Algonquin Power & Utilities Corp (AQN.TO)

Fortis just came out with good earnings. It is expensive at 19x. Algonquin is growing earnings per share at 15% with a lower multiple. He prefers AQN.

Been rolling over lately. Is there running room to come? Yes, it has rolled over, because they raised money to pay down debt. Now is a buying opportunity. It probably won't jump another third to $24, but the dividend offers a good return. Buy below $18. It needs a US acquisition that they're planning to push the stock up.

Sell Fortis and AQN to buy OTEX? AQN is a great utility; they've done a good job growing. He owns Emera in this space. Utilities have done very well until recently when a trade deal looked possible. He'd own OTEX before AQN, because it has generated a higher return on equity historically. Occasionally, OTEX makes a big acquisition to surprise the market in a good way. OTEX is doing more cloud work, which amounts to wider margins.

It is trading at an all time high. They have done great with a great management turn. Take profits if it gets too overweight in your portfolio.

AQN-T vs. NPI-T. He likes the sector. It is not a pure utility play. AQN-T has a nice upward trend. They have come off a little bit. They diverged since July. He is looking at whether they will come off a little more. Sept and Oct tend to be the worst performing months.

During low interest rates as a safe haven? This time of year, be defensive. Momentum isn't great. Utilities are good. Good year over year revenue growth, which is unusual for a utility. AQN is reaching end of seasonality from mid-May to late-August. It's holding 20/50/200-moving averages. Hold until end of seasonality. Emera and Fortis' seasonality starts in July, so maybe rotate to these.