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2/11/20 Conrad's Utility Investor Live Chat
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AvatarRoger Conrad
9:41
That's the dividend as a percentage of free cash flow, not earnings. And it's after all capital spending, so what's left is for debt reduction, stock buybacks etc. Bottom line it's not indicating the level of risk as it would first appear. And keep in mind that CAPEX is net of everything BCE is spending on 5G as well as connecting people to fiber broadband.
Alex M.
9:45
This is more of an Energy and Income Advisor question, but what are your thoughts on BPMP?  Thanks.
AvatarRoger Conrad
9:45
We rate it buy up to 12 on the strength of assets and low price. But frankly we're a little wary of it, because we have no way of knowing what the general partner BP's long-term plans are for the company. They haven't supported with drop downs or dividend growth. Will they try to buy it in on the cheap? I think if they did they might offer a small premium. But there's also a risk they would low-ball and they're clearly not enamored with this business model, or fossil fuels businesses it seems given the current corporate direction.

Bottom line: We prefer the midstreams in the Energy and Income Advisor Portfolio and High Yield Energy List by a wide margin. For more discussion, join us on the 25th.
HJ& HANS
9:46
I was not able to attend the whole session but sometime ago had several questions for which I have not seen an answer.
AvatarRoger Conrad
9:46
Sorry Hans. We got quite a volume of questions today so it's taken me a while to answer everyone. But I did answer yours as you'll see in the transcript.
Charlie
9:48
Thank as always, Roger, for sharing your valuable time (you seem to be tireless!) and expertise. Any comments on OGE as an income stock?
AvatarRoger Conrad
9:48
Hi Charlie. I did comment a bit on it earlier in the chat responding to a question about why we don't have it in the Portfolio. I do think it's a good income stock and that it would move to higher valuation if it can sell its piece of Enable Midstream. We should have an update on that whole situation in the EIA webchat on the Feb 25, as well as in the March issue of CUI and possibly before in an Alert if there are developments with the Enable sale to report.
RBB
9:50 
With AY currently priced at $41 (with recommended buy below $33), how much could AY reasonably continue to
grow in value (say in next 3 years) . . . and,thinking in terms of maintaining a LT position in AY until a 
better alternative bcomes available (that you like). . . . Best to you, Elliott and Sherry.
AvatarRoger Conrad
9:50
Thank you for those well wishes. I did post a pretty extensive answer on Atlantica a little earlier in the chat. Basically, I see it not cheap enough to buy and not expensive enough to sell. Better renewable energy alternative would be the offshore wind stocks highlighted in the February issue--Avangrid et al.
HANS
9:51
What happened yesterday to PAGP a 7 % drop
AvatarRoger Conrad
9:51
Hi Hans, I did answer your question a bit earlier in the chat. Bottom line is it doesn't change our advice for aggressive investors who don't own it to buy at 10 or lower--nothing in the numbers to merit a change.
Jimmy
9:53
Roger:  CMS-B trades at about 110, its call price. CTA-B (Dupont) trades near 108, $12 below its call price.  Both have the same coupon rate.  Would it seem wise to switch out of CMS-B for the Dupont issue?  I have no idea if Dupont would ever call its issue.
AvatarRoger Conrad
9:53
Really seems like apples and oranges here to compare CMS Energy and Dupont. I think if they haven't called the CMS B preferred yet, there's no point in doing their work for them. CMS is still a great company that continues to get stronger financially in my view. No reason to cash out before one has to--especially since the worst you'll get is the call price.
DM
9:55
Valero has come back nicely in the last week.  What is your current recommendation and buy limit?
AvatarRoger Conrad
9:55
Glad you hung in there. That's actually a better question for Elliott at our EIA chat on Feb 25. But I can say this is a high quality stock and our favorite of all the refiners and we rate it a buy up to 75.
DM
9:56
Valero has had a nice run this last week.  What is your current recommendation and buy up to price?
AvatarRoger Conrad
9:56
Hopefully my answer to your previous question will suffice. If not, please let us know at service@capitalisttimes.com or better yet let's have the full discussion at the chat on the 25th.
dudleycurtis@hotmail.com
9:57
Hi again Roger. What's your single best inflation investment advise. Thanks again, Elmer
AvatarRoger Conrad
9:57
Don't chase bonds at this level of interest rates and buy high quality stocks that can grow their dividends!
AvatarRoger Conrad
9:58
OK! That's probably a new record for me at we are now at 9 hours plus the time needed to answer the emailed questions. I sincerely hope everyone got as much out of this chat as I did. Thanks everyone for your questions, comments and suggestions. It really helps me to do my job better.
9:59
If for some reason you feel I didn't answer your question fully, please feel free to write me at service@capitalisttimes.com And those of you who are Energy and Income Advisor members, please join us at the chat on the 25th.
10:01
If you're not an EIA member and are interested in joining us, please give Sherry a call at 1-877-302-0749 anytime between 9-5 ET, Monday  through Friday.
Thanks so much for joining me today and for being member of Conrad's Utility Investor. Until next time---here's to your health and wealth!
Tom Lewis
10:01
Thank you!
AvatarRoger Conrad
10:01
Thank you!
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