Q: Could you rate these company's expected performance over the short and medium term( next 3 years)? Which would you sell first for tax loss purposes? Thank you
5i Research Answer:
Neither have done well, and continue to be shunned by investors. AQN is significantly cheaper on a valuation basis, and took its lumps earlier, so now it may be more in recovery mode as interest rates pivot. It is also selling assets and sentiment may have bottomed. We would still not consider it 'great' but at current levels we would prefer it over three years over NPI, and sell NPI first. NPI is expected to show more overall growth, but this is embedded in the valuation and the company has had execution issues so the growth needs to be realized better.