RE:RE:RE:RE:RE:RE:RE:Really Don't Get It I'm very interested in your views on a few of these companies and my thoughts on these plays, I dunno if I'm out to lunch sometimes on my viewpoints/understandings. Sorry other readers, we discussed the useful info on MKP, we are working on other things now, but you can drop in on it. lol
MAL board here is pretty useless from what a I've gone through, I seen this a a very exciting areospace tech company that pays a decent dividend that grew sizably regularly before the pandemic, and as a current post Covid rebound play in the neighborhood of 30-50% upside on shareprice. I've read in other places they still have stable contracts and a large backlong similar to Boeing has for the actual construction of aircrafts (also don't they have a contract with Airbus or Boeing for systems along with the Canadian government defence contract?) and have signed a couple more during this shutdown but they have been put on a massive slowdown. What am I missing on this thesis and info, as there seems to be hate for the CEO, but they are either adored or ready to be drawn and quartered by the posters on these boards, there is no real inbetween. I wanna get in a bit of tech and I seen this as a great Canadian start.
LUX I'm in at a little over .25 I jumped in 2 purchases right before the run up, I should have sold as I didn't think it deserved to go past .30 at the time, but long term when they get into production it seems this is gonna be a massive cash cow. I love the story about they are disappointing me on execution, they are about 4-5 months behind the original plan and 3 months behind on the secondary plan and now they say the situation is liquid and could be in service at any time. I bought it for the tech as I feel it has big upside in the industry beyond where the plan is now and the production plan to cost seems amazing. I've got this in my TFSA so I'm riding this pony either up the mountain or into the ground.
I never heard of GWA, but it seems to have acted similar to my SMC in the gold space, I bought SMC as a penny stock short term play as it was bouncing around predictablely and I wasn't paying attention for a couple months when it drove downward and then I've been chasing the dragon hoping it will recover, it had a minor spike, but it's really a small portfolio position, it was money I'm fine losing.
So rising rates and how it will affect BDCs depends on how they are lending and the makeup of the companies, generally the ones that I own have mostly have floating rate loans, rates go up so do the loans, just like your personal line of credit. The ones that aren't as heavy in floating rate has some system in place that the first 1% will hurt them mildly, but after the 100 basis points something kicks in and they actually benefit from the rising rates as it raises lending risk profile and they can tack on some safety profit margins as well as the rising rate. I dont fully understand it or can explain it well, but apperently the rising rates are better for them as most of thier borrowing tools are fixed agreements, new shares sold and corporate bonds. I'm not scared of the rising rates from what I read, Utilities/highly leveraged companies and growth stocks sound like they have the risks.
GICs were taught to me to be the greatest things in the world so in my early 20s that's what I used my TFSA for, and then 9 years ago realized that was old school thinking because at one time the rates were 10-12% and when I was a kid learning about them they were posted at 5-6%, yet I was only getting 2.7 and 2.3% and 2.1% when I got in. I started in a taxable account as I had my TSFA maxed out and tied up in these GICs, so as they matured I started buying stocks, MKP and VSN where my first purchases when the first one came up, MKP doing a rights offering and BCE was my second move on a maturity then RUS and ALA on my final one.
I agree with that idea on the bluechips, I just won't invest in tabacco/weed, insurance and retail banks on principle. My other hates are just from customer services from using the telecoms and Brookfield and a few others seem shady as $hit even tho they are great capital allocators and generators, my hate won't stop me from investing, but it needs to be a really good reason at the time if I'm going to cough up to them.
My reason ATCO is ahead of CPX is because I believe ATCO is the parent in some way to CPX I believe, altho CPX is a better deal the idea would be like BAM instead of a sub entity. Also ATCO and AQN I feel have more recovery upside than CPX has and I can use them in a short term total return play and then exchange if I like with the one I want to move forward with. AQN also has the steady 10% div growth, ATCO was doing mid-teens before Covid slowed them to low singles and CPX is the lowest at 5-6% year over year. Fortis just seems to have lost momentum with growth only being 2-3% year over year and I don't see them having anything to push them forward, they are steady Eddie for safety, but it's somewhat dead money. I found and owned this KWH a few years ago, it was like JE on steroids and for comercial/industrial power contracts, very lightly known, I think I was getting a 14-16% yeild and it got taken out by a private company, I made 60% total return on a significant holding in like 3-4 months.
I still keep CHE on my watch list, but I don't think I would ever jump back in, that said I do like thier bonds, they are constantly on the edge of junk and they have a great risk reward profile at times as I don't see them every defaulting, but I've never bought a bond before. But when I get older that's likely a sector I'll look into for preservation and decent yeilds.
My only real attempt at a REIT was CUF(UCK itself) which was a massive mistake, I actually bought it in a similar time as CHE and the path was very similar, but they were good investing lessons. NWH has always been interesting to me, as is TNT, DR, ERE, GRT and recently learned a bit about NET, but I've been somewhat scorned by CUF.
I need health care exposure, thus my interest in DR, SIA has come up a few times, I have WBE which supplies consumables to healthcare, and HTL is also a health sector play of interest, I forget if they clean or make instruments.
Telcos: I should bought Telus, but I like the colour blue and I got in at good enough prices for BCE, Telus I had the least hate for as they have been my cell provider for coming up on 17 years, but lately them trying to sell the new health system and other products has pushed me to the edge of a cliff, I flipped out on thier cold caller a couple weeks ago saying all the nasty $hit I could think of for waking me up at 7AM on a Saturday to give me an offer I had rejected several times in the past few months while telling them please not to give me anymore offers. I get anouther call, Telus may no longer exist in this world and there will be a population decrease. Take my money, and as long as my service is working, they can pi$$ off. Rogers is the worst customer service I've ever had, I wish terrible things to everyone associated with them even my friends.
I'd keep and will be keeping PPL, they are well undervalued and have a bunch going on, I don't understand today's deal as I don't know how we go in with a smaller share and come out with a larger share and a huge lump sum payment. The dividend increase was ok, they could have done more and I expect more in the late summer to fall. ENB has issues that I don't fully understand, like not covering the dividend in anyway that makes any sense. I've been interested in them before and apparently they have a big play coming up in power generation a couple years when the US shuts down it's final few coal fire plants. Keyera is always hanging around, someone is gonna eat them and I think it be PPL. TC has hit my radar too, I worked on one of thier plants recently and did some research, I regret not buying below 60 during the December pullback.
I only take info from major analysts as they usually have the most access to info from the companies ones hired by major firms usually seem to be terrible at setting targets and expectations while seemingly having agendas. I prefer the low end ones that can explain thier rationale extreamly well and simply. I also like Seeking Alpha for several of thier contributers in different sectors. Motley Fool was good years ago, but they started to become more entertainment based on thier info I seen. Both aren't great at analyzing Canadian companies unless they are duel listed or have a Canadian contributor that covers them. I do like this place for retail investors to discuss experiences and thoughts on what they see. Some people have real solid info at times.
The companies I listed are only of current high interest, most I haven't done that deep of dives on I may end up buying a couple of them when I feel confident myself in them. I've played fairly safe for years and have strong portfolio pillars, I'm looking for some interesting stuff now to have fun.