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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: Hello,

I am looking for a Canadian company that might get a boost from Cdn Defence spending due to US asking NATO members to spend more on defence.

I believe HRX has some defence exposure (although it appears by the stock price that it missed revenues?) Are there any others? Any you would suggest as a decent investment, as is, without increased spending? Please list them in preference.

Thank you,

Gerald
Read Answer Asked by Gerald on February 16, 2017
Q: I am thinking of rebalancing my Dividend growth portfolios by selling some of my over weighted bank winners and buying some of my laggards and lower positions. Could you please rank these potential laggards for acquisition into a mainly dividend growth portfolio, the candidates are SIS, SYZ, PUR, AGT, CGX, AQN, SPB & DHX. Please let me know if you are really strong for any of these stocks or would really suggest avoiding any of these companies. Thank you again for your great service.
ps KHW looks like a real winner, thank you.
Read Answer Asked by Mike on February 16, 2017
Q: Hello 5i,

I bought VSN before Xmas on a analyst report from RBC. I have a good return so far, but I know you are not very fond of this company. Therefore I would like to replace it with something more attune to your thinking and values.

My question is what do I replace it with. Possibly ALA.r?

I do thank you all for your good work and valued opinion.

Rick
Read Answer Asked by Rick on February 15, 2017
Q: Good afternoon!
In looking at your comments on Veresen (VSN), I can’t quite pin down reasoning for what seems to be a change in viewpoint here.
On Dec 12th you state: “Because JC was already rejected once, we would not view this as overly significant, and is likely already embedded in the price (after Friday's drop). The company can still grow, and there will be other projects in the future.“
On Jan 5th you state: “We remain quite comfortable with VSN for income, primarily, with some growth. Good earnings growth is expected in 2017.”
On Feb 6th the perspective differs, and you state that you are “... not very big fans of VSN”
On Feb 6th and on the 14th you also now imply that the Jordan Cove rejection is NOT built in to the price, and that the valuation is high. You also stated that revenues are expected to decline, but my brief research into the company, suggests otherwise, particularly their February guidance presentation indicating $1.4 billion of projects in the works, accretive on a per-share basis, quite a bit of growth for a company of less than $4.5 billion in market cap. In a recent Globe and Mail article (published on Stockhouse, also) the following spoke to valuation based on EBITDA: “According to Bloomberg, the stock is trading at an enterprise value-to-earnings before interest, taxes, depreciation and amortization (EBITDA) multiple of 10.5 times the 2017 consensus estimate. This is below the five-year historical average of 13.2 times and below its 10-year historical average of 11.1 times.”

Could you elaborate on what gave you this apparent change of heart, especially in conjunction with your comments about the ‘pro-pipeline’ Trump viewpoint?
Looking forward to your thoughts.
Thanks
Paul
Read Answer Asked by Paul on February 15, 2017
Q: Hello, Thanks for your wonderful note about the Altagas subscription recipts. This seems to be case of heads, I win a decent amount (10+%) tails i still win some (2.8%+). I called my broker he says Ala.r is trading in the open market..not in ipo any longer. I wanted to clarify if Ala.r is the correct symbol if i were to go through with this..actually i already did make small purchase. Now thinking about half position.Thanks again.
Read Answer Asked by Shyam on February 14, 2017
Q: Thoughts on Alta gas valuation and stability of dividend. I only have a half position of Raging River. I am going to pull the trigger and take a full position. Would you add AlA at this time or recommend another. I'm open to risk and have a time frame of 5 years plus.
Read Answer Asked by Richard on February 14, 2017
Q: Hello 5i. I really enjoy reading the questions on a daily basis and consider your replies VALUABLE information. So much so I recently renewed my membership.
I have held RDM corp for the past 3 years and it has been a steady, low volatility stock. After todays buyout news, I am considering selling and putting the cash into another company in the same space. Do you think TNC is a good replacement? It seems expensive compared to RC.
Thank you.
Read Answer Asked by Phillip on February 14, 2017
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