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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: I'm in the process of ranking tax loss candidates and try to decide between DH and AD which one has a better chance to show signs of life before 2016 YE.

I'm leaning towards DH only for the reason it's seemingly under certain manipulators' control (based on the hard drive downwards trade actions of late) and unless they turn out to be like what you said "short sellers are not god, they can loss money too"). AD is a "show me" story, but can they do a turn around by Q3?

Your assessment will help greatly in my decision. Thanks.

By the way no more use of stop losses for me. I foolishly lost EIF and I'm buying it back at a premium today. Another lesson learnt at a high tuition. LOL.
Read Answer Asked by Victor on August 19, 2016
Q: Hi 5i,
Although they have both been good investments, it seems that since 2010 BIP units have outperformed BEP units by a decent margin. Are the profit margins lower in BEP's focus area or is there something about the energy project investment arc that delays returns in the renewable energy space? I'm wondering what the BIP unit outperformance is attributable to and whether it is a factor that is likely to continue or whether, in the future, BEP is more likely to keep pace, or even to do a little catch-up. I'd be interested in any thoughts you may have on this. Thanks!
Read Answer Asked by Lance on August 19, 2016
Q: Regarding Richard's question re AQN. I think he was asking about the instalment receipts in particular. They were recommended on BNN Market Call.
I participated in the EMA and FTS instalment receipt deals with their large USacquisitions. In both cases things worked out well. Of course it has been a hot market for utilities so the underlying shares increased in value while I was holding the receipts, which obviously helps.
Two comments 1) These deals make sense only if you would be comfortable owning the shares when the call for funds comes (when you have to put up the other 2/3 of cash). It is kind of like selling a put. The income is nice, but you have to be ready to buy the security if things go wrong. 2) best not to buy in a registered account, unless you have room to add the additional 2/3 cash to buy the shares. You don't want to be forced to sell the receipts at a bad time just because you are trapped by your RRSP or TFSA limit.
Hope this was useful.
Cheers
John
Read Answer Asked by john on August 18, 2016
Q: In a recent member's question regarding a conservative portfolio construction you said that there are good consumer discretionary companies that are growing income and dividends. Which ones in Canada and the US would you recommend other than the auto related ones? Many thanks for the great service.
Read Answer Asked by Derek on August 18, 2016
Q: Well I foolishly falls for the shorts' tree shaking con game of driving down EIF to create a panic and allowed my EIF to be stopped out $32.41 (yes, I kept a bit of profit at this level). I now contemplate about buying it back at around $34! Sell low and buy high, is it not what investing is all about? What more can you say about small retail jittery!

Anyway I would like your opinion on buying EIF back at this price level, and it is wise to do so.

sign - "too embarrassed".
Read Answer Asked by Victor on August 17, 2016
Q: Regarding my question earlier about 2 REIT's to diversify existing position in AX.un, I probably should have pointed out preference for market cap and mimimum current yield. I like (and anticipated) your recommendation of Chartwell however IIP.un sacrifices too much current yield and market cap security to make up for potential growth for me. Would CAR.un fit nicely given my desire for a larger market cap? Is H&R too much like AX.un? thx!
Read Answer Asked by Tom on August 17, 2016
Q: Hello 5i team,

Not sure why my question does not reach you as I've tried twice in the past 2 weeks.......hope it gets through to you in this 3rd attempt.

I am 61 years old and about 16% of my overall portfolio is in bonds. The rest is in income stocks and growth stocks similar to 5i portfolio. The yield return of fixed income instruments is so low currently and I am rather comfortable owning income stocks. Now, I have $60,000 in cash in RRSP and I have the following options. Please comment on each option and your preference and recommendations.
1. To buy several corporate bonds with maturity of 3 to 5 years and to hold till maturity.
2. To buy more income stocks like AW.UN or EIF.un
3. To buy ETF of inflation bonds
4. To buy ETF of high yield bonds
5. To buy ETF of US corporate bonds

Please advise preferred ETF for option 3, 4 and 5.
Many thanks.
Read Answer Asked by Willie on August 17, 2016
Q: Maybe its me, but can you verify what EIF's consensus 2016 and 2017 current eps estimates are?

Prior to their earnings report, Investor's Edge showed 2016 estimates at $2.49 and 2017 estimates at $2.66. Post earnings report, Investor's Edge is now showing $2.29 and $2.46 as 2016 and 2017 estimates. A little puzzling considering EIF's recent report was pretty good, in my opinion.

Thanks for your thoughts.

John
Read Answer Asked by john on August 16, 2016
Q: Hello Peter and Ryan,
I would like to get your opinion on the Army of professional investors who are all saying that yield stocks like utilities and telecoms are over valued and that their P/E's are too high. The last time I heard noise (chatter) like this was back in the summer of 2014 when the P/E's of all the pipeline stocks were at all time highs and then they all sold off with oil prices.

Being a retired person I have owned telecoms and utility stocks for a while now and like being able to collect the yield.

Thank you, Charlie
Read Answer Asked by CHARLES LA on August 16, 2016
Q: Can I have your opinion on this ETF. It has the best 1/3/5yr returns when compared to others in the Canadian Dividend and Income universe. For example it has outperformed CDZ by almost 3% annualized over the past 5 years. What has contributed to this over achievement and is there any reason why it won't continue to do so over the next 5 years?
Thank-you.
Read Answer Asked by Albert on August 16, 2016
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