Investment Q&A

Q: I just sold the above stocks to harvest tax losses. I intend to repurchase them in 30 days. How important (or prudent) is it, in your opinion, to purchase proxies for them? What could you recommend if your feel it is useful to do so?

Appreciate your insight.

Paul F.

Q: Many utility companies have lost half of their market capitalization from their peak. Do you anticipate any utility companies being potential takeover targets in the upcoming month?

Q: Hello,
Based on their financial statements, are these companies worth keeping or exit before year end for capital loss?
Thanks
CR

Q: Can you please tell me the estimated forward P/E for the above 4 utilities. Could you please rate from best to worse for potential total return over the next 2-3 years.
Thanks

Q: I haven't been following the market too much for several months and was shocked to see that AQN has fallen dramatically (from about $10 to $8 in one month). I don't see much news or questions on AQN. Any insight into why there has been such a dramatic drop?

Q: 40-70% losses on paper on these 4 Cies ,2 are now under book value and one is getting close,I wonder if there is a limit on the downside.At this level I am ready to wait for some kind of recovery..Would a "switch" between these stocks or even a sell would be to consider at this level ?I know that predictions are impossible,but your impressions are always appreciated..

Q: I am a long-term buy & hold type of investor. There are 3 companies in my portfolio with renewable energy assets--AQN, BEPC, NPI-- with percent weightings in my portfolio of 0.7%, 0.9%, and 0.8%, respectively (2.4% in total). I have an unrealized loss with AQN of ~$40,000, and so was thinking of crystallizing the loss-- temporarily shifting the proceeds to BEPC--with a plan to re-buy AQN in >30 days. HOWEVER, given that AQN is planning to divest its renewable energy assets (correct?) and given that I have lots of other utility exposure (FTS, EMA, with these 2 securities totaling 3.5% portfolio weighting), perhaps it would be better to just keep the proceeds from the AQN sale in BEPC (and perhaps also upping the NPI holding somewhat), and not bother re-buying AQN in >30 days time. With the general caveat that you are hesitant to give "personalized" advice, how would you handle this type of situation?

Ted

Q: Hi 5i,
I like putting you guys on the spot because I can get objective opinions.
If one wanted to buy and hold either CU or AQN today for an RRSP with no short or medium terms plans to sell (ie collect income and hold for long term). Which one would you buy and what would be your high level reasons? I already own a full postion in BIP for my RRSP but I think another multi-utility might be good to own since they seemed to have depressed prices and very good dividends.

Q: Hi 5i

Is anything expected of AQN in the near to mid term to turn its fortunes around ? You've mentioned previously you consider it a hold ... how long would you monitor this one for signs of a turnaround ? Frustrated but willing to see how this plays out.

Q: ENB’s large acquisition and stock issue with the resulting (short term) price hit looks like a buying opportunity to me. Thinking of exiting out of AQN as it looks like it’s going nowhere and buying more ENB. Good idea?

Q: Good day team,

A few companies I'm invested in are in a loss position so far.

AQN 42% loss
AD 16% loss
CJT 22% loss
GSY 22% loss

At this point which stock do you think I should keep, which one sell, and which one replace and with what?

I'm retired and 73 years of age.

Take as many points as needed.

Thank you
John G.

Q: Hi Folks,
I currently hold AQN in my RRSP account at a loss of 30%. I am looking at NEP in the US as a possible replacement. May I have your analysis and opinion of such a move or would you recommend holding onto AQN for now and wait to see if anything comes of the "activist investors".
Thanks

Q: hi,
I am contemplating selling AQN. do you have any guess as to what sort of upside potential ( in percentage ) in the short term there may be for any actions (asset sales? restructuring? etc etc )spurred on by the "activist investor". so far, there has been nothing of significance in this regard, and the stock price reflects this, I think? if selling, I was thinking of adding to my BEPC to make close to a full position. do you still think BEPC has decent growth potential, and will weather any further rate hikes? is the balance sheet fine still?
cheers, Chris

Q: Hi there, I own shares in both these companies. With AQN’s recent announcement that they will be selling their renewable assets I assume that includes their interest in AY.

Do you have any idea what range of share price this sale would happen at, and whether it’s more or less than AY’s share price today?

I am down on both and trying to decide whether to lighten my ownership of one or both.

Thanks!

Q: Hello

Can you comment on AQN earnings and CEO departure?

Thank you

Q: Hi Folks,
In my RRSP account - thinking of selling my 2% position in AQN. I am currently down 33%. I also have FTS and BIP.UN as my Utility holdings with a 11% weighing for these two.
With that money I would buy a 3% position in APPLE. I also have MSFT and CSU as my holdings in the Tech sector. I currently have a 10% weighing in the Tech sector. ( I also have a 4% position in GOOG not included in the Tech sector weighing)
I have a fairly diversified conservative portfolio.
May I have your opinion as to whether this would be a wise move to make at this time. I am looking at a 10 year time frame and looking to add some "zip" to my portfolio.
Thanks

Q: I have a small gain on AQN, Would consider a good move to switch to TRP. I am not adverse to risk.
Thanks

Q: I sold TRP today at basically a break even price because I do not want to wait out the final outcome of their recent split up plan and to see how their debt is allocated etc. I was in the stock for long term income given I am recently retired. It will be hard to find an equivalent yield, given capital preservation is a prime objective along with the income. TRP was held in a non registered account for tax advantaged dividend income.

With long term capital preservation a goal along with income generation, and that I hold all of the above listed companies already in appropriate proportions and don't wish to add to them or their sectors (no more utilities, financials or telecoms) what other Canadian blue chip dividend companies would you consider for long term hold with decent dividends for income? I also already have enough allocated to bonds, GIC's and cash accounts so I'm not considering these assets either.

Manageable debt levels and ability to maintain dividend growth, hopefully at the rate of inflation or higher is the main criteria I would hope to have in replacing TRP for the long haul. Thank you for your valued insight in giving me suggestions to look at.

Q: I am looking to raise some cash from my RRSP by selling 1 or 2 of the companies named. Please rank the companies from best candidate to sell to best to hold onto with a few supporting comments. Always appreciated. ram

Q: First is Algonquin dividend "safe" and secondly what is an investor to make of the Starboard 5% stake anouncement . Thanks John