Investment Q&A

Q: What's the reason behind the current slip of BEP.UN/BEPC and BIP.UN/BIPC? These two combos should be steady industrial stocks and not subject to the stumble currently affecting the tech stocks? I know both had been up nicely over the past year but that's no reason to reverse so sharply of late. Any insight you can share? Thanks.

Q: In your answer to Steve on BEPC vs BIP.UN differential: can you explain why these two should be thought as linked together? I get that BEPC and BEP.UN are linked as they represent the same company.
Would you agree that the growth for BEPC/BEP.UN will be muted this year (servicing debt is going to go up) and financials (US banks) would see better growth potential? Would the growth issue apply to AQN as well (for the same reason)?

Q: Can you explain why these companies always appear to lose money ? Is there another way of gauging if these are companies that should be owned ?

Thanks,
Robbie

Q: The differential between BEP.UN and BEPC is down to a reasonable 7.8%. But between BIP.UN and BIPC the differential is very high 23.7%.
Can you explain the reason for this discrepancy. I believe this would be an ideal time to sell BIPC and use the proceeds to buy BIP.UN. Do you agree.
Thanks for your great service.
Steve

Q: Hi Peter and team, Just thought I would ask about the ethical aspects of this so called hostile take-over? In my mind BIPC only with the support of BAM.a and BUFFALO AQUISITION CORP. aka BIF IV (looks like a shell company to me that) are trying to BULLY in here on long suffering shareholders of IPL. Let me try to put this in perspective, IPL has spent nearly four years and nearly four billion dollars engineering, designing, procuring, and constructing and world scale propane dehydrogenation (PDH) and polypropylene (PP) facility, all to the boohoos of the so-called "investment community". The projected increase to IPL's EBITDA is estimated to increase by $400million to $500 million (a double), not including the recent increase in PP prices. Do you think IPL could get one good word out of anyone? Nope, they all stayed clear, even after IPL raised $700 million with the sale of 50% their Europe storage assets. Now IPL is self funding the project thru to it's completion (which significantly de-risks the project from a monetary point of view. Last CC management shared they are ramping up for testing and commissioning which looks like PDH should be up and chugging along by summer. I've been working in the energy industry for 42 years and can share, that a typical approach is to use IP, from patented chemical processes and copyrighted proprietary equipment that is proven. This isn't rocket science. What recourse do shareholders have considering BIPC aka BIF IV have acted unethically by acquiring an additional 10% of IPL without disclosing this to anyone? Who are the responsible authorities that should be looking into this? I would like to thank BIP for acknowledging the new facility has a great business plan as well as PPL ,as they have an almost exact replica (delayed by COVID19) planned in next year.

Q: Hi Peter, further to my previous question, Please advise what you have (and your source) for the short positions for the above equities. I have:
BAM.A=1.32%
BIP.UN=0.62%
BIPC=1.56%
IPL=0.00%
PPL=0.84%

Thanks

Q: I own a cross section of the Brookfield companies for a long term play. would you consider them a economy recovery theme?

Doug

Q: For a three year hold what company do you prefer and why? Thanks.

Q: Hi, your thoughts please on how BIP will pay for IPL. What is the possibility they will need to issue new shares which would be dilutive? Thanks.

Q: What are your thoughts on BIP's bid for IPL? I hold some IPL - wondering if I should sell it and cut my losses since it's trading at a $1 premium over the $16.50/share offer, or what the benefits/downsides are to waiting it out.

Q: Can I have your thoughts and analysis on these two Brookfield company's recently announced earnings. Thank You.

Q: Is there a Canadian Co. that might benefit from the proposed Infrastructure spending that U.S
President Biden is planning for the U.S.? Would this Co. have to be listed on both the Canadian & U.S. Exchanges? I want a stock that qualifies for the Canadian DTC. I find BIP.UN & BIPC a bit baffling. Last March, BIPC was created & I thought it was supposed to mirror BIP.UN but as of last Friday there was a $20 difference between the price of the two stocks. When I look into BIPC which I would prefer because of the DTC, most of its holdings are in Brazil & the U.K.
Thank you: Jerry

Q: Hi, purely in terms of relative dividend security could you please rank the above blue chips companies over the next 5-10 years.Thanks.

Q: Hi:
Did I misunderstand the answer to ? asked a few days ago about BIP-UN.TO? Is it eligible for the Cdn Div Tax Credit for a Cdn citizen?
Thanks: Jerry

Q: I've been looking over the large variations in valuations between this stock's ticker prices in both CDA and US. I noticed the yield between BIP:US and BIP.UN is rather tiny. Just curious, between all 4 tickers which offers the cheapest entry? If yield is included does that rearrange the order? As a separate issue could you mention the withholding tax metric as it has nothing to do with what an American calculates into a purchase of this stock?

TIA

Q: In response to a recent question from Alan regarding what you felt the BEPC over BEP.UN price premium should be you said "We think 10% to 12%"

What about the premium for BIPC over BIP.UN? Do you think it should also be 10 to 12%? BIPC is currently trading approx $11 or 32% over BIP.UN.

Q: I saw the Q's on this stock today and was intrigued by the outsized (to me) performance of BIPC vs. BIP.UN on the upside and now on the downside. Am I to understand that the growth is exactly equivalent and the price differential is strictly on the dividend taxability? I have trouble understanding the institutional (I assume mostly) thinking on this. How many years would it take of dividend savings to account for the difference? Or is that a dumb question?

Q: Hi:
Different sectors but what would your preference be for new money. National Bank or
Brookfield Infrastructure?
Thanks: Jerry

Q: I owned BIP.UN for several years with the spin off I was also owned some BIPC. The units have done well in the past until this year, it was flat. Meanwhile the shares have virtually doubled since their issue. I'm a primarily growth investor and sees yields as a "fringe benefits", would you consider switching the units entirely over to shares?

Certainly the deciding factor would be whether the shares' combined return (growth and yield) would outpace those of the units? Kindly share you insight on this issue. Thanks.

Q: Hi,
Following the Dec18 question of Carl on BEP.PR.M, I have a remark about BEP/BIP preferred shares. These are not pure dividend plays. As for BEP/BIP common stock, revenue is a mix of ROC (30%-40%) /dividend and some interest. Could make a difference where you want to hold them, coming tax time…. FYI : Tax links are available for BEP/BIP common and preferred shares at https://bep.brookfield.com/stock-and-distribution/tax-information and https://bip.brookfield.com/stock-and-distribution/tax-information . Cheers to all.