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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: Hi,
Lets say Enbridge does what a few analysts are thinking and drops from its current 40ish to 33ish. Does this really have an effect on anything besides presenting a great long term buying opportunity? If dividends are covered by cash flow, and cash flow is under contract, does a lower share price change anything besides market cap? What other consequences do you forsee there? Im thinking about buying in now (I have many years to sit on it, so short term drops dont bother me), then watching it and averaging down if the opportunity presents itself. Since dividends are covered almost 3 to 1 by cash flow, even if the share price drops to 33, could they still not afford to continue raising the dividend to encourage more buying and therefore help re raise the share price? Maybe Im oversimplifying this, thanks.
Read Answer Asked by david on March 21, 2018
Q: This is not a question, it is a statement!
As one of your members states ENB is in free fall ! Very reputable Advisers stated as I mentioned that ENB will drop to 33 plus dollars ! But you keep defending this Company for its dividend! The stock has dropped from 58 dollars to 38 dollars now while you maintained a buy rating! How many years of dividends you have to receive to make up for the capital loss if you own 1000 shares at 58 ?
I think that a moving stop at a 5% loss from a new height is a much better choice at the prevailing energy markets!!!
Read Answer Asked by Frank on March 21, 2018
Q: Clearly the stock is in the doghouse and is getting no love whatsoever. Reading the Q&A's I keep reading that the dividend is covered by cash flow. There is no disputing that fact when looking at the cash flow statement. But the dividend pales in comparison to the other huge use of cash which is capital projects. What do you think it's going to take to turn the share price around? The market does not like something regardless of all the handholding and reassuring management has done. Maybe the company needs to come out and say they are stopping all future dividend increases (it yields well over 6% now) and that cash will go directly to pay down debt. Do you think that would be a catalyst to stop the freefall?
Read Answer Asked by Richard on March 21, 2018
Q: Hello 5i team,
I hold 3 stocks in the energy sector: ENB since 2012, KEY since 2010 and PKI since 2006.
With an average total return of 5% per year (which basically equals the yield) ENB is, by far, the worst performer.
That begs the question: granted ENB is a good company, but it does not seem to be a good stock to own.
Thank you,
Antoine
Read Answer Asked by Antoine on March 21, 2018
Q: Hi, Desjardins came out with a $11.00 price target on CRIUS and a buy rating. That's almost a 49% increase and ad to that the 11% dividend. In your vu based on the latest financials, is this a realistic price target. Also, would a rate increase by the Bank of Canada on the 18th of April put more pressure on Crius's stock price.
Thank You.
Read Answer Asked by André on March 21, 2018
Q: I know its hard to compare these companies but do you have a preference between Banco Santander, Lloyds or Fiera Capital? Focus on value and dividend growth for a long term investor.
Read Answer Asked by Gary on March 20, 2018
Q: I currently hold PEGI at a small loss. It was picked by our advisor when we had one. I'm now managing the account and am less familiar with it so am considering selling and replacing with Crius, which at least I have 5i to support me with.

Both have their risks...what are your thoughts on the switch?

Cam.
Read Answer Asked by Cameron on March 20, 2018
Q: This is a question asking for clarification on a question Bryan asked about clf on march 16.

He was concerned about preservation of capital. You seem to suggest that GIC's might bea good route as they would preserve capital. Please correct me if i am wrong but i was under the impression that if one holds a bond index fund such as this that one will likely get a return of capital as well, as new bonds at new prices will gradually be added. Is tis more or less right. And if it is, then it would probably be reasonal to stick with CLF, no
Thanks
Read Answer Asked by joseph on March 19, 2018
Q: I have been researching Crius in great depth and I cannot find the cause of the price freefall. I am beginning to think there Crius might be impacted by the new Federal Energy Regulatory Commission guidelines on pipeline and electricity transmission line profits. Still, it seems a stretch the Commission would destroy an industry.
Can you help a drowning investor?
With great appreciation.
ED
Read Answer Asked by Ed on March 19, 2018
Q: Good morning 5i
Missing from my notes is the reason for opening a position in crius energy. I thought it was on a positive comment or portfolio inclusion at 5i. But I can find neither direct reference.

Would you please remind me of the attractiveness of kwh ......recognizing this is not a fortis or Brookfield size/risk type company.

What is it that is not working and dragging the stock price down?

Thanks
Dave
Read Answer Asked by David on March 19, 2018
Q: Other than ENB. what other Canadian stocks could be effected by the MLP ruling and to what degree. also if and when would this come into effect.
Read Answer Asked by colleen on March 19, 2018
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