Altagas Ltd

The effect of the U.S. exchange rate? One of his biggest holdings. Currencies are in a race to the bottom in this era. He expects the CAD to decline vs. USD, so ALA will benefit. ALA is his largest position. The ALA stock price didn't deserve to be cut more than in half during the lockdown because 70% of their business are regulated American utilities. ALA projects 10% growth in the next 5 years on their WGL business, a regulated utility, and has reduced debt. He expects the dividend to rise in 2021. Their midstream business in BC is doing great; their propane terminal is exporting record amounts. CNQ buying Painted Pony is a plus, because PP was a big customer of ALA's. Many things are going well for ALA. They pays a 5% yield. Low risk and good reward.

Fortis vs. Altagas ALA is riskier, but it's starting to come into the cycle so, it's doing a lot better. Fortis is a steady-eddy withe nice free cash flow growth and trading at an okay 17.4x valuation, in line with AQN. They hold a lot of renewables, so it will do fine if Biden is U.S. president. It has US exposure. he likes them. He prefers Fortis. Some money has flowed out of here, so it's not trading at the top. With interest rates being a lot lower than before, all these names can trend up 10% in the future.

There is a possibility the price will recover within five years. It is higher risk/reward to PPL-T, however. It needs more improvement in earnings quality for him to jump in.

PPL & ALA? PPL at $18.50 is his target buy price. ALA might be a good buy if we take out the lows of March.

A hold at current prices. Purchase of Washington Electric is working out pretty well. A more defensive company now. There are better names out there. He owns ENB and TRP. (Analysts’ price target is $23.14)