Investment Q&A

Q: My question relates to sector allocation. Specifically, I am significantly overweight in Utilities (23%), but underweight in Energy (3%). That said, most of my utilities are related to renewable energy (AQN, BEP/BEPC and NPI, as well as FTS which is starting to tilt toward renewables). Does it make sense to 'assign' a portion of these stocks to the Energy sector? And if so, what percentage of each would you suggest could be reassigned? Thank you.

Q: what are your top TSX choices in the renewable energy space for the next three to five years? Please give your arguments for this selection. Thanks

Q: HI, There seems to be a growing consensus among market watchers and strategists, that Utilities are likely to shine in coming months and years. In this sector, specially the companies which have more exposure to Renewable and Green energy seem to be the favorites. One of the reasons cited for this view is a possible Biden win in coming US elections. We presently have about 9% sector weighting, equally divided between AQN and FTS, but wish increase to may be 15%. Over recent weeks, rising valuations have also reflected this optimism, although, for some more than others.( e.g.,Boralex from $27 to now $41). Which of above companies, in your view, have best potential for growth and prospects for consolidating their position in Green energy ? Also, from valuation perspective, which ones will be your favorites, for more capital appreciation over next few years ? It would help, if you could rank them in preference and explain your reasoning. Thank you for your great insight, as always.

Q: Hi gang, any suggestions for individual stocks or ETF in Canada or USA. Thanks Alnoor

Q: I currently hold Suncor, and am down 50% in a registered account. Sit and wait, and sell and move on. If move on, what would be 3 choices for conservative balanced growth.
thanks

Q: Starting to think about tax loss selling. I have had ENB for a while and see that it is down about 20% in a non-registered account. 1. Good idea to sell now? 2. Buy in the new year? Thanks Dam Dan

Q: For renewable energy, I already have BEPC and AQN. For pipeline and utilities, I've ENB and TRP. I can harvest a small tax loss by selling ENB. Should I use the sale proceeds to add to TRP or buy back ENB after 30 days? Which would you prefer and why? Or would I get much better future growth and financial strength by using the proceeds to buy another renewable energy company like NPI? Thanks.

Q: Have owned these two In my TFSA since October 2019. Since COVID they have not recovered to my cost. DIR has almost got back to break even, But IIP is still lagging. I’m thinking that I should keep DIR but possibly sell IIP. What are your thoughts on these two companies and if I did sell one what would you suggest is a good replacement. Does not have to have a dividend. But have been interested in renewable stocks. Any suggestions. I realize there are several questions here and please takeoff however many credits you deem necessary.

John

Q: ACO.X. I am looking at this one to add to my portfolio. They seem to have their fingers in a lot of pies: modular business must be hurting with the slow down in requisite businesses that support them like O & G. Seem to have a lot of debt. as well. Do you have a break down of each business segments contribution to revenue and profit? It's share price is almost at peak levels as well. Would you buy at current price for a long-term hold as a core position?

Q: Could you please offer your thoughts on these three going forward. AQN has lagged peers in renewable energy over the last six months and I noted from past question responses that its future growth rate is expected to be comparatively low. Is there a problem here? After the recent rally in BEP, Boralex and others are they no longer attractive in valuation relative to historical multiples? Where would you put your cash at this point and are any of them attractive from a growth/valuation perspective?
Thanks for your insights.

Q: Would a Biden presidency create a more difficult environment for pipeline development? If so, which companies would be most affected?

Q: Northland Power has been a rock solid performer for me since I added it to the portfolio in the early days of the pandemic crash. Would you be comfortable adding to it to make it a full position today or would you want to see a pullback first?

Q: 3 Part Question. I need to sell ENB to offset a capital gain in my cash account. Would you sell ENB now or wait until closer to the deadline? I plan to buy it back after the 30 day period. Would you keep the proceeds in cash for the 30 days or replace it with something else for sector exposure? If replace, what would be your recommendation to replace with?

Q: Do u see a dividend reduction for this company as it has a very high payout ratio of 340%. And if they keep the payout from its cash flow, with the current low oil and energy prices, how long can that dividend be sustained. Thank you as always.

Q: Dear 5i team,
I’ve read all (I think) replies to questions referencing these companies, in the last year or so.
I’ve read views that seem so different to what my brokerage says (TD). For example, member Helen noted she was done with SU. I was happy to see you still think it’s best for its sector- TD lists a bunch of analysts who collectively think its a strong buy, as does a couple of reports they include in their screens.

Why are some stocks being rated strong buy but some folks want to sell them for tax losses, or won’t buy them at all?

I can’t see energy (and businesses that serve energy) not getting back on track mid term. Do you agree? Mid term in my mind is 3-5 years. I was thinking that if an investor bought say SU at $18, it moved to $36 in 3-5 years, that is doubling one’s investment. Is that not good enough, or is the underlying issue not doubling one’s money but that it’s high risk of big loss instead?
While I’m using SU as example, I thought these questions were relevant to all these co’s.

Would you think an investor was silly to buy some of all these today?
Please provide the ‘why’ for your opinion, thanks so much.

Please use credits as needed. Thank you ! :)

Q: Please take as many question credits
you need to fully answer this. I would like growth and reasonably safe stocks. I have losses in all of these; should I sell and take the loss? Hold as they are likely to recover in next 6--12 months? Thanks. Helen

Q: This one is very speculative ... For whatever reason, is it conceivable that ENB would slowly remake its business over the next 15 or so years from oil transport into a renewables subsector?

Q: this is down quite a bit since August/2020 when I entered my position.
Is most negative news for oil/gas priced in?
If you were existing holder, would you add to your position, hold or sell?
I love the dividend but is it sustainable?
They have been buyers of distressed companies like Painted Pony but is their balance sheet and lending facilities strong enough to purchase more distressed assets?

Q: Hi,

With Suncor near it’s all time lows, could you please give me three reasons why it is a bad idea to average down on the stock, and theee reasons why this can be considered a bad idea. I have a high risk threshold, and I can afford to wait 3 years.

Thanks a bunch!

Q: The Expert Guests on the TV and satellite Stock Market Shows. Announce with pride, how they have "exited the energy sector". A recent TV Guest, wouldn't touch Suncor @ $15.00, then proceeded to issue the benchmark "buy" on Apple. I was in line at the time, waiting to fill up at a Petro Canada, along side a truck packed Hwy 401.
Energy has taken it hard as of late and for obvious reasons, but how much of Suncor @ $15.00 is real ? How much if any, is that hydrocarbons are for now, out of fashion ?