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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: 11:11 AM 5/17/2018

Current yield on ENF at today's price [$29.41] is 7.6%. Enbridge yields 6.3% at the current price [$42.41].

I am trying to find an acceptable alternative company to ENF to invest in that would have a comparable yield and have the same level of business quality, Market Cap, and reliability of dividend.

IPL, ALA, GEI, RNW, CHW, TF, SRV.UN, KPT, JE, KWH.UN, CHE.UN all have similar dividends but are hardly equivalent in quality. Would you pick any of these?

I cannot find any acceptable substitute of the same quality so I would appreciate your suggestions in ANY sector that you would choose.

Maybe just taking ENB shares is the best choice?

Thank you............ Paul K
Read Answer Asked by Paul on May 17, 2018
Q: I hold 1000 ENF shares and if the deal goes through they will convert to a 0.7029 share of ENB. I would then own a total of total 703 ENB shares. The price of ENB today is $42.28 which means I would hold a value of $29,723 in ENB if the deal goes through. If the price of ENB goes up lets say to $45.00, do I still receive 0.7029 shares of ENB for each ENF share I hold and would then have an ENB value of $31,633 and therefore making a profit of $1,910 from today if I sold it, in this scenario?
Read Answer Asked by Gordon on May 17, 2018
Q: I am currently considering selling Transcanada for a small tax loss-$2000- and immediatly buying Enbridge. This would give me a rather large allocation to Enbridge, which I currently own, as well.

Just wondering whether it was worth the trouble. And possibly the risk of having a large allotment to one stock. Do you think Enbridge has a big chance of rising much more than TRP? or, are they likely to rise at the same pace? (that is, of course, if they rise).

I guess I am asking you to put your magical, look into the future glasses on here, but I am sure you would have a better idea than me on this.
thanks once again
Read Answer Asked by joseph on May 17, 2018
Q: I listened to Morneau this morning talking about indemnifying Kinder Morgan for any political risks/delays in KM's pipeline project. The mention of the indemnity applying to any other company who may take on the project means to me that this was a topic of conversation. I am thinking that KM may be trying to position this project as one that they could sell and thereby exit Canada. Their name has been tarnished and I would think that their Board and shareholders would prefer to sell the old and new pipelines, exit Canada and invest elsewhere. So, which pipeline companies are most likely to be interested in buying out KM? My first thought would be Enbridge but with their debt I think they'd pass on this. TRP or is there another one?
Read Answer Asked by Earl on May 16, 2018
Q: I would like to sell, I think, one of either EIF or ECI to buy CNR. I feel that CNR will provide greater stability, albeit at potentially lower long-term growth, than either of the named stocks. While I like the dividends each pays and am not concerned at the moment about their continuing, I am more interested in overall long-term returns however they may be achieved. The question is which one to sell, assuming you feel that this is a good move. I realize there is a risk/return tradeoff here and am willing to give up some return if warranted.

I have owned EIF and ECI for many years so I am familiar with their ups and downs and warts. I am not crazy about ECI's business model and wonder about future growth. I am concerned about future volatility (shorts, aviation industry etc.) with EIF but think ultimately it had good growth potential. Both of these stocks are well off their highest highs and I wonder if either will ever get there again.

Does one stand out to you as the better choice to sell or again, should I just stay the course? I also own HEI and will be keeping it. That gives me about 8% between EIF and HEI so I wonder if that favours selling EIF to minimize an aviation concentration risk.

Appreciate your insight and guidance.

Paul F.
Read Answer Asked by Paul on May 16, 2018
Q: I noticed you recommend AQN for the utility sector. I am interested in taking a position but when I look at NPI I find it more attractive in many areas (not all). So I'd like to know why you would pick AQN over NPI? AQN is bigger so adds diversity. Dividends are pretty much the same. But on the NPI side its got better margins, EPS, positive cash flow, less dilution, much higher ROIC and ROE. Also better momentum in the short term, long term not as good. What gives AQN the edge here from your analysis? Thanks!
Read Answer Asked by Adam on May 16, 2018
Q: My self-service broker has in its inventory Sherritt bonds, having 7-1/2 years to maturity on 11 Oct 2025. The (annualized) yield to maturity is 9.8% .
To redeem the bonds at full value on the maturity date, Sherritt does not have to do well : it just needs to survive without defaulting on its debt.
I am fully aware that these bonds are not suitable for the safe fixed-income part of my portfolio, but rather would be lumped in with my equity investments in terms of risk.
What is your opinion as to the probability that Sherritt will, at a minimum, "at least barely survive" so that they would be able to redeem the face value of the bonds in 2025?
Thanks!
Read Answer Asked by Gregory on May 16, 2018
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