Investment Q&A

Q: Good Afternoon
Today the stock is trading 2% above Transalta's offer of $13
Is this significant with respect to getting another bid?
Thanks

Q: Just reading about the takeover of RNW by TA. Not really interested in TA as I need income and the reduction in yield will go from 8.55 down to 1.88% with only 1.03 shares of TA for every share of RNW. My question is if RNW happens to trade above the $13 mark, will it be better to just sell all of those shares if this happens?

Thanks
Jeff

Q: Hi Folks,


Retired income investor.
I recently disposed of FSZ and am now thinking I should do the same with RNW and NWH. All down considerably since acquired!
Do you think it is best to eliminate these two or hold?
Also please suggest your safest alternatives with reasonably good yields.

Thanks very much.

Q: Which of these two would you think the dividend is in most jeopardy? Do any have growth potential?
would you hold either?
Thanks
jeff

Q: Retired divvy investor. Getting ready to dump RNW
Could you rank your top ten stocks with a decent yield but with a decent chance of growth as well.
Thanks
Jeff

Q: Hi Team,

Do you have any very recent updates on RNW?

Is this one a lost cause? Should I bail?

Thanks for your help.

Q: Have held RNW for about 6 years, and seen it go up, then down, then way up and way down. At the moment I am up a couple percent on the stock price (not including dividends). I know they had some issues with their off-shore turbines, and recently I have read some comments about them probably reducing the dividend in the near future. Could you comment on RNW in general, and the dividend issue in particular. Do you think it might be better to take a small gain and move on, or just sit tight?
Thank-you, Grant

Q: Hello All,

Is it possible to rank my list of utility companies sorting via most financially vulnerable therefore most likely to underperform because of the increased cost of financing. i.e worst to best please.

Is that a blunt but reasonable filter?

Could it be that the "worst" companies have been so badly beaten up that they may be worth adding to for the long haul?


Many thanks

Q: Good evening,

RNW is down significantly in recent weeks. NWH.UN down as well - just not as much.
In November you suggested NWH.UN was still a hold.
What are your thoughts on these two at this moment in time specially wrt income.

Thanks very much.

Q: Hello 5i Team

I previously owned TransAlta (TA), when they cut the dividend in 2015/2016 and took the capital loss at the time.

I have owned RNW since 2015, so I currently have a small capital gain.

Upon RNW and TA news release on December 15, it appears the future for RNW is not great and several analysts have stated the best course of action would be for TA to take RNW private (similar to what Enbridge did with Enbridge Income Fund in 2018). Otherwise they indicated no dividend growth and a potential future cut in RNW dividend.

Questions are:

1 - Would it make sense to sell my RNW shares and purchase TA shares (essentially trading dividend income for future stock growth).

2 - Consider the RNW and TA not buyable and finally sell out RNW and buy something else. Any suggestions?

3 - Where does Brookfield fit in with Trans Alta, as they previously made a deal in 2018/2109 for a future purchase of TA hydro assets?

Thanks for all the information in the Q&A portion of 5i.

Q: Looking to do an “in kind” transfer to my TFSA in Jan - which one would you choose and why?
Much appreciated. ram

Q: when does price get interesting ... is aqn better

Q: They missed earnings but to get punished by a 17% drop seems excessive. Are they paying for the sins of Algonquin here? Are there reasons to be concerned?

Q: RNW attributes much of the bad news in its Q3 results to lost income from and rebuilding expenses at Kent Hills, and given management's comments ("Rehabilitation is targeted to be completed by the second half of 2023 for the Kent Hills 1 and 2 wind facilities"; MD&A p14), it looks like these losses will continue for at least three quarters (possibly offset by cost-recovery from third parties and their insurers.) All that admitted, is there some forward-looking point at which RNW becomes attractive again?

Q: What do you think of RNW for valuation, growth and dept for the next few years.

Q: What's lit a fire under the renewables all of a sudden? The market has suddenly fallen in love with them again? Is this a temporary fling or likely to last?

Q: With the expected increase in electricity needs from the world-wide introduction of electric vehicles, I would like to establish a full position in one or two of the above renewable power companies. Would you please rank them in terms of current valuation, debt, revenue growth and dividend growth. Which would be your overall preference for a 5-10 year hold? If you have another recommendation, what would it be?

That you for all the assistance you provide the DIY investor.

Don

Q: Renewable energy has been beaten up over the last year and seems to be fairly cheap at the moment. With quantitative tightening and raising interest rates on the horizon, would it be prudent to wait to see what happens with inflation before moving into this sector? Which of these names do you prefer? Thanks.

Q: I am looking to add a position in Energy & utility sector and grow the dividend portfolio, today RNW had more than a 10% drop, is it time to buy?

Q: All the renewable stocks other than BEP.UN are getting beaten up today. Any news that I missed. Could it be Tax loss selling since the sector is one of the few that has done poorly this year?