Portfolio Manager at Guardian Capital
Member since: Jan '05 · 664 Opinions
Renewable power development. They are in the middle of extensive growth projects. Pressure is caused by an off shore wind project. As they continue to de-risk projects the stock should go up. It will perform well over time. 6.6% sustainable dividend. By 2017 you will see the payout ratio under 100% and then you should see dividend increases.
She quite likes it. It lagged its peer group. Some exposure to the Alberta power market. They have a very stable base of earnings. There are a number of potential projects coming on. There are also smaller scale LNG opportunities. It is a good name and something to look at here. It is an attractive entry point. It has not rebounded as much as the peer group.
They announced they were dropping down assets into the income fund. It has been known in the market. The form of the deal announced recently was different than expected. She thinks it is attractive. Stay here if you are looking for income but if you can stand more growth, and less income, then move to the parent company.
(Top Pick May 23/14, Up 22.75%) It is in the initial stages of finding a new trading range. Their investor day was very beneficial to the stock. Higher rates would benefit this company. You will have stronger core earnings growth than from the banks. 10-12% growth beyond 2016. She also likes their Asian platform.
Retail oriented REIT. Wal-Mart is 27% of their revenues. It is harder to get rental rate increases. They acquired 24 properties from Smart Centers. It does enhance the long term growth profile. It’s a bigger and better REIT. Below 90% payout ratio. It is about 2% below NAV. She would be patient and acquire it when it is lower.
Markets. There is a lot of macro uncertainty. Greece, China, the Middle East, energy markets and the Russian situation. We aren’t seeing a lot of earnings or revenue momentum. The likelihood is that we would see some sort of a correction in the US. She expects the Fed to move up the interest rates in the US in September. Interest rates will be lower for longer, however. The US economy is not strong enough to stand much of an interest rate hike. There are some good opportunities with interest sensitive sectors selling off. Wait for a rate hike before stepping in aggressively.