Investment Q&A

Q: In your answer to Steve on BEPC vs BIP.UN differential: can you explain why these two should be thought as linked together? I get that BEPC and BEP.UN are linked as they represent the same company.
Would you agree that the growth for BEPC/BEP.UN will be muted this year (servicing debt is going to go up) and financials (US banks) would see better growth potential? Would the growth issue apply to AQN as well (for the same reason)?

Q: Your investment guidance on buying these 3 stocks at this time for growth in 2021. thanks

Q: Peter; It seems to me that there is a general selling of the renewable area, AQN,CPX,BLX etc, . Just profit taking after the huge run up or a back to the past oil switch to the energy sector? Thanks,
Rod

Q: Retired, dividend-income investor who trims and adds around mostly full 4-5% positions. I own AQN, FTS. With the drop, due to Texas among other factors, how much is already baked into their stock positions? I am ready to top up Fortis now that it has dropped to < $50. What does your crystal ball say? Add or wait a little longer? I know it is a timing question. I just didn't want to jump in and catch a falling knife if you thought their might be a bit more downside.

Thanks...Steve

Q: Hi Peter, Ryan, and Team,

Would you attribute Algonquin's 'relative weakness' compared to Brookfield Renewable Partners due to Algonquin's Texas exposure? Is Fortis in a similar situation as Algonquin? Please rank these stocks, with a rationale for your choices. Thanks in advance.

Q: The utility stocks appear to be moving out of favour. Is this a good time to add, or has their softening only just begun. I realize it's a market-timing question, so maybe the question is better framed as: on the whole, are Canadian utility stocks running below or ahead of their average levels, whether based on FCF, PE, or some other more relevant metric?
Thanks very much...

Q: Can I get your thoughts on AQN’s recent release detailing the weather impacts in Texas. How significant is the impact, will we see a significant decline in share price and if so would you see the decline as a buying opportunity. Thanks.

Q: Do you have a preference between these stocks for a long term investment? Would you recommend purchasing an etf instead of a few stocks for exposure to the renewable energy sector?

Q: For a three year hold what company do you prefer and why? Thanks.

Q: I am holding AQN, BEPC, and BLX in utilities and am considering selling AQN to purchase NPI. I’m retired and looking for safe growth with some income. Does this trade seem reasonable for a longer term?

Q: For a long term investment, do you have a preference for Algonquin or Boralex? Do you have other favourites in the renewable energy space?

Q: Own both companies. What are the prospects of both over the next few years. Do you prefer one over the other?
TSteve

Q: I'm interested in the water theme in general. Have contemplated buying CWW but already own AQN (part of CWW) and HEO as water plays. Now that XYL has come down under $100 would you be buyers at this price for a long term hold? Any other water names you like?

Q: Morning TEAM 5i. After reading Ryan's piece, I find myself wondering when the next market pull-back will happen and just how deep it will be. I agree with his thesis that many of these 'bubble stocks' will pay the price of lacking real fundamental value. It reminded me that perhaps I should rebuild, for lack of a better term, the 'Core' part of my portfolio. I'm considering the companies indicated above and wondering if you also would consider them "Core Holdings'. (Core, being companies that are fundamentally sound, pay a bit of a dividend and should survive a sizeable correction in the market). Also, if you think I'm missing any companies I would appreciate it if you would suggest them. As always, I look forward to your much appreciated guidance.

Q: I am looking at putting together a portfolio of set-&-forget Canadian dividend-paying stocks, in what will be my only unregistered account, making up about 30% of our overall portfolio. The registered accounts (70% of portfolio) are now all in mixes of VGRO, VBAL and XAW.
My emphasis is on stable large cap companies, with a sprinkling of smaller cap, low beta, decent and growing dividends. I expect to draw down the capital at 6 - 7% per year (in addition to the dividends). Beyond the drawdown, capital preservation is secondary to the income.
What are your thoughts on the following mix? Additions/deletions?
Communication: BCE, T
Consumer Discretionary: CTC.A, LNF
Consumer Staples: NWC, PBH
Financials: BNS, TD, SLF
Industrials: SIS
Materials: SJ
Real Estate: CRT.UN
Energy & Utilities: ENB, AQN, FTS, ACO.X, BEP.UN (or BEPC)
My other thought is 100% CDZ but I'm not very impressed with the historical returns and the (relatively) high MER.
Thanks. Lotar.

Q: Question 1: Considering buying a few hundred shares of ADTX (NASDAQ). There seems to have been significant growth over the last year and since the company launched (2017), and I like the biotechnology space and don't have any positions here yet. Can anyone provide some insight for a beginner investor on this company? I have a 2-3 year timeline and am looking for growth, okay with some risk. Feel free to suggest some alternatives to ADTX if you have some.

Question 2: I'm interested in adding some clean / renewable energy stocks to my portfolio, specifically US companies but also open to Canadian. I've been watching AQN and BEP.UN, but perhaps I'm missing some interesting ones that will benefit from the US being back in the Paris Agreement (!!). What are your favourites in this space right now?

Question 3: I currently work in A.I., and I like NVDA as a clear leader in this space. Do you think their stock is over-priced currently? It's one of the most expensive stocks in the A.I. technology space and seems too high when compared to MSFT or other players. Can you rank your favourites in the A.I. space?

Thanks 5i Team, and happy new year to everyone!

Q: I am low on utilities as per the portfolio analytics. I currently own the above stocks. my question is would you add equally to these or do you have a preferred stock of the three or perhaps one more to add to the group?

thanks Dave

Q: Hi, purely in terms of relative dividend security could you please rank the above blue chips companies over the next 5-10 years.Thanks.

Q: First of all, thank you for your amazing work. Cannot express how helpful my 5i subscription has been. Life-changing in all honesty.

My positions in LSPD (17.3%) and GSY (12.7%) have gotten a little out of hand. I was fortunate to pick them up near their lows in April. I've already trimmed both a couple of times, but I am really struggling to sell more given the positive outlook 5i has of both for the future. I've seen similar questions asked about trimming and selling positions with phenomenal growth and seen your responses suggesting to trim positions to reasonable weightings. I thought I might have an easier time doing so if you suggested some positions to add to or some new ones viewed as favourably as LSPD and GSY.

I have the following companies in a TFSA and have included the weightings only of positions I think might warrant a second look. While I anticipate a comment about weightings needing to be personal what would YOU suggest as the highest weighting for LSPD and GSY? And, again, please suggest some positions to add to or new ones.

Feel free to take question credits as you see fit.

DOO (2.1%), ATZ (2%), AW.UN, BYD
ATD.B
BMO, BRK-B:US, GSY (12.7%)
WELL (4%), VEEV:US (1.3%)
CAE, DAL:US, AC (1%), XBC (3%)
LSPD (17.3%), KXS (7.6%), DSG (3%), CSU, PHO (1.1%), AMD:US, CRWD:US (2.4%), U:US (2.1%), NVDA:US (0.83%), TTD:US(1.2%)
ROKU:US (1.9%), TTWO:US (1.2%), PINS:US (1.5%)
AQN, BEP.UN
REAL

Thank you again

Q: Hello!

I came across an article about Algonquin as being undervalued based on DCF model. However when screening it with Graham number the stock seems overvalued. The technical analysis seem to support that as well. What are your thoughts on that? With the change in the US administration, I am looking for a a long term exposure in unitalities market in both Canada and US. Any suggestions would be greatly appreciated.