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Crown Castle Inc. (CCI)
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Algonquin Power & Utilities Corp. (AQN)
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Vermilion Energy Inc. (VET)
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Magna International Inc. (MG)
Among these names, we see AQN as more of a high-risk name, as the leverage level is quite high. Net debt/EBITDA is currently around 8.5x, AQN is also investing heavily into capex, and has already cut its dividend once. It is in the process of selling assets or spinning out its renewables division, and we see it more as a HOLD than a sell because of this. But we would be fine with a tax-loss sell if applicable, with a view to look at it again when rates move lower.
Other than that, we think the other names are fine, we think as a group the other three names could expect a decent recovery when interest rates peak and the economy recovers, but investors need some patience on these names. VET has not joined the energy party yet, but is extremely cheap and has a rock-solid balance sheet, so we think it is fine to hold. We have recent comments posted on CCI and MG we think could do quite well from current levels.