BUY
TRP vs. BNS

Two completely different sectors. First questions are what's already in your portfolio and at what weighting? Similar dividend yields and similarly disappointing to investors in 2022. BNS has had poor performance for quite some time, and now a leadership change. TRP has a good, strong management team, but cost overruns. At these levels, he prefers TRP -- underlying business doing quite well, core fundamentals extremely strong, project issues will get solved though investors may have to wait a bit. Opportunity for total return is pretty great over next 10 years.

COMMENT
Long-term portfolio construction.

When considering what to add to your stable of stocks, first questions are what's already in your portfolio and at what weighting? For portfolio stability, it's really important to be diversified so that different parts of your portfolio perform well at different times. What he's looking for is stability in returns and, therefore, stability in the underlying dividend. A lesson from his mentor: "If the assets are good, management is temporary." This reflects longer-term thinking than the market, which tends to focus on the most recent quarter. Either management will run them better, or a new team will come in and run them better. 

BUY

Continues to pursue Kentucky Power, which is the right move because utilities don't come up for sale very often. They can take that utility and repurpose it. When a utility comes off so badly, you have to look at it as a buying opportunity. Renewable part struggling, and management needs to do better on this. He doesn't have confidence in management. If the assets are good, management is temporary.

PAST TOP PICK
(A Top Pick Jan 26/22, Down 3%)

Uninspiring year. Did get Westinghouse, a transformative and nuclear acquisition. Excited about the nuclear space. Buying at current levels.

PAST TOP PICK
(A Top Pick Jan 26/22, Down 30%)

Cost overruns on projects entered into a decade ago, a much different economic environment. Nuclear expertise. Would benefit from increased mining development. At steal at these levels. Nice total return for 5-10 years. Yield is 7%, shouldn't have to cut.

PAST TOP PICK
(A Top Pick Jan 26/22, Up 33%)

Dividend plus share price appreciation. Safer, more conservative way to get into oil & gas. Will continue to do well. Yield still over 6%. 

DON'T BUY
Which Brookfield to own?

Yield is around 1.5%, the lowest in the group. You have to evaluate each company separately. He owns BEP.UN and BIP.UN, as he finds those the most attractive long term. With those two, you tap into the Brookfield global, private equity expertise, with a focus on renewables and infrastructure. BN owns a lot of real estate. BAM is asset management. A complicated structure. You have to analyze the risk/reward to see what's right for you. He's not willing to take that much risk for the top of the house at such a low dividend. One thing is there's been more of a shift in office properties and vacancies post-Covid. Absent a significant change in interest rates or lessening of geopolitical issues, we're heading into a weakening economy. If you have a more positive view on real estate than he does, you may want to look at BN.

HOLD
Which Brookfield to own?

You have to evaluate each company separately. He owns BEP.UN and BIP.UN, as he finds those the most attractive long term. With those two, you tap into the Brookfield global, private equity expertise, with a focus on renewables and infrastructure. You have to analyze the risk/reward and see what's right for you. 

HOLD
Which Brookfield to own?

You have to evaluate each company separately. He owns BEP.UN and BIP.UN, as he finds those the most attractive long term. With those two, you tap into the Brookfield global, private equity expertise, with a focus on renewables and infrastructure. You have to analyze the risk/reward and see what's right for you. 

WEAK BUY
PEY vs. BIR vs. ARX

LNG Canada is bringing a significant export opportunity for all Canadian nat gas companies towards the end of 2025. This will be transformational. He likes all Canadian nat gas producers on a volume basis. His preference is ARX, as it's diversified with undeveloped land. Prefers PEY to BIR; management is stronger, though its dividend will be subject to commodity prices, can grow production long-term. 

DON'T BUY
BIR vs. PEY vs. ARX

LNG Canada is bringing a significant export opportunity for all Canadian nat gas companies towards the end of 2025. This will be transformational. He likes all Canadian nat gas producers on a volume basis. His preference is ARX, as it's diversified with undeveloped land. Prefers PEY to BIR; management is stronger, though its dividend will be subject to commodity prices, can grow production long-term. 

COMMENT
Natural gas.

With the warm winter, nat gas prices have been demolished. Nat gas is a commodity that's very sensitive to weather and has very significant short-term cycles. Winter is becoming the bigger variable on demand, with summer demand becoming more consistent due to cooling demand in the US. LNG Canada is bringing a significant export opportunity for all Canadian nat gas companies towards the end of 2025. This will be transformational. He likes all Canadian nat gas producers on a volume basis. His preference is ARX, as it's diversified with undeveloped land. 

HOLD
Sell, switch to Canadian banks?

Still likes it and new management. Took a long while to restructure US annuity business and reduce risk. Asian business seeing some positivity in sentiment, wait to see if this translates into results. Giant overhang for years. Underlying horsepower still good, dividend strong relative to sector. Opportunity for management to take good assets and transition them to a better day. Well run. Right now, bit worried about the banks' credit risks in a recession, so he likes that insurers diversify away from that. He's 15% banks, 5% insurance. 

HOLD

Core position for him. He maintains around a 4% position. Opportunity for total return over next 10 years of dividend plus capital appreciation is pretty great. 

TOP PICK

Share price off significantly, by about 25%. Huge amount of undeveloped land. They own their own infrastructure. Buy on the dip, especially under $15. Premier nat gas company to own. Upside on LNG Canada export. Yield is 4.03%, growing. 

(Analysts’ price target is $24.43)