Investment Q&A

Q: I currently hold positions in two drillers - CET and HWO. I am looking to consolidate my holdings into one driller. CET and HWO are pursuing very different strategies going forward. CET is acquiring firms and HWO is divesting assets. In your opinion what is the better company to keep or is it too close to call?

Q: if SMRs [ small modular reactors ] take off , what businesses and spin off companies good really benefit from power producers of this sort ? thanks , have a super week.

Q: About 10 days ago, I read that AQN was selling 49% of 3 US wind farms and an 80% stake in a Canadian wind farm. Doesn't this dilute the company's objective of being a renewable energy firm? Did it make a lot of money from the sale, was it a loss or can you shed any light on the sale? The share price has dropped about 25% in the past 2 months and the dividend in now comparable to the dividend of ENB. AQN is projected to increase its dividend another 6% at the end of 2022. Does any of the above or other factors, such as payout ratio, etc. significantly affect the risk profile of the dividend payout ?
Thanks a lot for your views. It is amazing to me that you can provide very reasonable perspectives on such a wide range of stocks and topics.

Q: Please comment in more detail about the 25% drop in share price in the past month, the massive debt load at over 3x total equity - to increase I assume with recent acquisitions, and on what appears to be a major revaluation by the market. In your last report on BEP.UN (July/21) you stated the 12.4x forward sales multiple (at the time) was the lowest since 2019. Currently BEPC appears to be trading at less than 2x sales.

Q: I read where the operator of the Sakhalin-1 oil and gas project in Russia's Far East has been changed by Russian gov't decree. What is the risk for a firm like Parex or others with significant foreign operations to be affected in the same manner, including being nationalized?

Would you have a list of the larger energy companies with significant foreign operations? I know from my past work in the oil and gas industry [40 years ago] nationalization insurance was available. I'm not aware if it is still available or not.

Thank you

Q: In this time of rising interest rates , do you think one should hold on to EMA and FTS for the longer term or should I sell if you think they may tank a lot more?

Q: Two months ago I sold AQN to harvest a loss and reinvested in ACO.X which has slumped ( like the market, like the sector). I'm now looking at the AQN yield and wondering whether taking a loss in ACO and re-buying AQN is a good move. I can use the losses but its not urgent. Your thoughts please? thanks. Al

Q: why the downward trend for both. any concerns. would you add to a small position

Q: Pref shares have been generally weak lately and today AQN-PR-A is down 8.4%. I see no reason for this. Your thoughts? Does it make sense to add to my position at this price? Effective yield is now 6.8%.
many thanks

Q: I understand the WCS price of oil is heavily discounted from the WTI. would it follow that the WCS producers should be avoided? Which of the following companies would be WCS dominated: ath,bte,erf,gxe,lou,meg,cpg,cve,joy,tve,wcp,cnq,cj

Q: Cameco and Brookfield Renewable Form Strategic Partnership to Acquire Westinghouse Electric Company.

Do you see this as a meaningful addition for cash flow, or mediocre?

Thank you.

Q: I am looking to retire in the next year, and positioning our portfolio more toward income.

Within the utilities sector we held AQN, BEP.UN, BIP.UN and CPX at close to equal weights 3.1-3.3% each (market value).

I recently sold AQN at a 20% tax loss and initiated a new position in FTS (yielding 4.25% after it's big drop). This will be a long term position.

I'm up approx 50% in CPX and even on BIP.UN.

I'm currently carrying a 16% loss on BEP.UN, and am thinking of selling it for a tax loss (I have significant realized capital gains to offset).

I'm considering either splitting the proceeds between BIP, CPX and FTS; or waiting to sell BEP after the 30 day period on AQN has passed, repurchasing it to regain the lost dividends and for diversification.

From recent questions I understand that AQN's dividend is likely safe, and is considered sufficiently different from FTS to support owning both. I like that it is at 2019 levels, and think there is a good possibility it may reward a patient investor. Is debt a concern?

Which course of action would 5i recommend, and why?
1. Sell BEP at a tax loss and split the funds between BIP, CPX and FTS; or
2. Sell BIP at a tax loss and repurchase AQN,
3. Or is there another course of action that you'd recommend?

Thanks!

Q: How does this company make money. Buy, Hold or SELL

Q: I am trying build a list of buy and forget core stocks for each sector. I hold the following utilities in various accounts: FTS, BIPC, BEPC, AQN, NEE, BLX, NPI. Can you please rank these for safety and also for growth. I hold BLX in a corp account because it has the lowest yield - do you see BLX as a long term buy and forget stock? Thanks.

Q: What energy stock would be a good pair with TOU Tourmaline?

Q: Capital Power has been solid and steady up until now. What has happened to cause this 6% slide today?

Q: I own AQN in my dividend growth portfolio and would like to add another utility. Is Fortis to similar to AWN or different enough for a diversified portfolio. Also thining of Emera or perhaps ATCO for better diversification. Which of these or others would be your preference for another utility in a portfolio?

Q: Along with renewables also utilities like H,AQN, FTS are diving-could you comment?

Q: What do you make of the slip in share prices of BEP.UN (-15%) and BIP.UN (-9%) during the last 30 days or so? These drops are rather substantial for those two traditionally stodgy unit trusts. Thanks.

Q: I'm thinking about selling PXT now (say mid-October) to lock in the tax loss early, and then buy back later (over 30 days, of course) at a even lower price (gaining more shares hopefully).

I know PXT is depressed due to the local political issues in Colombia. Do you have any updates on these problems? What are your views on these situations? Is PXT still a good investment? Thanks.