Innergex Renewable Energy

It has been on fire this year (up 30%). Hydro Quebec is buying 10% of the stock. He would stay on the sidelines since it has rallied just based on a strategic alliance with Hydro Quebec.

Great play, 100% renewable energy. Likes it. Ability to grow as well as generate a nice yield. Few places to get this nice of a dividend without taking on carbon risk. Bit more of a growth play. Yield of 5%.

He would move on. It is a small short for him. It has high valuation and a declining share price. All the renewables and utilities had a big move up for the summer and now they are expected to do poorly. They have hefty debt also. People own it because of yield.

He would not be buying this here because he would be a little worried about buying a high yielding utility that is going to have very moderate dividend growth going into a rising rate environment. If you are an income oriented investor, this is a phenomenal company with a great asset. Some of the largest and most dedicated Hydro assets in Canada. Great management team. It should have some of the highest cash flow growth in the next 3 years.

Great management team. Great assets. Long duration. 2017/18 projects will come on line and generate more cash flow. It is probably fairly valued here. He would buy at a lower level.

(Top Pick Jun 26/13, Up 31.00%) They have a lot of hydro projects under development. Very stable but not exciting. Buy on weakness.

(Top Pick Jun 26/13, Up 2.00%) More like a bond with growth, renewable energy with long term contracts. Picked it for the safety and dividend yield.

Has been caught up in this general inter-sensitive correction we been through over the last 6 months. Feels that this is in the course of bottoming. Good assets. Valuation is quite compelling. 6.6% dividend yield.

In general he likes the renewable space. When Ben Bernanke started talking about removing stimulus, the markets reacted and forced up the 10 year and you saw these renewables, and to a lesser degree the utilities and even some of the pipelines, react very negatively. This company was re-rated and the price came way down and it has fairly good growth. This is an area he is looking to reinvest in.

Likes the space. Has been beaten up because of the yield trade last week. Mostly hydro properties in Quebec and BC. Can double production capacity over the next 3-5 years. Already pay a high dividend but he sees them increasing it as soon as next year. Long term power agreements and insured against business interruptions.

This has a pretty rough looking chart and is probably not a good entry point yet. We want to see a base formation. Chart shows stock is in a downtrend. Every time it touched old support levels, it would bounce off and then suddenly break down through. He would want to see it go sideways for a while.

DBS downgraded the corporate debt and this gives you an ideal buying opportunity. Pretty good yield of 5.8%. You are basically buying into a power producer that is mainly run on river or hydro power. Has 20+ year PPA and have contracts for this. There are no fuel risks. Very defensive.

Really likes this but doesn’t own it because it is very illiquid and tough for him to buy. Good dividend. Likes their renewable focus. Average length of their PPA (power purchase agreements) is well over 20 years. Rock solid business model.