Algonquin Power & Utilities Corp. (AQN)

[Enterprising Investor]

AQN needs to divest assets to pay down debt.

Its Regulated Services Group provides a portfolio of rate-regulated water, electricity, and gas utility services. It offers electricity distribution, water distribution, waste water treatment, and natural gas distribution services. The Renewable Energy Group generates and sells electrical energy produced by its portfolio of renewable power generation facilities primarily in the United States and Canada. It owns and operates hydroelectric, wind, solar, renewable natural gas, and thermal facilities.

CS believes that the hydroelectric assets are overlooked.

These assets produce high margins and could command a higher multiple.