BEP.UN

Hi Mat, yes I wanted to top up anyways. Thanks so much for your response!

Hi Vanessa,

A split alone is NO reason to either add to, or start a position. If you had already planned on topping up your position (pre-split announcement), then buying before the split does make some sense. However, don't buy a company simply because it split the stock as it has no bearing on the fundamentals of the stock.

Hope that makes sense.

Mat

Thanks Mat! I have a small position already, but wondered if it's worth buying more to take advantage of the split. Am I thinking about this correctly? It would definitely be great if it pulled back a bit!

Hi Vanessa,

The "the unit/share splits will be issued to holders of record at the close of business on December 7, 2020". To be shareholder on record as of close, you must buy the stock (or already own it) at least two business days before the date of record. In this case, since December 7 falls on a Monday, you should be able to buy the stock on Thursday Dec 3 and be fine. However, I would probably buy the stock on or before Wednesday December 2 just to be certain.

In terms of valuation - the stock is getting a little pricey. However, the entire renewable industry has been bid up quite a bit and I'd argue as a whole it is looking a little expensive. However, BEP remains best-in-class and well positioned to deliver growth over the next few years. If an investor is worried about current valuations, one can take a partial position now and see what the price action looks like over the next little while to see what happens.

It is also worth noting that BEP typically commands a premium to peers because of its strong appeal and brand name.

Mat