Investment Q&A

Q: IPL pays an juicy dividend yield of over 8 per cent at the current share price. The dividend is covered and they have growth potential with their proposed in service date of 2021 for their propane to plastic processing plant. It looks like a safe stock with some good upside in a couple of years. But it makes me a little nervous that it is a little like the old Canexus in that IPL is getting a little bit out of their wheelhouse of expertise (shipping stuff around in pipelines or storing those products) and they are entering into more of a manufacturing business line. Is that diversification or worsefication? Is it a stretch for a pipeline company to think they can build and operator a propane-to-plastic "factory"? Canexus was a chemical company that thought they could build a oil-by-rail loading facility and in their case diversification was definitely worsefication!! I am still interested in IPL but I would appreciate you thoughts about IPL growth plans.

Q: Please comment on PPL's announcement pertaining to the building of a new petrochemical plant. In December 2017 IPL announced a similar project and since then the share price of IPL has noticeably under performed their Canadian pipeline peers. How different is PPL's project from IPL? Do you know much about their Kuwait based partner? How will this impact the PPL balance sheet? Do you expect they will need to issue more shares to finance this project? PPL is one of my largest holdings and I invest in it because they have shown to have good management and have the steady cash flow from the pipeline businesses. Does this transaction change that thesis in any way? The project feels like an unnecessary bet and all of a sudden a riskier holding for a conservative income investor.
Thanks
Rob

Q: What are your thoughts on the partnership with with Petrochemical Industries ("PIC") of Kuwait, to construct a 550,000 tonne per annum integrated propane dehydrogenation ("PDH") plant and polypropylene ("PP") upgrading facility, expected to be in-service in mid-2023 and expected to generate annual run-rate Adjusted EBITDA of $275 to $350 million, net to Pembina?

Impact to balance sheet, cash flow, and growth? Thanks.

Q: Good morning. I’m looking to invest in either BPE or AQN, both of which companies you are positive about. I’m looking at the respective yields ( 6.6 vs 4.2) and am wondering about that disparity. If risks is correlated to reward, does that mean BPE is more risky and if so, why is that? I notice that BPE is showing negative EPS and that makes me wonder how they can sustain such an attractive dividend yield. Thanks

Q: I'm considering starting a position in SIA or CSH.un for a long term hold (5+ yrs) based on aging demographics etc. On a total return basis which do you think is the better play in a cash account?

Q: I am looking to recession-proof my TFSA with stable companies like Chartwell Retirement Residences and Park Lawn Corp. But my stock chart shows Chartwell collapsing from $14 to $4 in 2008/9, taking until 2016 to recover. Park Lawn doesn't seem to be listed that far back (but I note your report describes it as "recession-proof." Would you recommend Chartwell despite the 08/9 numbers and does your assessment of PLC mean that it would be relatively unaffected by a similar market meltdown?

Q: Hi,
In the year ended Oct-2018, revenue was up more than 30%, but earnings did not increase that much. Does this signals that the last acquisition is not as successful as the company expected or there are some onetime charges which has brought the net earnings down. If I want to add some money at this price, should I buy CCL.b or put money in TCL.A?
Thanks
Piyush

Q: Buy sell or hold

Q: I have had PIF on my watch list for utility's and would appreciate your sage advice as to the investment risk. Generating from geothermal seems like a pretty solid revenue base and it pays a 7% dividend and in south america away from team T N T (rump) (rudeau)
Thanks in advance
Bob

Q: Can you tell me your opinion on Labrador Iron Ore Royalty.
Buy, sell, or hold?

Q: Down 50%. Should I continue holding / sell at current price or buy more and average down.
Thank you

Q: What’s the difference between the different BAM shares, any preference?
If we already hold BAM.PR.N , should we change them to another BAM?

Q: What’s your opinion on safety of $20,000 investment in GICwith large Credit Union? Would you rather invest with TD, RBC or other large bank due to insurance on deposits under $100,000? Thank you.

Q: What sector would you put Park Lawn Corporation? Also, what is an appropriate percentage allocation for each sector

Q: good morning:
having trouble finding out how much of enbridges business is regulated in long term contracts and wondering if you know the answer to this question. wrote company but they did not really give me an answer. I think trp is 95% of its business is regulated just in case anyone wanted to know.
thanks

Q: Ray missed 5 of last 6 quarters.It has dropped from a $11 high on May 1 to current $6.43,near $5.92,the 1yr low.When it is reporting & will it miss again & what are the expected EPS & Rev.Thanks for u usual great services & views

Q: Cheers. I’ve noticed that Lumber futures have had a nice climb since the New Year. Do your sources confirm this? If so what companies (1 or 2) would stand to profit the most from this rise?
Thanks for your assistance

Q: Hi 5iR Team, The idiosyncratic reasoning of stock analysts never ceases to amaze me. In January TD raised SPB to an Action List Buy, their highest BUY rating for a stock. Meanwhile 5iR sells SPB? Confounding.....
In an event my question is on FAP and CHE. Over the last 25yrs I have owned both of these companies from time to time for income and modest growth. They have always managed to accomplish that goal for me. At this time they are trading at or near their lows for quite some time.
What are 5iR's current thoughts on these stocks?
Thanks Team. Cheers, Chris

Q: I have BLX now has been going now where in two years, would you recommend switching to AQN or NPI?


PS … PG& E filed for bankruptcy today

Q: What do you think about SNC earning warning today, due to problem with project in Saudi Arabia, what about the acquisition they make last year of a UK engineering company, at that time everyone though was a good deal?