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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: For ALA, AQN, DIV, DR, ENB, PRV.UN, what is the payout ratio for each of these companies? Is payout ratio a valuable measure of dividend sustainability? Can payout ratio about 100% be maintained? thanks
Read Answer Asked by John on November 19, 2018
Q: Please provide your opinion of GH's Q3 release. Gross revenue growth did not materialize while costs rose.

Company announced the proposed vend-in of CEO, VP and COO's Grande Prairie hotel for $12.5mm. Property looks appealing completed in 2017 with exceptional customer feedback and a 2 minute walk from Great Northern Casino. Guessing this asset could add approximately $4mm in gross revenues to GH's annual earnings, it's in one of the few areas of Alberta that has shown above-average growth and may continue as gas liquids are being developed in the Montney.

Not a game-changing transaction for the company but if they suggest that the hotel can be acquired and provide accretion for shareholders, what's good for the goose is good for the gander and gaggle of little retail investors.

GH stated that they have increased their LOC by $7mm. Do you think the company will issue common shares as part of the capital paid to Peace Country Hospitality?

I am offering up three 5-i doubloons for this in-depth query. Thank you
Read Answer Asked by malcolm on November 19, 2018
Q: Top 5 income stocks to initiate a new position? Seems like lots of beaten down or tax loss selling candidates this month.
Read Answer Asked by Stephen on November 16, 2018
Q: One more question on Crius and it relates to the capabilities of the management. Given the sell off and the recent results it would seem that the decision as to whether to hold or not has to do with whether management can be believed. If the outlook for adjusted EBITA of $100m annually is to believed, this seems quite positive since annual distributions would be $36m. In fact management says it makes the distribution sustainable.

However, this is the same management that a year ago was positive about the solar division, and municipal aggregations (even though they acknowledged the latters lowering effect on gross margins). In fact they were sufficiently sanguine that they even increased the distribution.
This year they are exiting solar and divesting municipal aggregations. The new strategy is to go back to focus on the original deregulated energy business. They acknowledge that the customer count will continue to decline over 2019 and the costs to obtain the high margin customers in the deregulated business is high. How long will it be before they get to their $100m?

In case you think these are the comments of a short seller I am in fact a shareholder who is wondering if this emperor has any clothes. Your opinion would be much appreciated.
Mike
Read Answer Asked by michael on November 16, 2018
Q: BPY has been range bound for 4 years - between $24-$29. At $24.70 today, it is essentially at the same level as in Jan'15. Would appreciate your views on why you think this is happening? Do you see any signs of corporate changes on the horizon that would be positive for price appreciation? Is it financial performance? An issue of management capability? Of Street expectation management? The rising interest rate outlook is a relatively recent negative. I had expected that with the Brookfield reputation for management excellence, a DY of ~6.5% and an annualized DGR of >5% we would see a 5% to 10% annual share price appreciation over the long term. Thanks.
Read Answer Asked by rajiv on November 16, 2018
Q: Good day!
I am an income investor, living on dividends. On Oct 24th or so I sold 50% of my full position in ALA for tax loss reasons, planning on buying it back late November in an ideal world. I sold over $21, and it is now at $16 or less.
However, I also have a 50% position in Chemtrade and also a 50% in American Hotel. All have somewhat larger dividends over the 10% mark. I have 'reasonable' confidence in a long term hold for all three, and see the great dividends as being very well paid to wait.
Anticipating a possible dividend drop for ALA, I might consider deploying partially or even fully into one of the other two, thinking their dividend payment is more likely to remain where it is in the short term, and yet the upside in each might be as good as ALA. I would appreciate your comments on these thoughts, and any guidance you could muster as to which direction to go.
Thanks!
Paul
Read Answer Asked by Paul on November 16, 2018
Q: What would your advice be relative to exceeding a theoretical 5% limit for blue chip Canadian companies which have been beaten down by simply market sentiment in a lot of cases? I'm thinking of increasing my holdings of some of those I have listed. I realize I can buy CDZ but have a slight preference for individual companies.

Thanks
Read Answer Asked by Ronald on November 16, 2018
Q: ..what is your view on interest rates....with trade wars and the next presidential election now fully in sight, all the good news seems baked into markets. would you raise fixed income and/or utility allocations. what about moving into longer term bonds....thanks as always.
Read Answer Asked by Curtis on November 15, 2018
Q: As you have suggested for GC one should not buy more than $100000.00 in view of insurance coverage. I have 2 question
1-Is there a 5 year ladder type GC available-as package ?
2 -if one buys 5 of 100000.00 ladder type GC from 1 financial institution ( bank or trust- 1 year ,2 year and etc. ) how the insurance coverage would work ?.Is it each one is covered separately or only 1 insurance is covered for all, max. coverage is 100000.00 for all ?.Thank you
Read Answer Asked by ebrahim on November 15, 2018
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