Q: Hi 5I
With respect to PPL could you briefly explain How would one participate in the secondary offering and what are potential ups and downs to be aware of..
thx
jim
With respect to PPL could you briefly explain How would one participate in the secondary offering and what are potential ups and downs to be aware of..
thx
jim
5i Research Answer:
We have comments posted on the acquisition. For the financing, one needs to have a brokerage account with one of the underwriters (TD, RBC, Scotia) or deal with a broker that has access to the deal. We would simply contact the broker one deals with to enquire on availability. PPL stock is not risk-free, but we like it for income and growth, and the acquisition is accretive to cash flow. The stock is sensitive to interest rates so if rates do decline it may do better. Its dividend is attractive and secure (not guaranteed). We like its potential. But slowing growth, high inflation, higher interest rates or a poorly integrated acquisition are always risks to be aware of.