Tim Nash Brookfield Renewable Energy BEP.UN-T BUY Nov 05, 2019

Good, stable company. Interest rate backdrop made 2022-23 particularly difficult for renewables. Will benefit from lower rates. Increasing demand for energy, whatever kind, is a really nice tailwind. Likes partnerships with CCO and MSFT.

We are comfortable starting a position now. The stock was initially up big to start May following earnings and the Microsoft partnership. It has since pulled back, but we think there are long-term trends that make renewables attractive, and BEP.UN specifically has a large portfolio of assets to capitalize here. Rates starting to come down will also be key for the stock due to how much debt it has.
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BEP.UN reported funds from operations of 51c, growing by 9% from the year prior, but just missing estimates of 52c. Revenue came in at $1.48B, increasing 22.9% year-over-year, but falling just shy of estimates of $1.49B.  The company deployed or committed $8.6B of capital ($970 million net to Brookfield Renewable) across multiple investments globally. BEP.UN secured contracts to deliver an incremental 2,700-gigawatt hours per year of generation, of which ~90% of development was with corporate customers. Distribution was unchanged. Not a bad quarter from BEP.UN as FFO and revenue saw decent growth, despite coming up just short of estimates. We like to see the increased demand from corporate customers and think this can be a growth catalyst in the future. 
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Strong play in the space regarding its balance sheet and positioning. Volatile this year, but usually comes out ahead. Dividend relatively safe. Outlook for renewables continues to improve, especially as we get into rate cuts.

Likes the Westinghouse acquisition. Its hydro assets are long life with low operating costs. Likes MSFT deal. Tech companies are building data centres, and the #1 thing they need is consistent and stable power. Her bet is not centred on AI, it's focused on data. Population growth plays into need for power as well. Yield is 5.7%.

He owns BN instead. The key to data centres is that they all need power, and this is one of the biggest wind/solar producers. This partnership will be one of the strongest parts of private equity in the next decade, and is right in BEP.UN's sweet spot.

A very hot sector right now. Tech companies building data centres are entering long-term contracts for power. This technology is still relatively new; nothing online yet in NA, only 1 in China and 1 in Russia. At least 5-10 years before production comes on.

BEP.UN has Westinghouse, which services the nuclear industry. That's her exposure. Stocks have had such a huge run, a lot of expectations are built in, so this is not the time to chase. 

Not easy in the space to find a company that will benefit long term from green trends. This is probably the best way to play. Owns tremendous assets. He owns the parent BN.

Hard to find a company with the same inventory of renewable energy projects. Global, one of the picks to get exposure outside Canada. Dividend looks safe. Fairly stable, solid fundamentals. Will get beaten up in tax-loss season.

Brookfield is a very good manger and BEP contracts are with Microsoft. BEP is not only wind and solar power, but also hydro. They grow their dividend 5% per year. He is averaging down.