Atlantic Power looks like a five bagger

With the current managements thirst for stock repurchases this could be a ten dollar stock. The management has repeatedly said they would be buying back stock if they were not buying back debt. At the current rate of debt buy backs the company will have reached its conservative leverage goals by 2022 and will most likely start buying back shares in large chunks. With a float of 111M shares outstanding there is plenty of room for repurchases. The possibility of the share count dropping substantially is not unreasonable considering it would only take the company 2.5 years ($100M FCF/$250M MC)* to accumulate all the shares outstanding.

A simple equation shows the potential:

20M shares outstanding / $250M market cap = $12.5 share price

When considering the current FCF we should see a higher valuation for this company eventually. But even if the 2.5x FCF multiple stays consistent, the current management will eventually bring down the share count which gives this investment multiple avenues for potential appreciation.

*Free Cash Flow (FCF)
*Market Capitalization (MC)