You are viewing the chat in desktop mode. Click here to switch to mobile view.
X
Return toCapitalist Times
7/31/24 Capitalist Times Live Chat
powered byJotCast
Prev Page View Full Chat
Hans
4:50
Roger. What is your outlook for NPIFF.  Thanks
AvatarRoger Conrad
4:50
I think Northern Power Inc is likely to report solid results and guidance on August 14--as well as solid progress on the major offshore wind projects that are set to be the key drivers of its growth the next few years, one in Poland the other in Taiwan. I continue to rate it a buy at USD20 or lower for those that don't already own it and want some offshore wind growth exposure. The company has successfully operating facilities in the North Sea and no US offshore wind exposure--a plus in a year of extreme energy politics.
Hans
4:52
Roger,  Class Action Lawsuit for CVS, will this bring the stock further down.  Thanks
AvatarRoger Conrad
4:52
CVS reports earnings on August 7, at which time we'll be able to get a good read on progress boosting profitability of Medicare related operations. I don't think the shareholder suits will have much impact on the share price, though predictably there are quite a few in response to the stock's weak performance this year.
Bob S
4:57
I purchased the lifetime subscription to the REIT Sheet and have already found it both helpful and profitable.  Could you please comment on ARE and WPC earnings? Thanks.
AvatarRoger Conrad
4:57
Thank you very much for those kind words. And if anyone else is interested in the REIT Sheet, I invite you to call Sherry at 1-877-302-0749 Monday through Friday, 9-5 ET.

The next update will have full analysis on all of the Recommended REIT list. But in brief, Alexandria REIT affirmed its 2024 guidance, backing last month's dividend increase. The shares are still discounted because of fears about "oversupply" in some markets but results are still very much on track. And that should ensure eventual share price recovery.

I commented on WP Carey's results in an earlier question. Bottom line is 2024 is as management described a "transition year" and recovery still appears to be very much on track. I still like both REITs for long-term, income focused investors.
Victor
5:00
Hello Roger, ENB has been recovering from the lows of April. However, it's now looking a little overbought. What is your take on this one? Would you keep it long term? Thanks.
AvatarRoger Conrad
5:00
Hi Victor. Midstream stocks this year have been adding to their gains of the past few years. And several of them have risen above my highest recommended entry points. That said, I still view Enbridge as fairly cheap for such a large, dominant company with a growing yield still over 7%. It's also put a great deal of infrastructure in place to take advantage of rising US energy exports, which figures to pay off immensely the next several years. I like it long-term, as I do our midstream picks in the model portfolio.
Victor
5:04
Hello Roger, Is NEP dead money? It continues to disappoint. How do you feel about it? Thanks.
AvatarRoger Conrad
5:04
I don't think NextEra Energy Partners' share price is going to do much until it's able to resume drop downs from parent NextEra Energy. And that in turn depends on capital markets--with interest rates probably the main variable.

That said, if NEP does regain access to capital markets and is able to start refinancing CEPFs maturing in 2027 or later, I think its share price is going to take off pretty quickly. At the current price, it yields almost 14%--reflecting expectations of a 50% cut at least. And if that's off the table, the stock is likely to double rather quickly, especially with elevated short interest (5% of float) to squeeze.
Alex M.
5:09
Hi Roger.  BEP seems to have been left out of the recent utility rally.  Even CWEN has seen a bit of a boost lately.  What do you think is feeding the negative sentiment for BEP?  Thanks.
AvatarRoger Conrad
5:09
I think Brookfield is associated with renewable energy in the minds of investors--and right now a lot of people don't want exposure for fear of what a second Trump administration would bring.

That said, I expect management to release solid Q2 results and guidance on August 2--including detail on data center contracts that should produce substantial cash flow gains. And I think eventually, that will earn BEP a higher valuation. Also, as I've indicated, I think investors are far too focused on politics regards energy stocks--this is a world where we literally need all of the above when it comes to sources. And Brookfield is a major player in multiple resources, including nuclear.
Alex M.
5:15
Hi Roger.  I was hoping you could comment on the massive moves in LUMN lately.  Thanks.
AvatarRoger Conrad
5:15
Lumen's recent upside has to do I think with three things: (1)A squeeze of what was extreme short interest, (2)Excitement over recent statements from management indicating the company has an angle on artificial intelligence (it does have valuable fiber assets and a collaboration deal with Microsoft) and (3)Speculation a deal may be near on refinancing debt.

That said, the company's bonds due April 2025 still yield more than 12% to maturity, a distressed level. And earnings due out August 6 are certain to highlight declining revenue as competition eats away business across the board.

Bottom line: I would expect a lot of volatility in this stock. And after the recent move up, it looks more than ever like a sell.
Mary K
5:18
Hi Roger,  What is your latest opinion on CHK and SWX transaction?  Are you planning to keep CHK?  Thanks
AvatarRoger Conrad
5:18
Hi Mary. Chesapeake Energy announced earnings for Q1 and updated guidance earlier this week. Management still expects to close the Southwestern deal this year. The key hurdle is still the Federal Trade Commission anti-trust review. And there's really nothing new to report at this time. We're still hopeful for a successful close and in any case we view CHK as a solid value and bet on recovery in natural gas prices.
Guest
5:20
Roger, do you think WES is still a buy here after a nice run this year? Thank you.
AvatarRoger Conrad
5:20
We currently rate Western Midstream as a buy at 35 or less, which is somewhat below the current price. Management will announce Q2 results on August 7. And we would expect solid volumes and cash flow supportive of the dividend. That said, however, it's basically a hold at this price.
AvatarRoger Conrad
5:22
Well that looks like all we have for today. Thanks again everyone for joining us. You've given us a lot to think about and I hope our answers have helped you with your investment decisions.
As always, we will be sending you a link to a transcript of the complete Q&A tomorrow morning. And the transcript will also be posted on the CUI and EIA websites.
5:23
If for some reason your question was not fully answered, please drop us a line at service@capitalisttimes.com and we will get back to you as soon as we can.
Have a great evening. We'll look forward to chatting with you again next month!
Connecting…