JotCast | July 2023 Capitalist Times Live Chat

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July 2023 Capitalist Times Live Chat

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Roger Conrad

6:25

Hi Janet. I'm not finding an MB. If you mean MO--Altria --I like it a lot for a big yield that's reliably growing. Earnings are August 1. I'm rating it a buy in advance of them at 50 or less.

Guest

6:29

Hi Roger: Wy is NEP getting beat up lately? It is selling for substantially less than your dream price of $60. Thanks. Barry

Roger Conrad

6:29

Hi Barry. I did field a question on NextEra Energy Partners at length earlier in the chat. The short answer is skepticism they can continue to raise dividends 12-15% a year per management guidance. I believe it will continue to, mainly because parent NextEra Energy is in the pink of health and has the will and means to continue supporting NEP as a financing vehicle in the long-term. It's impossible to say when the sentiment will turn more favorably. But so long as NEP continues to meet guidance it will eventually--and we'll see a return to the mid-80s for the stock.

Arthur

6:35

Gentleman,

Thank you, as always, for your investment guidance.

With the current Money Market and T-Bill rates, accumulating cash and sitting out the market has been easy. When will it make sense to focus more aggressively on deploying the cash in longer-term investments? My crystal ball is cloudy. :~}

1)    With the run-up of a select few stocks seemingly dragging the market upwards, are you seeing any bargains at this time?

2)     What are your thoughts and timing predictions for a possible market retreat?

3)    I see that energy & income has a dedicated tab for Dreams prices. Can you add one for conradsutilityinvestor and for the REIT Sheet? I appreciate the Dream Price feature but find them challenging to easily locate.

4)    I subscribe to CUI+ but can’t figure out how to find older reports or search it like one can on your other platforms. Is there a separate landing page for CUI+ that I am missing?

T

Roger Conrad

6:35

HI Arthur, I actually do have a table of Dream Buy prices in Conrad's Utility Investor, which is published in the Portfolio discussion of every issue. It is not currently also posted in the website tables but that's a good suggestion when we do update the site. I also highlight Dream Buy prices in the REIT Sheet when I make recommendations and they are also listed in the Portfolio Recommendations table. Look for the July REIT Sheet on Friday.

At this point, the only way you can search back issues of CUI Plus is on the Capitalist Times website, by clicking on the "Updates" tab and just scrolling down for "Active Income Portfolio Update." The portfolio is under the Portfolios tab.

Neal G.

6:41

I have some nice returns of six figures on a few stocks…. If I get out to preserve my gains, what else should I be purchasing ?

Roger Conrad

6:41

Cash isn't a bad place to go to if you're cashing out of really extended stocks--for example the tech stocks leading the market higher with ever more stretched valuations. And after that you can take your time buying into some of the names we've mentioned here--high quality energy stocks a good example.

Frank

6:43

I have a skosh each of GMLPF and HMLPF. They continue to pay divys. Thoughts on continuing to hang on? Thanx

Roger Conrad

6:43

Hi Frank. We like dividends too. I'm not finding stocks under those symbols. Given the "F" I'm assuming their foreign stocks, Canadians? Anyway, sorry I can't help you further but feel free to drop us a line at service@capitalisttimes.com.

Iain

6:47

Hi Elliot and Roger, thanks so much for your time today!

I'm a new subscriber and new investor building up my portfolio from scratch. I've been following your advice for about six months and been able to obtain some positions at great prices to date. Today I would love your advice and perspective on how to strategically approach building my portfolio. I'm trying to plan my entries in a way that reflects the theory and balance behind the whole portfolio while realizing that some items may be above a smart buy price. As you noted in your most recent newsletter, I'm also not in a rush to buy everything at once, but expect there will be some good buy opportunities in the 2nd half of this year and would like to take advantage of good prices and smart entry strategies. How would you think about building up a portfolio that will perform well over the next few years when I don't have a lot of your current holdings?

Roger Conrad

6:47

Hi Iain. Thank you for that thoughtful question. It's a little beyond the scope of what we can offer you in this forum, being somewhat personal investment advice. But I think you have the right ideas for doing what you want to imbedded in what you've written. Mainly, look for best in class in a range of industries when they trade at good prices--our advisories focus on doing this. Diversify and balance what you buy so you're not overloaded in any one or two companies. Buy incrementally rather than all at once to put dollar cost averaging to work for you. Don't be in a hurry or afraid to hold cash while you're figuring out how to deploy it. And always ask questions--it's how we all get smarter and become better investors. You can always write us at service@capitalisttimes.com.

Alan R.

6:52

Hi Guys,

I am looking at companies you follow an am curious if I am looking at something that is out of date or not. I note that ET is listed as Conservative Risk and EQT as Speculative Risk and EOG, PXD and BKR are all listed as Aggressive Risk. How do you define the Risk Levels?

Thank you.

Roger Conrad

6:52

Thanks for that question. That designation--conservative, aggressive or speculative--depends heavily on the cyclicality of each company's business and balance sheet. Producers and services companies are generally the most cyclical, meaning earnings are most affected by changes in oil and gas prices. EQT is a gas producer, EOG and PXD are larger and more stable producers. Baker Hughes is a services company. Midstream companies tend to have less cyclical revenue. ET is one. It doesn't mean to imply one is a bad investment or a good one. It's just meant to give you some idea of the risks of each energy sector segment.

Roger Conrad

6:53

Regarding your other two questions, I think we've addressed them pretty much at length here. First, we do believe there are many stocks trading at good prices--not the ones leading the market higher to ever more stretched valuations, but certainly many that present safe, high yields that will grow reliably over time and in businesses that are historically resilient even in recessions. Second, the real question may be not when Big Tech ultimately flies too close to the sun, but are stocks we want to own trading at prices we want to enter them on a long-term basis? And again, while we like to hold cash at this point, we are finding plenty to move into patiently.

6:55

Sorry that came out of sequence. That last was the second part of my answer to a 4-part question from Arthur. Sorry for the confusion.

Guest

7:00

Roger: Please tell me again what OXY+ stock is. I never intentionally bought it. I had purchased "regular" OXY when you advised us to do so. I think previously you have advised us readers that this stock gives us the option to purchase it at a certain below maket price in the futre? Sorry that I am so conused. Appreciatye your help with this!

Roger Conrad

7:00

Hi. I guess you're referring to the warrants issued in July 2020 that are the right to buy one share of OXY at a price of $22 per until August 3, 2027. I don't see a lot of value to buying them over the common stock at this time. There's no dividend. And at their current price you'd basically be paying $62.50 at conversion for a share of OXY, which now sells for $61.85. Stick with the common.

Jim T

7:04

Roger, What's your current assessment of ERF,PEYUF, and, AETUF re buy/sell/hold at current prices. Thanks - - Jim T

Roger Conrad

7:04

Hi Jim. I think they're all still good companies. We track them in our Canada and Australia coverage universe--ARC a buy at 12 or lower, Enerplus is a hold at its current price and Peyto is also a hold. Of the three, Peyto has the most attractive dividend by far though it's under pressure from weak gas prices with earnings due out Aug 9. ARC trades above the highest recommended entry point so its effectively a hold ahead of Aug 9 earnings. ERF also announces Aug 9. We'll likely get more bullish on these names as gas prices start to recover.

Roger Conrad

7:06

OK. Well that's all we have in the queue for now, as well as from emails we received previous to the chat. If you feel your question was not answered fully, please drop us a line at service@capitalisttimes.com and we'll get back to you as soon as we can. We will also be sending you a link to the transcript of the complete Q&A, probably tomorrow morning owing to the late hour.

7:07

Thanks again everyone for participating today. As always, you gave us a lot to think about. And I can't recall a chat where there was so much going on with earnings and corporate developments. We will have a lot more advice and analysis on all of it in the coming days. Thanks again!

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