Innergex Renewable Energy (INE-T)

Produces green power. Likes it. Trades at much higher multiples than Polaris. Would chose Polaris in the sector, but INE is a solid player in the sector.

INE vs. RNW RNW depends on drop-down from the parent for growth. Whereas INE is an independent power producer. At current valuations, he prefers RNW. Pretty good visibility over the next few years. INE is more expensive and has good prospects, but its valuation doesn't have as much upside.

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.