Investment Q&A

Q: I have all three of these positions.

I'm happy to keep my capital invested in the Brookfield empire, but it feels inefficient and not thought out the way it sits in my portfolio, almost like a series of afterthoughts.

The breakdown of the three (as a % of their cumulative totals in my portfolio)

BN = 57%
BEPC = 8%
BEP.UN = 35%

(Ignoring the whole tax schmozzle with reg vs NR accounts),

Would you recommend any changes? That could include adding another Brookfield entity as a possibility.

Q: Brookfield renewable continues upward trajectory, however small. Do you think it has scalable potential for the future or is its growth either as a sector or company muted with the tide moving out somewhat on renewable power?
What do you see as future growth potential?

Q: I can't keep all these Brookfield companies straight. If you want some growth with a dividend, for a long term hold, which would you prefer and why?

Q: What explains the big increase (around 7-8%) of the value of these stocks today? What do you expect for the future and what is best to do (buy, sell or hold)?

Q: BEP Brookfield renewal property is yielding over 6 per cent at the current unit price and it is trading in a tight range (about $30 to $33) the past few months. I add to my position when it gets near $30 and trim it when it gets near to $34. I think it is a good company to hold for income but what about capital appreciation? This stock used to trade up around $50!! Was that due to the 'green energy hype" of the past? I know that cost of capital is very important to high capital, low margin industries like power production, but BEP should have pretty low cost of capital since it belongs to the Brookefield group of companies, right?? Also I have scoured the company website to try and find out how aggressive BEP depreciates their assets, particularly the wind and solar since solar panels do need to be replaced as do those big blades on the wind turbines. I would like to know if BEP is depreciating these assets quickly enough, but I am not sure where to get that kind of info.

Q: After reading Peter's May 29th question on withholding taxes on Limited Partnerships [LPs] I worry a lot about the Brookfield companies, in particular about BEP.UN = Brookfield Renewable Partners LP. and BIP.UN = Brookfield Infrastructure Partners LP. Are these not limited partnerships?

You say they are "domiciled" in Bermuda I believe, and BAM is moving it's head office to the US so it is all most confusing. Are these companies safe to own now or should I just sell them and move on to other less worrisome companies? They are in my cash account. Trouble is I have very large unrealized capital gains in BIP.UN and BEP.UN and nice dividend income so really don't want to trigger the taxes.
Thank you......... Paul K.

Q: BEP hit an air pocket today may 22nd with a drop of 4.5% at the time of writing. The only thing I found that could explain it is Trump's "Big and beautiful" tax bill that, it seams, cancels the clean energy incentives. Do you think the drop is warranted or is it mostly a Mr. Market knee-jerk reaction? -- It seams to me BEP's international diversification should have cushioned the incentives cancelation.

Q: I understand that the U.S. house reconciliation bill includes some negative wording re clean energy tax credits and this is a possible reason for BEP to be down in today's trading.
I'd appreciate your evaluation of this - is it a major risk for BEP?

Q: Hi, are BEP.UN and BEP are same stock? Do you have a preference? Is it best to purchase in a non reg or reg account? Thank you.

Q: May I have your comments on earnings please

Q: Can I have your thoughts on th quarterly results reported this morning? I found the news release quite encouraging, despite a languishing stock price. The results seemed pretty good to me, they are buying back shares, they report terrific demand for their product, and they say the tarif chaos gives them more and better opportunities to expand. So why is the stock price languishing??? or am I missing something

Q: I'm a well diversified investor holding 70% income and 30% growth stocks, I want to add one or all of these companies for income and for potential growth. How would you rate them in terms of best choice. And could you recommend a good entry price point to buy any of these. Thanks - great service!

Q: Hi Peter & 5i Team,

I'm looking at the 3 month, 6 month and year-to-date charts of BIP.UN and BEP.UN compared to their peers (EMA and FTS). What would you attribute the reasons for their underperfmance? The 3 year chart for both of these Brookfield entities isn't exactly stellar as well.

As always, your comments and insights are highly valued.

Q: I read somewhere that the recent weakness of BEP.UN/BEPC is due in most part to tariffs on China imports of solar panels and wind turbine components, rendering many projects in the pipeline to become uneconomical and thus,materially reducing expected future growth. What do you think of this thesis? -- Or in your opinion, is the weakness in price are mainly caused by general market conditions and bad sentiments?

Q: I sold these stocks for tax loss harvesting just over three weeks ago. Please confirm how long I have to wait before I can buy it back - 30 calendar days?
Thanks for your great help and advice.

Q: What would you think about tactically moving / trimming from EMA / FTS - the more regulated utilities to ones like BIP / BEP given the big differences in performances YTD. Would you not feel that when the markets recover EMA / FTS will be used as a source of cash?

Q: I am considering taking positions in both of the above companies. Is there any redundancy in this proposal, i.e., would bip.un assets cover what bep.un owns and beyond.

Thanks

David

Q: Hi 5i Team - Could you name a few companies that service AI data centres in a structural way such as construction, maintenance/repairs, cooling, etc. Also a few companies that provide the power needed to run these centres. These would be stocks that have good growth ahead of them. Any market cap is fine but at least one small cap and a couple of mid caps. Also a combination of U.S. and Canadian companies.
Thanks.

Q: Would you consider taking a 27% hit on whitecap for tax loss and replace it with Bep.un to get the 7% yield I was getting with white cap before the nose dive. Do you consider the dividend to be secure along with better growth? Tks. Larry

Q: Good Morning,

Do you think it is worth adding to Brookfield Renewable at today's price ?? Its price behaviour is certainly unlike FTS or other electrical utility sector stocks. Would it make more sense to replace it with BAM ?? I am looking for income and some growth. I would appreciate your expert opinion. Thank you. DL