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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: Hi I am looking to do some tax loss selling. DGC DOWN 25%, GUD DOWN 13%, RNW DOWN 5%, ENB down 5% and SIS down 4%.
Could you give me some options to repurchase for each company if I decide to sell any or all of the above?
Read Answer Asked by JEFF on October 30, 2017
Q: Should I trade AQN for RNW?
I am a senior dividend investor, and would ask for your opinion about this trade, along with whatever positive or negative comments come to mind.
As background, I have a ¾ position in RNW and ¼ in AQN. RNW pays 6.81% and AQN pays 4.22%. AQN is forecasting 10% growth per annum till 2021. RNW has nothing on the horizon, now that South Hedland is up and running, with nothing seen to be coming from ‘daddy’ (Transalta), so perhaps no growth in the short term.
However – even at 10% growth the dividend at AQN will only be 6.76% in 5 years, still less than RNW today even if their dividend remains the same. I surmise that both dividends are safe (would you agree?), and am really thinking “bird-in-hand” makes more sense than future promises. I do realize that if prospects remain the same, AQN may experience more growth, and I may be forfeiting some capital gain (this is in an unregistered account), but a 2.6% differential is a lot to give up for future ‘possibilities’. Since the companies are in the same business – more or less – I also have difficulty seeing any differential in risk one versus the other.
Of note, RNW has earnings on Tuesday. Would you wait until after the earnings release to make this trade, or would you make it now?
I look forward to your comments.
Also, thanks for the 2 year renewal option. I will be taking advantage of that to keep enjoying your very superb service!Thanks! ... enjoy your day!
Paul
Read Answer Asked by Paul on October 30, 2017
Q: Each of the above stocks I have owned for a number of years and am enjoying a good profit. However, in the past year they have just drifted and are simply no longer growth stocks. I am considering selling all or parts of these positions. Could you rank order them for me in terms of what would you sell first and what % of the position. I understand you might also suggest not to sell any of them and in fact add to them. This type of reassurance would be welcome as clearly I have lost conviction in these names. There is no rush here and I don't need to raise capital for other purchases.
Read Answer Asked by Chris on September 20, 2017
Q: Hi, is the following news item material and cause for the further drop in the stock the past few days? Thanks.

TransAlta Renewables Inc. (RNW-T) and TransAlta Corp. (TA-T; TAC-N) issued a release responding to Fortescue Metals Group Limited's "view" that the South Hedland Power Station in Western Australia has not yet achieved commercial operation.

The view was outlined in media reports in Australia.

"All the conditions to establishing that commercial operations have been achieved under the terms of the power purchase agreement with FMG have been satisfied in full," the companies stated in a release. "These conditions include receiving a commercial operation certificate, successfully completing and passing certain test requirements, and obtaining all permits and approvals required from the North West Interconnected System and government agencies. The South Hedland Power Station is fully operational and able to meet all of FMG's requirements under the terms of the PPA."
Read Answer Asked by Gary on August 02, 2017
Q: With respect to the new offering, TD Waterhouse identifies the selling shareholder as "Her Majesty the Queen in right of Alberta by its agent Alberta Investment Management Corporation" which will no longer own any shares after closing. Does this make any sense? Do you see this as positive, negative or indifferent, and what percentage does Transalta still own? I have about a 3% position (held for a long time) and might consider adding.
Thank-you
Read Answer Asked by grant on July 19, 2017
Q: Please list these stocks in order of preference for a purchase today. At present I already own BEP.UN and AQN. Also, does adding a third stock in the renewable energy category result in over-exposure? Thank you.
Read Answer Asked by Barrie on June 13, 2017
Q: I like the cash flow from utilities and Transalta seems to be getting a handle on the new operating environment in Alberta. RNW is approx 60% owned by TA and that would mean the market is pricing TA only for it's share of RNW and assigning no value to the rest of TA business. Are my assumptions correct and if so do you have any idea why this would be so. Thanks
Kenn
Read Answer Asked by Kenneth on March 17, 2017
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