Boralex Inc. (BLX.TO)

Thinks the weakness on this has been the French elections. They have a lot of wind farms in France, and the talk is that, depending on who gets elected, they could be done with the wind farms or any new wind farms. Thinks it is a safe dividend, and they are continuing to grow with new projects.

Valuation is not expensive. They have a plan to grow the company dramatically over the next few years. There are a number of catalysts that are upcoming for the company, from dividend increases to other acquisition opportunities. They are growing their capacity and tend to have longer-term contracts. Feels this will be a very different company 3 years from now, but in a positive way.

Sold his holdings fairly recently. This has just been added to the TSX Composite, so there will be quite a bit of index investors buying the stock over the coming weeks. 19.9% of the company is owned by Cascades (CAS-T), and he gets the impression that we are in a target range where Cascades might actually sell that block, or at least a portion of it, so you may get an opportunity to buy this a little bit lower.

(A Top Pick Feb 8/16. Up 38.9%.) Wind and renewable energy. Continues to rank well in his overall dividend model. Yield of 3% and payout ratio of 23%. The purpose of owning this is to benefit from the rising earnings, up 36% in November, and expected to be up 75% when they report in March. Year-over-year earnings growth is expected to go from $.21 in 2016, to $.48 in 2017, giving a 42X PE multiple. Free cash flow is minus 7%. Enterprise value to EBITDA is at 13X. Still feels there are great opportunities for growth.

(A Top Pick Nov11/16. Up 9.47%.) (BNN showed June 27/16! – Bill.) This has been a long term holding, and he will continue to hold it. Did a very successful equity financing last quarter to buy out a partner in a wind project in Ontario. They’ve completed that and it is very accretive to the company. As a result, they boosted their dividend.

One of his top positions, but it pulled back in the ‘Trump-tantrum’. This one also announced several huge deals recently as well as a new financing. They made huge acquisitions in France and Scotland as well as a huge wind farm in Niagara. Dividend 3.25% (Analysts’ Target: $22.44)

Their operations in the US are limited. They have a number of projects in Europe. He expects them to bounce back after a difficult quarter due to weather. There are revenue streams to bring online in the next couple of years.

Very good, high quality business. Renewable power. This is where you want to be invested in the renewable space. However, the stocks may have a bit of trouble over the next several months. Consider putting Puts on to protect your downside.

(A Top Pick June 27/16. Up 0.95%.) An independent power producer. Recently reported and earnings were mildly disappointing. Dependent on Hydro and wind turbines, so it does get impacted quarter by quarter because of weather. There is nothing to be concerned about on this. Still a Buy.

(A Top Pick July 28/15. Up 48.84%.) He was playing defence on these 3 stocks picks, just looking for a way not to get creamed. This has now become a hot stock, so he is no longer in it. Dividend yield of about 3%.

He loves the renewable space. As long as the sun shines and the water flows and the wind keeps blowing, these companies can generate cash flow. Cheap financing is allowing them to make a good margin.

An independent power producer based in Québec. Have increased their capacity significantly over the last number of years and are continuing to grow. They have some very aggressive targets for capacity and cash flow. Going from reinvesting all their capital into growth projects, to returning some of it to investors through a dividend, and there is lots of room for that dividend to grow. They have a number of projects that they still want to develop. Trading at a significant discount to their peer group. Dividend yield of 2.99%.

(A Top Pick July 28/15. Up 25.83%.) These picks were based on survivability, not a growth. Sold his holdings.

(Market Call Minute.) An alternative energy generator. A good solid long-term business. This would be a Buy if it were down 20%.

(A Top Pick March 4/15. Up 25.79%.) One of those companies that is methodical about building out wind. It is basically wind in Québec and France and are executing incredibly well. He switched to something else a few months ago, but it is a great company.