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Energy & Income Advisor Live Chat March 2019
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AvatarElliott Gue
6:18
I think that's a good question. Generally speaking I like to follow the old saw "take care of your losers because the winners will take care of themselves." One reason we have started tracking our picks in the Active Portfolio rather than simply offering a list of "model portfolios" is that it forces us to make the hard choices -- if we want to add something new, we have to bail on something else to free up cash. So, hopefully this will help address that issue over time. Typically, though, when I am looking to make some sales I will start by looking at the names that have moved the most against me.
AvatarRoger Conrad
6:20
I would also point out that we did make a large number of sell recommendations at the end of last year, in part for the purpose of repositioning and focusing on our preferred names.
MartyR
6:21
are you guys coming to a west coast money show?
AvatarElliott Gue
6:21
We haven't done the Money Shows the past couple of years, mainly because of the time issue. Also, we've felt that it was more useful to attend industry conferences to help idea generation. That said, we have talked on and off about setting up our own conference, open only to our subscribers...so that's something we may explore if there's interest from our readers.
Lyndon
6:25
You talked about another yieldco earlier. What are your thoughts on AY ?
AvatarRoger Conrad
6:25
I think it offers a great deal of value both for current yield and reliable distribution growth. The assets are high quality and debt is manageable, being on the project level. I also believe they have a supportive sponsor in Algonquin Power & Utilities. There is an ongoing strategic review by management, but from the tenor of comments the goal is to reduce cost of capital and maintaining dividends is viewed by management is key to doing that. I think it's cheap in the low 20s.
Pablo
6:26
Please ignore if this question was sent twice.  I wondered what the status of the IDRs were for CEQP and BEP and if they were in or near to the high splits.
AvatarElliott Gue
6:26
CEQP doesn't have any IDRs....they eliminated them a few years ago. That company has really turned things around over the past few years and they did something I really like.
6:27
...which is to take the necessary pain of a distro cut early instead of dragging it along for ages trying to maintain an unsustainable payout.
Pablo
6:27
what is the status of IDRs for CEQP and BEP?  Are they in or near to the high splits?
AvatarRoger Conrad
6:27
CEQP has no IDRs, as it is the product of a previous merger of the general partner and limited partner. Brookfield is a former income trust and the parent's primary hold is an equity interest. In both cases, IDR splits are not an issue.
AvatarElliott Gue
6:29
I think that covers all the questions this month. I hope everyone has a great evening...Look forward to hosting another chat towards the end of April.
AvatarRoger Conrad
6:30
Well that's all we have in the queue as well as from emails sent earlier. Thanks as always to everyone for participating. As a reminder we'll be sending you a link to a transcript of all questions and answers shortly. We look forward to talking to you next month. In the meantime, if you have other questions, send them to us at service@capitalisttimes.com.
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