Investment Q&A

Q: For your info

However, Enbridge could face some other problems in Michigan. The newly elected governor Gretchen Whitmer has voiced opposition to the aging Line 5 pipeline, yet another aging pipeline that ferries oil from Alberta, through Michigan, to refineries across the border back in Canada. The current governor, Rick Snyder, reached a deal with Enbridge in early October, which would require Enbridge to encase the pipeline in a cement tunnel to prevent any leaks. Such an endeavor could cost as much as $500 million and take seven to ten years to build.

Whitmer has suggested she would seek the closure of Line 5 before it can be replaced, a move that would put a further dent in Alberta’s takeaway capacity. Line 5 is 65 years old and carries 540,000 bpd.

Q: I have a question about LIF.
In the OUTLOOK section of their 3Q press release the company commented.....In its press release dated June 18, 2018, the LIORC Board indicated its intention to call a special meeting of shareholders to approve amendments to the articles of incorporation to, among other things, allow the corporation to invest in other mining royalties. While the immediate opportunity referred to in the press release remains a possibility, the Board has decided to defer the calling of the meeting.

You commented to a previous question that the takeover chatter on LIF is ongoing....with the above comment in their Outlook is the ongoing takeover chatter excellerating? do you have insight into who is speculated to take them out and what might be a friendly price? Thanks

Q: I want to derisk my portfolio somewhat, and purchase approximately 300,000 in GIC`s. I am thinking about waiting till after the anticipated Dec rate. Would you wait and buy them all at that time, or stagger the purchases ?

Q: I tendered my ENF shares and am wondering what the usual time line is for having them changed to ENB shares and deposited in my account along with the cash per share allocation. I noted the whole exchange deal happened on November 8. The ENF shares seemed to have disappeared from my on line Investors Edge account, i.e. they have been de listed from the TSX. Not sure what happens next or if i should be doing something to expedite the issue. Thank you for your help. Bill

Q: When considering asset allocation percentages do you take into account the present value of purchased lifetime annuity income as the equivalent of a bond asset value, or is there another way to consider this value in the fixed income portfolio? Thank you for your response.

Q: Can I get your opinions on these two?
Payout ratios, dividend safety, prospects for long term growth?
Thanks

Q: I hold a full position in DRG.UN and would like suggestions on some other Canadian dividend paying companies or REITS that have a European focus and are solid financially

Q: Please comment on recent earnings from Chesswood and Northwest Health. Thanks

Q: MRG.UN is up over 11 percent in the last month in the middle of this correction. It's last earnings report on Oct.30 was pretty good and they did slightly raise the dividend but the move seems too big for the results. Can I get your thoughts on this stock?

Q: Hi team,
On Nov. 8 you said expected EPS is 0.11...... previous year was 0.44.....Wouldn't that huge difference concern you and would be bad for the stock price?
Thx!

Q: Another source has made the following comments:

Higher commodity prices and solid demand for a number of its more important chemical products should lead to improved operating results in the back half of this year and extend through next year. With a free cash flow (FCF) yield of 11% based on last year’s results, and a FCF yield that moves to around 14% based on this year’s projections, Chemtrade is selling at a very attractive valuation.

In addition, the 9.6% dividend yield should be well supported by cash flows with a payout ratio estimated to come in at around 70% this year. As operations improve, we expect the stock to react positively as its payout ratio declines further. This offers us a compelling valuation for a company with improving fundamentals.

I know you aren't happy with its past performance but it looks like it's getting very attractive for income?

Q: What do you think of CTL moving forward after recent earnings? Is the dividend reasonably safe?

Q: Hello 5i,
I dont own any of the Brookfield group currently, but would like to at a discounted price. How would you rank all the bips, beps, bamas, bpys, etc, Which would you buy at current prices, for best 2- 3 year holding period, including growth and dividends ?

Q: Hi,
Can you give me your thoughts on their 1/4 and what you think about their future for a 4-5 year hold.
Thanks

Q: How did the quarter look for Boralex? would be a buyer at these levels?

Q: Hi 5i,

What is BAM.A' s ownership of its publicly traded subsidiaries?

Thanks,

Q: May you provide an assessment of the earnings announced today by T and ITP?

Thank you,

Joseph

Q: Hello 5i,
GS has a CFO of 46 million and pays 74 million in dividends giving a payout ratio of 161%. When using P/E we have 1.00 / 1.21 giving a payout ratio of 83%. This seems to be turning the 5i suggestion of using div / cfo upside down. Do we do just take the formula most expedient or is the dividend in real danger?
Thank you
Stanley

Q: Hello 5i team: ALA was originally at a20% weight in my tfsa.now ALA is down 50%.considering no tax loss advantage would you suggest I dump it ? I have read other answers. I hold all the energy I want in my open account. Any Best case replacement to regain my loss?or hold? Time frame not an issue. Thanks Larry

Q: I asked this question yesterday but it must have been lost in the ether since it wasn’t answered.
AltaGas issued an IPO in mid October at a price of $14.50 which was well before the stock price dropped fro $20 per share to about $16.50 after the 3rd quarter results were released. This makes no sense to me as I would believe the stock price should have immediately reacted to the announcement of a share offering.
In the 3rd quarter results, the company announced an increase in dividend to $0.1825 from $0.175 beginning on November 27. This again makes no sense to me since I was under the belief that the company needs to shore up its balance sheet. In addition, at current prices the dividend is already at about 13% of price.
Can you help explain both of these?
Thanks
Ed