Investment Q&A

Q: I notice that you often recommend Telus and Rogers, but I haven't seen anything about Quebecor. However, I am up 38% over the last year. Is there something I am missing? I do like Telus, not so much Rogers. Do you like QBR.B and should I continue to hold? What news do you have in the pipeline that might make this stock not so desirable, if any? I can only find two comments about QBR.B in the past year.
Thanks, Elizabeth, Hamilton

Q: I have a full position and am in the black with the stock. However, the latest results were weak and the stock has moved down. Is it time to sell and move on or do you feel ITP is still a good hold with upside potential? If you think selling is in order, what would you replace it with?

Q: Hi Guys I am sitting on cash in my tsfa and would like to reemploy looking for a div payer with some growth
Currently hold KWH.un RPI.un Stb.
I have exited BPF
Kind Regards
Stan

Q: Hi, could I get your opinion on a diversified ETF selection for a non registered account.
I was thinking of 3-6 ETF's with a 4-5% dividend and to preserve capital as best as possible. This will be for a long term hold for retirement income. If I can get the same performance with 2-3 ETF's that would be fine.
Thanks for the help

Q: Hi Peter and team

I was thinking of starting a position in DR after the last Q report (and I wish I had) but I found something in the financials (from morningstar.ca) that gave me pause:

Earnings per share: $.46
Earnings per share (diluted): $.18

The diluted share count did grow by 8,000,000 (or roughly 25%) but that doesn't account for the difference in per share earnings. Was there a share offering? How should I interpret the bigger difference in per share earnings versus share count?

Thanks
Peter

Q: Hello,
I currently hold a DRIP Portfolio consisting of BAM.A,BNS,RY,MFC,SU,FTS,RCI,ECA,TRP,and POT. I have found this style of investing quite profitable and am looking to add a couple names. I'm considering WSP and TCN. Given the names I already own and the valuation of the two companies, which one would you suggest? Can you think of any other companies that might be a nice addition? I have a 15 year time horizon. Thanks for your awesome service.

Q: Im addressing over exposure to this sector, don't need 4 of the 'same' things.......over a six month time frame, which one or two have the best upside in your opinion?

Thanks!

Q: Although I have referenced AQN and FTS in this question, I am hoping you can apply your answer to utilities in general.

My question is how do these companies operate such that some are considered to have good to great growth potential while operating in a sector that tends to be highly regulated in terms of pricing power. The major companies tend to be acquisitors. However, unlike other industries, buying another company doesn't improve pricing power, eliminate competition or reduce selling costs through operating synergies (or at least I don't think they do.) Ontario Hydro's purchase of a company in the US northeast comes to mind here.

I can see that financially, larger companies may have lower costs of capital and higher cash flows which could lead to quicker modernization and better upkeep of equipment but is there more to it than that? What am I missing that makes AQN a growth story and not just a dividend producer?

Appreciate your insight.

Paul F.

Q: Hello Peter and team, two questions:
1. I already own VIG. Can you suggest another unhedged US ETF for US holdings in an RRSP but with a focus on higher dividends. (I'm somewhat partial to Vanguard, but flexible.) A low fee is much preferred.
2. For an already diversified portfolio, and for a 5 - 10 year timeframe, would you kindly rank your choices for 'geographies' for new money - as between the Canadian market, the US, Europe, Emerging Markets or 'International' (i.e., excluding North America). If you have another category you would insert, please do. Also, if you like the long-term prospects for a particular country ETF, that would be appreciated as well.
Thank you@

Q: Hi,

I have no bonds in my portfolios and am interested in picking up some laddered corporate bonds, specifically convertible debendetures (unrated) from smaller firms. Pays about 5% and after purchase bonds would comprise about 3% of my portfolio.

I'd like to hear your thoughts, and if there are other options for getting some exposure to bonds (ETFs for ex.).

Cam

Q: Thinking of deploying some cash, maybe 3% of portfolio, between high yielding names that could have significant upside if things work out well for them (not usually my investment strategy - buy names with significant challenges and hope things work out). Among the names I'm considering are Callidus Capital, Pivot Technology and Alaris Royalty. Any problem with this strategy? I'm particularly intrigued by Pivot's eps expectations over the next few years (granted only one analyst follows them but he is forecasting 2018 eps at 63 cents and 2020 eps at $1.24.

Thanks.

John

Q: What are your thoughts/valuation on VNR in the 5i income portfolio?
Based on the entry price, it looks like you bought around mid 2014 and had a nice 40% gain, inline with the other utilities. But now VNR never gets a mention for utilities to own, and the recommendation is always between FTS, AQN, BEP.UN, or NPI.
I'm retired, living on dividend income and interested in being more defensive in my portfolio and increasing my position in utilities.

Q: Regarding the " legal reserves " question on Crius Energy. I wrote Investor Relations and asked them. This is the reply I got ........
Hello Garth,

The legal reserve charge is related to various claims and proceedings that Crius Energy is a party to, arising in the normal course of business, including several ongoing litigation and regulatory matters relating to certain sales and marketing practices. The company is significantly closer to resolution of these pending claims and has entered into an agreement in principle to settle these matters.

I hope you find this helpful,
Kelly.

Q: Greetings,

I have a full position in Altagas spread across three registered accounts. I've held this for years and plan to keep it but I was wondering whether it would be a good idea to sell the shares now and buy the subscription receipts. Seems like the only downside to that would be a case where the big deal falls through but the stock prices goes up. Can't see that happening. Am I missing something?

Q: Can you tell my why someone would not be a buyer of enbridge right now. In an earlier question I had you mentioned with my time horizon it may be more prudent to by something "growthier" but with ENB dividend, growth and current valuation how can you go wrong? Can you give me the sell side thought?

Q: Everyone is worried about the acquisition of WGL. What is the big deal if the acquisition does not go through? Besides the one time cost associated with the acquisition, is there any other impact to ALA?

Q: Can you give your thoughts on the most recent quarterly results from AQN and EMA? How did they compare to analyst estimates?

Thanks

Q: The combined value of my holdings in these companies is too much for me to hold in one company. Does it matter which I sell or when I sell it? What percentage of a portfolio would you be comfortable with for the final holding?

Many thanks.

Q: The company held a conference call to discuss their quarterly results this morning. While the results seemed ok their call has obviously spooked the markets. Was this due to the increases in their legal reserve due to certain law suits they are facing? There was also some mention that they would have no contribution from residential solar in 2017. Could you please provide your analysis/understanding of the issues they are facing and how serious these are for their long term longevity and profitability.
What do you advise shareholders do?

Q: I'm considering selling ECI to replace with KWH. Would todays price make that an attractive trade? Your opinion please.
Thanks Peter.