately 22-year average remaining contract term. With a diversified solar asset portfolio across both the utility and distributed generation markets, an identified Right of First Offer (ROFO) portfolio of more than 1,100 MW and strong pipeline development efforts from our joint sponsors, we are well positioned to achieve our sustainable, targeted growth rates."

http://www.prnewswire.com/news-releases/...51955.html

So I am screening this with our esteemed company...