E Boston Weekend

Back from Boston where we spent the weekend at our youngest grandchild's Bar-Mitzvah (Jewish coming of age ceremony) in the flesh, our first trip in nearly a year of lockdown. we were there but the family attended virtually, both in the USA and in Britain where both sides of the family have relatives including my sister- and brother-in-law and their sons and daughters-in-law who never attended the earlier 4 ceremonies in the flesh. We got two 5 page emails from my sister-in-law who has made me a great aunt for the first time, as Evelyn approaches age 2 and sins. The traditional Bar-Mitzvah ceremony includes a prayer of thanks (removed by Reform Jews) from the child's parents, thankful for no longer being penalized for the young person's sins.

Pandemic hotel life was weird. The was no housekeeping and no breakfast room. The room had a coffee machine but only made decaffeinated coffee which doesn't start my day, and the goody bag we picked up at the desk did not include orange juice or rolls or butter, but only icky substitutes. Hence Starbucks. We could not shut the shades to stop light flashes from the parking garage across the street.

US interest rates are lower by 0.02% today with the US 10-yr T-bill at 1.43%. The minimum wage won't hit $15. China reported slow growth in the Feb. purchasing managers' index. US PMI was better than expected. We have news from our companies including one weird share covered by Harry Geisel.

Business newspaper article

image source

*The share is Atlantica Sustainable Infrastructure plc, quoted on Nasdaq as AY, which reported GAAP 2020 earnings of 47%, missing badly which is a good thing, and revenues plus cash distributions up 14.6% from prior FY.

Net cash provided by operating activities, on which our un-taxed dividends rely, which came in up 20.2% at $438.1 mn vs $363.5 mn in 2019, which let to the way to wonderland—cash available for distribution, on which our tax-free distributions depend. The CAFD in 2020 was $200.7 mn, up 5.5% from prior year and it is estimated to come in at $220-240 mn this year producing another tax-free gain (unless we sell our shares.) Mid-term CAFD will be 5% to 8%, on which our continued divies depend. The dividends are not based on actual earnings but on cash generated from one-off debt refinancings from the existing holdings. This cash net of transactions costs, reserves and cancelation of interest rate swaps was the result of 3 non-recourse project debt refinancing operations.

Our fund invests in energy and environmental shares. The negative earnings were the result of lower solar earnings because of higher operating expenses in North America and Kazu because of an outage. I have no idea where Kazu may be and google doesn't either.

Harry writes: “As usual, AY reported a loss in Q4 and the full year. However yield companies usually report losses, why their previous generous dividends count as returns of capital and are deducted by your broker from the cost of buying AY.” He added: “Most AY generating facilities are in Latin America and Europe, plus large ones in Arizona and California. It has nothing in Texas.” If you seek yield, buy more AY. We also own a slice of it via Algonquin Power & Utilities shares, AQN, which gained 2.72% today to $15.88 while AY opened up 4.7% to $37.85 but is now only up 3.97% at $37.6.

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