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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Although I have referenced AQN and FTS in this question, I am hoping you can apply your answer to utilities in general.

My question is how do these companies operate such that some are considered to have good to great growth potential while operating in a sector that tends to be highly regulated in terms of pricing power. The major companies tend to be acquisitors. However, unlike other industries, buying another company doesn't improve pricing power, eliminate competition or reduce selling costs through operating synergies (or at least I don't think they do.) Ontario Hydro's purchase of a company in the US northeast comes to mind here.

I can see that financially, larger companies may have lower costs of capital and higher cash flows which could lead to quicker modernization and better upkeep of equipment but is there more to it than that? What am I missing that makes AQN a growth story and not just a dividend producer?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on August 18, 2017
Q: I currently hold DHX in an RrESP account which I will be winding down over the next 4 years. The stock has come back nicely over the last little while and wonder if this momentum will continue or weather I should take this opportunity to exit. This stock was originally purchased for capital appreciation given the low dividend.
Thank you.
Maggie
Read Answer Asked by Maggie on August 18, 2017
Q: Do you have any insights into Smart Sand versus Fairmont Santrol.
The price has dropped significantly and usage of sand within the industry is falling at this point in time. Is Smart Sand highly leveraged or do they have a good balance sheet and will survive ...... maybe it's time to add to my position.
Thanks DAN
Read Answer Asked by Daniel on August 18, 2017
Q: Re: Infosys (INFY)

Hello, This question is out of your scope but I would appreciate your thoughts. This stock is down about~ 10% due to the resignation of CEO. This is a solid company and has revolutionised IT and has made a huge impact on India. I am wondering if this is a good time to start a small position. Can you look at the financias and give me your thoughts. Thanks. Regards, Shyam
Read Answer Asked by Shyam on August 18, 2017
Q: Kindly critique the ABT results released last night after closing. I'm interested in particular its forward prospect. Thanks.
Read Answer Asked by Victor on August 18, 2017
Q: Good morning...I have a balanced portfolio and have additional cash to deploy...I basically own more or less 5i covered stocks...currently out of ENB, ATD.B, New Flyer, SHOP, CSU..would you add to? Also OTEX which I am holding but currently down (18%) would you add at this point..

Another question...if you had additional funds what would you be adding to on your covered stocks...no worry of allocation...top 10 in order..

Thanks
Read Answer Asked by Matthew on August 18, 2017
Q: Hello, I am thinking of lightening up on SHOp where I am almost at 9% and buying AAPl as a replacement where I already have a half position. I would appreciate your thoughts on this. I am not quite sure why Apple is raising money in the form of bonds..while it has a lot of cash.
But the next version of iphones are much anticipated..I get this insight from my teenage children.cheers Shyam
Read Answer Asked by Shyam on August 18, 2017
Q: Please deduct credits as required.
You recently published an excellent report of Midstream Oil and Gas Companies. I would like to compare them with ENF so I would like you to provide the same metrics;
Image5-D/E,
Image2-YoY %Dividend Growth from 2016 to 2020 with 4 Yr CAGR,
Image3-Payout Ratio from 2012 to 2016
Image4-Valuation, P/E, EV/EBITDA, EV/Sales, P/CF, P/B
Read Answer Asked by Ian on August 18, 2017