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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: I own both PPL and BIP.UN. It seems that IPL wants a deal with PPL having rejected BIP.UN's latest offer.
My question is the "potential deals" that PPL is chasing down. They are looking to partner with indigenous groups for TMX and of course the IPL deal.

Will their balance sheet be able to handle this if they are successful with both?
What are your thoughts on the management team's ability to combine these businesses into 1 large company?
Does that change your opinion about PPL as an "income" stock to an income stock with growth potential?

Thanks for your comments

Read Answer Asked by Rudy on June 22, 2021
Q: I have just sold my Inter Pipeline stock which was about 2% of my portfolio. I am looking to re-deploy proceeds. Was considering investing in Pembina but am now wondering if Enbridge would be a better play but am unsure of where things stand with the Michigan pipeline. I would appreciate you thoughts on PPL vs ENB. I have a 10 year investment term.
Read Answer Asked by Ronald on June 21, 2021
Q: Hi
Please note PPL is not available in the short search. It was required to add :ca to bring it up.

Would you please expand on your comment earlier about Brookfield wining the bid for IPL? Was this just because the bid is out there or do you have an opinion.


In my position Brookfield deal is a big loss due to taxation(25% capital gains hit) as well as the benefit of holding PPL shares ( dividend, growth, Heartland participation, PPL Reputation) The share price of IPL is now tracking PPL (0.5 x $41.40 = $20.70) and is way above the Brookfield offer($19.50 Maybe? or some kind of shares?).

Brookfield offer is no longer financially better than PPL offer.

Is there something else in this?
Dave

Read Answer Asked by David on June 18, 2021
Q: A question on PPL, specifically regarding the potential for it having to tap the debt markets, possibly in a very material way, given its ambition to close on IPL, build out LNG growth with its plans announced yesterday, and its rumoured desire to bring TMX in-house as well. Could they actually achieve this - financially - from the base where they sit today? Would it be wise to take a position in this ambitious set of (possible) plans, or would the debt simply be too much for the rating agencies to like, and therefore be an overhang on the stock?

Appreciate your views very much...
Read Answer Asked by Warren on June 11, 2021
Q: Lots of questions on this topic! Senior, primarily dividend oriented but like some upside catalysts... Would it be an entry point for ppl given all the noise or wait till dust settles. I hold enb and divested most of my IPL as a precaution but looking to enter PPL or would it be wiser to wait and see where the dust settles. If PPL is not successful in the acquisition might they see a significant pull back ?
BTW not a BAM fan don't trust they would be good for IPL
Appreciate your commentaries
Read Answer Asked by Ken on June 07, 2021
Q: Looking to add another pipeline for my Rif account. Have ENB already. Can you rate them in terms of dividend sustainability and modest growth, please and thanks.
Read Answer Asked by Henry on June 04, 2021
Q: I own both IPL and PPL and thank BIP for the boost. Noticeably Brookfield has also made a few dollars just by bidding.
- Are there regulations on a 10% owner of IPL, running up the price to PPL ?
Read Answer Asked by Cacey on June 03, 2021
Q: I hold both Interpipeline and Pembina. If the PPL takeover of IPL goes through, I will have a bit more PPL than I am comfortable with, and would consider moving a portion to a company in a similar space. Assuming the deal happens, how would you rate the combined PPL/IPL compared to similar alternatives ENB, KEY, TRP. Could you give a rating for each of the 4 on a scale of 1 -10 for desirability as a long term hold in a balanced portfolio. Looking at total return over a 5 - 10 year period. Thanks.
Read Answer Asked by Dan on June 02, 2021
Q: Greetings,

I have 4% cash currently and would consider short term opportunities. With a new competing bid IPL is trading below the offer price. Do you see an opportunity here to purchase IPL and hold for the sale and possible counter offer? Or is the difference more related to the half cash half PPL stock offer which will be more volitile? Hence risk. I appreciate your insite.

Cheers!
Read Answer Asked by Duane on June 01, 2021
Q: I realize it is early in the acquisition, but would you be able to highlight the move, and give us your thoughts on the new, and hopefully improved PPL with the addition of IPL and the amount of debt they are taking on. Thanks
Read Answer Asked by Greg on June 01, 2021
Q: An analysts recently warned off on PPL. He cautioned that PPL using a reduction in dividends, might develop a planned but delayed refinery. Something along the lines of what IPL is doing with Heartland.
Would you trade all, some or any, of a long term and large percentage holding in PPL for TRP ?
Read Answer Asked by Cacey on May 28, 2021
Q: Hello, and thank you, to all of the 5i Team for the insightful investment advice!
I will be selling some Pembina Pipeline shares within a year’s time frame. Do you see any short term upside for the PPL share price, or will they most likely encounter some resistance at the $40 level, and stay range bound without some major mover? Thanks in advance!
Rod
Read Answer Asked by Rod on May 19, 2021
Q: Hello, given the current US$ exchange rate and the loses still incurred on a handful of CDN stocks, I'd like to hear your thoughts on selling the decent dividend but significant double digit % loses to acquire more US$ and move it into GOOG & FB. Alternatively I have considered adding to VFV or starting a position in VGRO and leave it as CDN$. I am ~25% in USD of which I plan to use so I am not concerned with adding a few more points of USD. Thank you for your opinion.
Read Answer Asked by Randy on May 07, 2021
Q: I have had a nice recovery in the pipelines that I hold (IPL TRP PPL ENB). I am contemplating selling one of them and buying BEP.UN. do you think this is a good idea? and if yes which one would you sell? many thanks Richard
Read Answer Asked by richard on May 03, 2021
Q: Supposing the US enacts an effective climate change policy, shouldn't gas do better than oil/coal/tarsands, etc? If so, who among Canadian energy processors/transporters should realize the greatest benefit?
Read Answer Asked by John on April 28, 2021
Q: I hold the above in my income portfolio. With the exception of psi they are half positions. psi has diminished to well under a half position. I have enough new money to top 4 or 5 up to full positions. Which of the above (if any) would you suggest deserve a full 5% weighting? I am of course willing to move in a new direction if that were your advice. I currently hold 24 positions in this account.
Read Answer Asked by Rod on April 22, 2021
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