Investment Q&A

Q: Hi,

I own ALA and IPL. I was going through the Q3 report for ALA and there were a couple of points that concerned me. First is that the Company has a working capital deficiency in the third quarter of $287 million for a quick ratio of 0.67. They also didn't generate enough funds from operations to cover their dividend payments and capex for the quarter. Debt to total capitalization is reasonable at 45%, but some other metrics are less rosy. I realize that some of the cash flow shortfall can be offset by the DRIP. Are you concerned by these metrics? IPL also had a small working capital deficiency in Q2 2016, but not a cash flow shortfall. Is it expected in these high leveraged businesses?

Thanks,
Jason

Q: HI Peter,
I have small positions in the three companies: ECI, ALA, and ACQ. I would like to reduce my holdings to two. I am looking for income and capital appreciation. I was thinking of selling Enercare and putting the proceeds to Altagas and leaving ACQ the way it is. Please advise. Thank you.

Q: Can I have your thoughts on todays results.
Kind Regards
Stan

Q: How should be value pipeline companies. P/E ratios do not seem accurate given large amounts of depreciation. Should we look at Price to EBITDA or Price to Adjusted EBITDA or should we examine EV to EBITDA?

Thanks,
Jason

Q: If you gave a rating to Altagas ALA what would it be.
Thanks PB

Q: Would you consider KEY a reasonable buy at today's prices to be held for dividend and some minor growth? Is there another company you would prefer for the same objectives of dividend and growth? Would you prefer KEY to ALA in view of the latter's potential current issues?

Q: I was allocated some subscription receipts with IPL's recent deal. I am looking to add another pipeline company with a strong and growing dividend that is fairly value or under valued if you can find one. What would you suggest? Also, do you believe that energy infrastructure should be included in our energy sector exposure or utility exposure or other?

Thanks,
Jason

Q: Without regard to sector,in which order would you rank these as the better dividend paying stock for a long term hold.I am talking 5 years plus

Q: I am a senior who needs dividends. Currently preferred shares are 20% of my taxable account(10% overall). I hold PPL.PR.M and ALA.PR.I. Could you recommend 2-3 other minimum rate resets?
I held and sold my Concordia shares the day before you took them out of the growth portfolio. Your advice has been great and very consistent. I wish 5i was around 50 years ago.

Thanks, Jim

Q: Hi I assist our daughter with her Tisa. She has done very well and the account holds AW/BYD/CGX/CSU. There is cash to invest and am wondering about Altagas or ZCL.. Should I worry about interest rate rise risk with ALA? Does ZCL have growth potential and in particular potential to grow its dividend? Thank you, Bill

Q: Hi Based on Jerry,s ? you said ALA could be at risk I hold a full position in this stock would you dump it based on this concern.
Kind Regards
Stan

Q: Good morning Peter, Ryan, and Team,

Apparently Enron has reared its ugly head once again. This article from the Globe and Mail describes a lawsuit announced by the Alberta government:

http://www.theglobeandmail.com/news/alberta/e-mails-reveal-how-albertas-enron-clause-was-orchestrated/article31303953/

From the article, "The court action names Enmax; TransCanada; and Capital Power. It also names electricity generator Atco Ltd., the Balancing Pool, which is a public body, and its own power regulator as defendants. The court case is slated for November."

Enmax isn't a publicly traded company, but the other two are. (I don't own either). Are there any other companies that may be impacted from the fallout that will occur from this lawsuit? I'm thinking of AQN and FTS as examples.

As always, thanks for your insight.

Q: Peter; The Alberta government just announced they are going to challenge a agreement made by the previous PC government to basically allow power companies out of contracts if they proved to be unprofitable due to actions by the government. It's called the ENRON agreement.. Can you quantify which companies these would be, and the impact, if the challenge is upheld.? Thanks. Rod

Q: Hi Can I have your comments on Q2 results to me they look good your comments are valued.
Kind Regards Stan

Q: Alqonquin, Capial Power, and Altagas have rate reset preferred shares selling at a significant discount with reset dates in 2018. With a 5 year Government rate of .55 to .7 they have issues that will still offer a very attractive rate of return. For a conservative investor would you rate these issuing companies as an acceptable TFSA investment?. How would you rank them?

Thanks Team

Q: I hold TOU, ALA, KEY. Down 18%, 24% and 13% respectively. This is all my direct oil/natural gas exposure which represents 17% of my entire portfolio.
I have 10+ years investment horizon for these stocks. These stocks fluctuate a lot which I don't mind but I dislike being underwater for a prolong period of time.

Should I stick with these names or should I make a switch to other oil companies like VET? If yes what names would you suggest and how should I divide the investment % wise? Which stock(s) to sell and which one to keep? Switch now or later?

The goal of the switch is to position myself for eventual(I believe) oil recovery.

Appreciate your insight.

Q: ALA has been behaving poorly for an extended period of time. The dividend is approaching 7%. Is there value here ? Are there better options for long term investors? Thank-you.

Q: Why is your opinion of the 400 million dollar deal of Altagas to pay bank debt? The dividend look safe to me for a company that more than half of the revenue and cash flow come from the US?

Q: Altagas has dropped in last week. Did this occur because of Fort Mcmurray fire. What is the impact of the fire on Altagas company and its' holdings ? Do I need to be concerned ??

Did the fire affect any other companies (that I should be concerned about ?) (I think Great west life took a hit too ???)

thanks

Ernie

Q: May I have your opinion on Altagas for income and growth potential??
GUY R.