Investment Q&A

Q: Hi 5,
If in a hypothetical situation an election were held today in the USA and a lunatic came into power, what would be your 5 top Canadian stock picks.

Thank you.

Q: Could you please suggest where the funds from the sale of the propane division will be applied and the impact on the business..

Thanks Bob Rose

Q: I know 5i's focus is not value investing but could I get the top 3 picks from your coverage universe that would fit or somewhat fit the criteria of a "value" stock at current prices.

Thanks

Q: I'm interested in buying into the utility sector through an ETF. ZUT holds Canadian stocks and has a yield of 4.98%. 99% of the distribution are eligible dividends.

ZWU holds a mix of Canadian and US stocks with about 45% each of eligible dividends and ROC along with 10% foreign income. The yield is 6.64%.

If we factor in the DTC, there's not a lot of yield difference. What are the reasons for your choice of ETFs? Thanks

Q: Please enlighten me on how bought deals work, using the most recent EIF bought deal as an example.

EIF floated new common shares at $42.45 per share recently and it was a bought deal so the underwriters bought the entire issue (plus the over subscription shares) for $42.45 per share. Thereby EIF received $42.45 per share (less the underwriter fees), while the underwriters assumed the risk in case if they cannot sell those shares at $42.45 or more. Am I correct so far?

In that case, with the EIF SP lingering under $42 a share, can I assume the underwriters will suffer a loss? After all why would you buy the new shares from the underwriter at $42.45 if I can get them cheaper in the open market?

Also if I were the underwriter, would I not be trying to drive up the EIF SP to over $42.25 to protect my deal?

Kindly shed some light on this type of transactions. Much appreciated.

Q: Is this a good entry point for Veresen? Tx

Q: Hi Peter. Have held this stock for a little more then a year and have been pleased with performance so far. Currently it is 2 percent of my portfolio. Would you recommend increasing position.
Thanks
Marc

Q: Please could you rate these 3 similar companies for:-
-Dividend sustainability
-Dividend growth expectations
-Insider ownership
-Debt Levels
-Current outlook for growth

Are any suitable for a full position in a RIF account?

Are any buyable at current prices, and if so which would you favour?

Q: The company is proposing a Capital Reduction in order to be able to maintain the current .09 quarterly dividend, of $100 million.Canada Business Corp Act states a corp shall not declare or pay a div " if there are reasonable grounds for believing that the realisable value of the corp's assets would thereby be less than the aggregate of its liabilities & stated capital"

In layman's language, can you explain what Rogers is proposing here, where the $100 M will be going and if you feel, as the company states, this is a positive move for shareholders?

Q: Please suggest 5 stocks that you think have a potential catalyst in the next 6-12 months that could result in higher than anticipated returns and indicate what those potential catalysts could be. Not looking for any micro-cap or very high risk suggestions. Thanks, and have a Happy New Year!

Q: Why do you think Bird is doing so poorly compared to Aecon and WSP? Is management poor?
Do you think they will e able to maintain the lowered dividend? How well is it covered?
Thanks

Q: What are your thoughts about AQN as a stock. I'm thinking of adding it to my TFSA. I already own FTS, CU and BEP.UN, although they are in my RRIF account. I am currently retired and looking for income. Is there a maximum percent you would recommend for utility stocks?

Q: Since I last queried about it nearly 5 months ago, has your (negative) opinion changed with respect to CPI Card Group as a good risk/reward speculative investment?

Thanks!

Q: For a person with no bond or preferred share exposure. What would be your top 3 or 4 holdings to add at this time? Keep up the good work, you guys do a great job.

Q: My only energy holdings are equal positions of ALA, ENF and PPL. These total 7% of my equity portfolio and are held in a registered account (RRIF). In your view does this represent an over-concentration in the energy sub-sector, and if so which of the three would you sell? I could sell ENF or PPL at a profit, but would incur a loss by selling ALA. Thank you.

Q: Thoughts on selling BNS at these levels for a cap. gain of $15 ooo, which is/will be offset by cap. losses. It represents 5% of our portfolio & the only Cdn bank we own.
Thanks,
Ted

Q: This Vancouver-based REIT pays monthly dividends in USD. Can you suggest other Canadian-based equities that also pay their dividends in USD. As a snowbird, it would be much more efficient to receive some regular income in USD.

Q: 5I Team,

I see that Founders Advantage Capital Corp. has been quite busy throughout December with number of announcements. I'd appreciate your thoughts on the news and your overall opinion on the company.

Thanks & Happy New Year,
Scott

Q: A senior in his 80s has recently inherited 200,000. We have put 100,00 into laddered GICs. We would like to divide the remaining 100,000 into 4 income investments. We would like your opinion on the following stocks. Income and safety are paramount. Please list them in order of preference and feel free to add any we have not thought of. BCE,BNS,ZPR,ENF,AQN. Thanking you in advance for your opinion

Q: I want to add a bit to my energy allocation and am debating between Vermilion and Superior plus. Any suggestions? My only holding at the moment is PKI