PPL

Thanks for all.

HI again,

Yes - that obviously makes it more difficult.

I'll provide my thoughts on Pembina - in this environment energy companies make for very difficult investments. As a pipeline however, it is better positioned than producers to navigate a low price environment. They are not immune, but are still better equipped. At this point, I would not expect any material increase in price over the short to medium term - so long as the price of oil and the industry itself remains pressured.

In the terms of the dividend, I believe (and most analysts agree), that it appears safe. At least for now - the longer low oil prices persist, the more the dividend comes under scrutiny. Personally, I own PPL and am choosing to keep it as an income play. I don't expect it to jump in any meaningful way, but the dividend is attractive enough for me to keep within my dividend growth portfolio. Would I average down? Not at this point as there is too much uncertainty in this environment.

These are obviously my own thoughts on the company and why I am holding and not adding to my position currently. I may sell in the future, but it will all depend on the safety of that dividend.

Mat

Hi Mat,
Incase the answer to the questions one should raise are as below
- Why did you buy them in the first place?............No stock investment knowledge but bought after hearing from someone
- Has your investment thesis changed?..............No thesis made when invested...idea was to make money by getting dividend and stock price gains

Now in this scenario I know that it was a wrong way of investment strategy but how can it be handled so that from now on we don't go wrong and hope you can advise and help in such cases.

Hi there,

We seem to get asked these types of questions quite a bit - what should I do if i am down by xx%? Sell or average down? The answer is typically the same.

Investors who are sitting on these paper losses have a choice to make and a couple of questions can help guide them. Ask yourself:

- Why did you buy them in the first place?
- Has your investment thesis changed?

Answering these two questions will put you on the right path. My approach is simple - once i understand why I invested, which is essentially the investment thesis, I ensure it hasn't changed. If it hasn't, then I will likely hold my position.

Will I average down? That depends on many factors including my portfolio weighting, investment goals, and other opportunities. As you can see, there are many factors that go into this decision. The only time I will average down is if I am underweight, it fits within my investment goals, and i see no better/equal opportunities out there that fit within the context of my plan.

When do I sell? I will sell if my investment thesis has changed for the worse and I see no path to returning to my original thesis. I then cut my losses and move on. I might also sell if my investment thesis hasn't changed, but I see a better opportunity to put that cash to use. I would then sell, swallow my losses and put that into another opportunity. All of this however, is in the context of my overall investment plan and portfolio goals.

As you can see, there is no easy answer here but circling back to why you bought it in the first place, and understanding if something has materially changed can help you make an informed decision.

Mat
(Of note, I am long PPL)