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NRG Yield, Inc. (NYLD)

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4 hours ago, sunnypease said:

Thanks Disdaniel.  That explains the NRG jump.  And so we probably can't expect such a big jump for SPWR or FSLR selling their CAFD stake.

However, the sanity check on NYLD's price still stands.  Robert had suggested $35 based on NRG's valuation of NYLD.  I was merely pointing out that would give NYLD a 70 PE ratio.  (based on the google finance TTM numbers...)

what does 70 PE mean to the valuation made by the seller?

Like I said NRG can print what they like the only transaction will establish share price. The same goes for CAFD. This is why buying either of the two could carry a risk that value may not have a premium. It may have a lower price than the market if the seller is motivated to sell.

Despite everything said already, Sunny, you seem to create another scenario to create a value, there is none. NRG went up on improvements, not NYLD sale.  There are hundreds of stocks with 70PE. FSLR is one of them.

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On 7/13/2017 at 5:54 AM, odyd said:

I think there could be a truth to $35 per share. The net of $0.16 per watt is equity in a conventional. This means about $0.80 per watt. That is reasonable for gas and certainly coal. 

We've got to stop this Sunny thing.  Sonny is a nickname for a guy with just a few teeth who can fix any car or tractor.   That's not me.  I can't fix cars.

Anyhow, I was talking 35 because you had said 35.  & just posting a little note that a PE of 70 sounds too high.  Sounds like you maybe agree.

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12 minutes ago, sunnypease said:

We've got to stop this Sunny thing.  Sonny is a nickname for a guy with just a few teeth who can fix any car or tractor.   That's not me.  I can't fix cars.

Anyhow, I was talking 35 because you had said 35.  & just posting a little note that a PE of 70 sounds too high.  Sounds like you maybe agree.

I was saying it based on the presentation from NRG. Anyone can use the calculator and try to figure things out. I happen to share results when I use it.  Using PE for yieldco is an absurd metric. I also said that.

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We could be forgetting that NRG Yield could be buying rest of interest from its parent on a number of projects and then be sold to a buyer. The buyer could be paying more for shares of NYLD if the assets were sold to it with the benefits. The transaction could also include buying development projects, especially wind. PEGI could also buy some projects from NRG to sell them back to NYLD, would that be something?

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NYLD was downgraded by DB

Deutsche Bank analyst Jonathan Arnold downgraded NRG Yield (NYLD) to Hold saying NRG Energy's (NRG) plans to exit the renewables business creates a less certain path forward for the company. The analyst sees potential outcomes that could benefit the parent, while "not necessarily being entirely optimal" for NRG Yield's public float. The analyst lowered his price target for the shares to $18 from $19.
 

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