Earnings
October 17, 2019 - AW.UN
New! A&W Revenue Royalties Income Fund -Q3-2019 Results, Price Target Forecast .....
October 17, 2019 - ADN
New! Acadian Timber Corp. 1H-2019 Earnings, Price Target .....
October 16, 2019 - PLZ-UN
Plaza Retail REIT- 1H-2019 Earnings, Price Target Update .....
October 13, 2019 - PEGI
Pattern Energy Group -1H-2019 Earnings & Price Target Update .....
October 12, 2019 - LIF
Labrador Iron Ore Royalty Corp. 1H-2019 Earnings, Price Target Update .....
October 11, 2019 - NPI
Northland Power Inc. Q2-2019 Earnings & Price Target .....
October 10, 2019 - AQN
Algonquin Power & Utilities Corp. Q2-2019 Earnings & Price Target .....
October 8, 2019 - CNQ
Canadian Natural Resources Ltd. Q2-2019 Earnings, Price Target .....
Recommendation Changes
SRV.UN, PLZ-UN, ESI, KEG.UN, WIR.U, more...
Valuation Criteria

1. The Basic Business of the Trust – Who Are They and What Do they Do?
Business - utility, pipeline, natural resource, real estate, business trust
Industry factors - depleting, non-depleting, seasonality factors, hedging management
Economic factors - sensitivity to interest rates, currencies, commodities
Business diversification - single sector vs multi-sector business

2. Trust Financial Data – The Fundamentals
Ratio Review - distribution ratios, debt to equity, market capitalization to book value
Assets – type and age of assets that are key to the trust, capital expenditure reserves
Liabilities – amount, terms, interest rates, maturity schedules
Revenues – growth from same store, organic & acquisitions
Profitability - profit margins, expense control
Comparability – to sector peers, previous reporting periods
Valuation ladder – liquidation - going concern – goodwill premiums
Income tax – tax -deferred vs current income

3. The Legal & Organization Structure – Rights and Powers
Capital structure – share classes, debt instruments,
Corporate structure – subsidiaries, affiliated/connected corporations and trusts
Legal obligations – customer contracts, management internalization, unit subordination terms, management agreements, prospectus review

4. Quality of Reporting & Filing – Playing by the Rules
Clarity and timeliness of company reports Observing the legal filing requirements Adherence to Generally Accepted Accounting Principles “GAAP”

5. Management, Governance, Unions –Integrity Questions
- review of the quality of mgt decisions
-observation of good corporate governance practices – ie no conflicts of interest
-unions – expiration of contracts, general relations

6. “Industry & Economic Issues” – The Bigger Picture
-competitors, product cycles, brand strengths, supply/demand for products
-broader economic factors - interest rates, economic indicators, global trends
-current taxation and regulatory trends and issues

7. Sources of Information
-websites for - “trust and related entities”, SEDAR/Edgar, independent research sources,
brokerage firm research, webcasts, general news media, ratings services.

Produced by H.C. Levant, – Reproduction of this material in part or it’s entirety is subject to copyright licensing agreements and is forbidden except only with the express written consent of the author.

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